Trump Administration Adds China’s Biggest Chip Maker To Trade Blacklist For Alleged Military Ties

Topline

The U.S. Department of Defense added China’s biggest chipmaker, SMIC and major oil firm CNOOC to a trade blacklist due to their alleged ties to the country’s military, continuing the outgoing Trump administration’s crackdown on Chinese firms.

Key Facts

Late on Thursday, the Department of Defense announced a total of four additions to its blacklist also including China Construction Technology Co Ltd and China International Engineering Consulting Corp.

SMIC, which is China’s biggest semiconductor maker, relies heavily on equipment and software from U.S. suppliers to design and manufacture its chips.

In a stock exchange filing on Friday the Chinese chipmaker said that it was aware of the action and was still evaluating the potential fallout.

Crucial Quote

In a Wall Street Journal

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Trump bans Americans from investing in Chinese firms he claims have ties to the military

President Donald Trump has signed an executive order banning Americans from investing in Chinese firms that the administration says are owned or controlled by the Chinese military.



Donald Trump wearing a suit and tie: U.S. President Donald Trump leads a meeting with the White House Coronavirus Task Force and pharmaceutical executives in Cabinet Room of the White House on March 2, 2020 in Washington, DC.


© Drew Angerer/Getty Images
U.S. President Donald Trump leads a meeting with the White House Coronavirus Task Force and pharmaceutical executives in Cabinet Room of the White House on March 2, 2020 in Washington, DC.

The order applies to 31 Chinese companies which it says “enable the development and modernization” of China’s military and “directly threaten” US security.

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Smartphone maker Huawei and Hikvision, one of the world’s largest manufacturers and suppliers of video surveillance equipment, are among the blacklisted companies. Some of the other companies listed, including China Telecom and China Mobile, trade on the New York Stock Exchange.

Trump’s order bans US investors from owning or trading any securities that originate or are exposed to those firms. This includes pension

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