U.S. blacklists Xiaomi and Cnooc with surge in action to counter China

As the Trump administration competes to increase pressure on Beijing on its final day in office, the United States imposes new restrictions on Chinese companies and gives the federal government more power to curb imports of technology from the country. Gave.

At the last minute, companies such as the state-owned China National Offshore Oil Corporation and mobile phone maker Xiaomi have been added to the government’s blacklist, empowering the U.S. Department of Commerce to block imports from countries that are considered a security threat. It included giving.

On Thursday morning, the Department of Commerce added Cnooc to its “entity list.” This means that the US group cannot export its products and technologies to the company without a license that is difficult to obtain.

And just a few hours later, the Pentagon put Xiaomi (the world’s third-largest smartphone maker in sales over Apple in November) and eight other companies on the list of companies allegedly associated with the Chinese military. Placed.

Following an executive order signed by President Donald Trump in November, Americans have been banned from investing in companies on the list. This move means that US investors will no longer be able to buy Xiaomi securities and will eventually have to sell the securities they already own.

The focus on China in the days before Joe Biden’s inauguration on January 20 comes at the end of the administration, which has made countering the rise of Beijing the centerpiece of its economic and foreign policy.

Cnooc acted as a “bullyer” to help Chinese troops threaten Chinese neighbors in the South China Sea, said US Secretary of Commerce Wilbur Ross.

The Ministry of Commerce said Cnooc “repeatedly harassed and threatened offshore oil and gas exploration and mining” in the South China Sea to increase political risk, including Vietnam, which has long been in conflict with China over oil resources.

“China’s reckless and militant actions in the South China Sea and its aggressive push to acquire sensitive intellectual property and technology for militarization efforts are the national security of the United States and the international community. It’s a security threat, “Ross said.

China’s Xi Jinping Jintao 2015, Obama Barack was the President of the United States at that time, in spite of the effort to develop the land for construction, China that is not militarization of the conflict areas of the South China Sea Promised.

Over the past two years, the United States has added other Chinese companies to its entity list, including telecommunications equipment provider Huawei and chip maker Semiconductor Manufacturing International Corporation. Recently, DJI, the world’s largest manufacturer of commercial drones, has been blacklisted.

CNOOC is China’s third-largest oil company, controlled by the central government, and is more symbolic than the move against private groups.

However, this is not the first state-owned enterprise targeted by the Trump administration. The Trump administration has included three major Chinese telecommunications companies in its military ban.

Xiaomi’s US stock trading fell 14% on news that it was added to the Pentagon’s list of allegedly associated Chinese troops. Other companies added included a Chinese civil aviation company and China National Aviation Corporation.

The Pentagon and the State Department have also called for three of China’s largest tech companies (Alibaba, Tencent, and Baidu) to be on the Pentagon’s list. But Treasury Secretary Steven Mnuchin won the internal battle, claiming it would hurt US investors.

In addition to the new blacklist, the Trump administration on Thursday said the Commerce Department has finalized new rules that will allow Americans to prevent Americans from importing sensitive technology from China and other U.S. enemies. ..

This rule applies to six categories of software and hardware, from products used in critical infrastructure and telecommunications networks to artificial intelligence and quantum computing. It can also be applied to apps that collect user data, drones and network surveillance cameras that store data using cloud services.

Also on Thursday, the US International Development Finance Corporation signed a deal to help Ecuador repay billions of dollars in loans to China in exchange for removing Chinese companies from its telecommunications network.

Follow Demetri Sevastopulo twitter

Video: What President Biden Means for the US-China Technology War

U.S. blacklists Xiaomi and Cnooc with surge in action to counter China

Source link U.S. blacklists Xiaomi and Cnooc with surge in action to counter China

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