Trump administration, Xiaomi, and 9 Chinese companies added blacklist

Input 2021.01.15 06:41

Reuters reported on the 14th (local time) that the US administration of Donald Trump put nine companies, including China’s mobile phone maker Xiaomi, on the “blacklist” list, allegedly related to the Chinese military.

According to Reuters, the U.S. Department of Defense blacklisted nine companies, including Xiaomi, which is suspected of being used for military use in China, and the state-owned aircraft manufacturer China Commercial Aircraft Corporation (COMAC). These companies are subject to a new US investment ban. US investors must sell their stakes in blacklisted Chinese companies by November 11th.

Regarding this, Reuters said, “The expansion of the (Chinese company) blacklist is an effort to solidify the legacy of President Trump’s hard line against China at the end of his term.”

Since enactment in 1999, the US Department of Defense has been able to blacklist companies owned or controlled by the Chinese military. There are 35 companies on the list, including China’s largest semiconductor company SMIC (中芯國際, Zhongxin Guoji) and oil giant China Ocean Petroleum (CNOOC).

Earlier, President Trump signed an executive order in November last year banning American investment in companies affiliated with the Chinese military. At that time, 31 Chinese companies were included in the blacklist, and the US Department of Defense added 4 companies including SMIC and CNOOC, China International Electronic Business Center (CIECC) and China Construction Technology (CCT) in December of last year.

Secretary of State Mike Pompeo also issued a statement on the same day and announced additional sanctions against officials of the CCP and People’s Liberation Army and state-owned executives who were involved in illegal activities related to military bases in the South China Sea. The US has confronted China over the supremacy of the Indo-Pacific.