The Chinese state oil group CNOOC is blacklisted by the US government because the company would be ‘controlled by the Chinese army’. It also includes three other Chinese companies, including the large chip manufacturer SMIC.
This means that companies can face US sanctions. News agency Reuters had already reported that CNOOC was threatening to be blacklisted from the Pentagon. This has already been the case, among others, for the great Technology Group Huawei Technologies because of alleged close ties with the Chinese army and risks of espionage for the Chinese government. American companies are not now allowed to sell sensitive technology to Huawei. A total of 35 Chinese companies have been banned by Washington.
Recently, President Donald Trump banned American investment in Chinese companies owned by the military or controlled by the army. Trump tries to pull the reins in the last few weeks of his presidency in the hard line towards China. His successor, Joe Biden, is also being put on the spot when it comes to tough action by China.
This week, the US Congress agreed to legislation to tighten up the accounting rules for Chinese companies listed in the US. If access is not given to American regulators, those companies, such as web store Alibaba, could lose their listing on Wall Street.
CNOOC, an abbreviation for China National Offshore Oil Corporation, carries out deep-sea exploration in the South China Sea. Territorial issues have been going on there for years. The group also has oil and gas fields in the US and cooperates with the US ExxonMobil. The company also uses American technology and equipment.
About the author: John Campbell
John Campbell is the godfather of Polimedia and the oldest author from the whole team. His occasional guidance is crucial for everyone he advises.