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Xiaomi, CNOOC, Comac: Chinese companies slapped with new United States restrictions

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Xiaomi, CNOOC, Comac: Chinese companies slapped with new United States restrictions

CNOOC will now join a blacklist that requires firms to be granted a special licence before they can receive exports of high-tech items from U.S. suppliers.

Nine Chinese firms have been added to the Pentagon's blacklist of alleged ties to the Chinese military, including phone maker Xiaomi.

Cnooc is aware of the USA decision and will continue to monitor the progress, the company said in an emailed statement.

The moves are the latest in a slew of actions the Trump administration has taken against Beijing in the weeks leading up to Biden's inauguration, and could complicate US-China relations for the incoming government.

While Cnooc has been embroiled in territorial disputes for drilling near Vietnam and the Philippines, most of its actual production in the South China Sea is much closer to home.

Under the authority of Section 1237 of the National Defense Authorization Act, Xiaomi will not be able to acquire goods and services from US vendors - many Chinese companies are already subject to this restriction being placed on the Commerce Department's Entity List.

Xiaomi shares trading in the United States dropped as much as 14% on Thursday while in Hong Kong the shares fell more than 11% on Friday.

Earlier last month, when US Govt blacklisted 60 Chinese companies due to the same reason, one of the companies was China National Offshore Oil Corp.

The United States accused CNOOC of bullying in the disputed South China Sea.

The moves come just days before Trump steps down and President-elect Joe Biden takes office. Trump signed an order in November barring American investments in Chinese firms owned or controlled by the military in a bid to pressure Beijing over what it views as abusive business practices. "The Company is reviewing the potential consequences of this to develop a fuller".

"CNOOC acts as a bully for the People's Liberation Army to intimidate China's neighbors, and the Chinese military continues to benefit from government civil-military fusion policies for malign purposes", Ross said. The company, which vies with Huawei Technologies Co. for the title of China's No. 1 mobile device brand, also makes electric scooters, earphones and smart rice cookers. (CNOOC) on the entity list, an economic blacklist that forbids USA firms from exporting or transferring technology with the companies named unless permission has been obtained from the US government. The company's operations and access to technology remain unaffected in the short term, but investors being forced to pull out could certainly hamper the company in the medium term. We'll be sure to keep you updated either way, though.

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