The United States has imposed new restrictions on Chinese companies and gave the government more power to control imports of technology from the country, while the Trump administration sought to increase pressure on Beijing on the last day of its tenure.
The last-minute chaos of activity included adding companies including state-controlled China National Offshore Oil Corporation and mobile phone maker Xiaomi to the government blacklist and empower the U.S. Department of Commerce to block imports from Countries that are considered a security threat
Commerce on Thursday morning put Cnooc on a “corporate list,”; meaning the US group would not be able to export products or technology to the company without a hard-to-obtain license.
And just hours later, the Pentagon positioned Xiaomi, which in November overtook Apple as the world’s third-largest smartphone maker by unit sold – and eight other businesses in List of companies associated with the Chinese Armed Forces
According to an executive order signed by President Donald Trump in November, Americans were barred from investing in companies on that list. The move means that U.S. investors will not be able to buy Xiaomi’s securities and will eventually have to sell shares they already own.
The focus on China before Joe Biden takes office on Jan. 20 comes from the end of the administration that has made Beijing’s rising resistance at the center of economic and foreign policy.
US Commerce Secretary Wilbur Ross said Knook was a “bully” for the Chinese military.
The Commerce Department said Cnooc had “threatened and threatened multiple offshore oil and gas exploration and extraction” operations in the South China Sea to increase political risks, including Vietnam, which has had a long dispute with China over oil fields.
“China’s reckless and unbiased actions in the South China Sea and its proactive push to acquire intellectual property and sensitive technology for its military efforts are a threat to the country’s national security. US and the security of the international community
Chinese President Xi Jinping in 2015 promised US President Barack Obama at the time that China would not deploy troops in disputed areas in the South China Sea even if it tried to reclaim land for construction.
Over the past few years, the United States has made other Chinese companies on the list of legal entities, including telecom equipment provider Huawei and Semiconductor Manufacturing International Corporation, the latest chip maker, the company has placed DJI, the world’s largest commercial drone maker, blacklisted.
Cnooc is China’s third-largest oil company and under federal control, making it more symbolic than the anti-private movement.
But it is not the first government organization to be targeted by the Trump administration, which includes China’s three biggest telecoms companies, in a military-related ban.
Trading in Xiaomi’s shares in the US fell as much as 14 percent on news it was added to the list of Pentagon companies with ties to the Chinese military.The other companies added include the Commercial Aircraft Corporation of China. And China National Aviation Holding
U.S. defense and state agencies have pushed to include three of China’s biggest technology companies – Alibaba, Tencent and Baidu – on the Pentagon’s list. But Treasury Secretary Steven Mnuchin triumphed in an internal battle, arguing that it would endanger U.S. investors.
As with the new blacklist, the Trump administration on Thursday said it had outlined new rules that would allow the Commerce Department to block Americans from importing some sensitive technology from China and its opponents. Elsewhere across the US
The rule applies to six types of software and hardware, from products used in critical infrastructure and telecommunication networks to artificial intelligence and quantum computers. It can also be used with apps that collect user data or, for example, drones and network surveillance cameras that use cloud services to store their data.
In addition, on Thursday, the U.S. International Development Finance Corporation struck a deal to help Ecuador repay billions of dollars of loans to China in exchange for exempting Chinese firms from the telecommunications network.
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