The Trump administration is poised so as to add China’s prime chipmaker SMIC and nationwide offshore oil and fuel producer CNOOC to a blacklist of alleged Chinese language navy corporations, in accordance with a doc and sources, curbing their entry to US traders and escalating tensions with Beijing weeks earlier than President-elect Joe Biden takes workplace.
Reuters reported earlier this month that the Division of Protection (DOD) was planning to designate 4 extra Chinese language corporations as owned or managed by the Chinese language navy, bringing the variety of Chinese language corporations affected to 35. A latest govt order issued by President Donald Trump would stop US traders from shopping for securities of the listed companies beginning late subsequent yr.
It was not instantly clear when the brand new tranche, can be printed within the Federal Register. However the listing contains China Building Expertise and China Worldwide Engineering Consulting, along with Semiconductor Manufacturing Worldwide (SMIC) and China Nationwide Offshore Oil (CNOOC), in accordance with the doc and three sources.
SMIC mentioned it continued “to have interaction constructively and brazenly with the US authorities” and that its services and products have been solely for civilian and business use. “The Firm has no relationship with the Chinese language navy and doesn’t manufacture for any navy end-users or end-uses.”
The DOD, the Chinese language embassy in Washington and CNOOC didn’t instantly reply to requests for remark.
SMIC, which depends closely on tools from US suppliers, was already in Washington’s crosshairs. In September, the US Commerce Division knowledgeable some companies that they should acquire a license earlier than supplying items and providers to SMIC after concluding there was an “unacceptable threat” that tools provided to it might be used for navy functions.
© Thomson Reuters 2020
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