Xiaomi, CNOOC, Comac: Chinese companies slapped with new US restrictions

The US Department of Defense has added nine Chinese companies, including Xiaomi, to the list of companies the agency claims to be owned or controlled by the Chinese military. Businesses on the list are subject to severe restrictions, including the American investment ban.

It’s also worrisome news for Xiaomi, which has recently outpaced it. An apple (AAPL) It will become the world’s third-largest smartphone maker, according to marketing intelligence firm IDC.Its shares fell 10 percent as of Friday morning in Hong Kong.

China’s foreign ministry did not immediately respond to a request for comment from CNN Business, but Beijing had previously criticized Washington for its action and said it would take. “Necessary measures” to protect the interests of Chinese companies.

“CNOOC acts to bully the People’s Liberation Army to intimidate China’s neighbors,” Commerce Secretary Wilbur Ross said in a statement, referring to the country’s military. His agency claimed the CNOOC had disrupted and threatened offshore oil and gas exploration in the South China Sea.

CNN Business contacted Xiaomi, CNOOC, Comac and other companies adding to the list of the US government on Thursday. But still haven’t received an answer

The move is the latest in action the Trump administration has taken against Beijing in weeks leading up to Biden’s inauguration and could further complicate U.S.-China relations.

Earlier Thursday, the Pentagon added 35 Chinese companies to the military’s list, including chipmaker SMIC and technology company Huawei.The Commerce Department also imposed restrictions on several companies (SMIC denied having ties to the Chinese military. While Huawei has denied US allegations that pose a national security risk)