Trump Administration Add China’s SMIC, CNOOC to Export Blacklist

The Trump administration is poised to add China’s top chipmaker SMIC and national offshore oil and gas producer CNOOC to a blacklist of alleged Chinese military companies, according to a document and sources, curbing their access to U.S. investors and escalating tensions with Beijing weeks before President-elect Joe Biden takes office.

Reuters reported earlier this month that the Department of Defense was planning to designate four more Chinese companies as owned or controlled by the Chinese military, bringing the number of Chinese companies affected to 35.

It was unclear exactly when the new designations would take effect. China Construction Technology Co. Ltd. and China International Engineering Consulting Corp. will also reportedly be added to the list. The designation would make it far more difficult for U.S. companies to export technology to the four Chinese companies. Huawei Technologies Co. was added to the list in May.
Despite oil price remains strong recently, it is not enough to support CNOOC stock price. CNOOC (HK.883) drops more than 13% today while SMIC (HK.981) fell about 3%.