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

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 1
0 percent as of Friday morning in Hong Kong.

The defense ministry said in a statement. “Striving to focus and countering” the relationship between China’s military and companies that “looks like a civilian agency” but supports the military with advanced technology and expertise.

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.

The U.S. Department of Commerce also puts CNOOC, China’s largest offshore oil producer, on another list cut off from American supply and technology.The company is already on the Pentagon’s list.CNOOC’s shares have moved slightly in Hong Kong.

“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

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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)

The New York Stock Exchange also announced last week that it would delist shares of three Chinese telecommunications companies in line with US President Donald Trump’s executive order banning American investment in certain companies.

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