Business

Trump plans to add two Chinese firms to the ban list

The Trump administration is preparing to add China’s largest chip maker SMIC and national oil and gas producer CNOOC to the ban list that includes Chinese military companies, which will limit their access to American investors and increase tension with the “Beijing” government, weeks before the president-elect takes office. Joe Biden for the presidency.

The Ministry of Defense was planning to identify four other Chinese companies as affiliated with the Chinese army, to increase the number of Chinese companies affected by the ban to 35, and the government is also preparing to ban 89 Chinese airlines and several companies linked to the army. These decisions seek to consolidate the policies of Republican US President Donald Trump. With China, he has put the new Democratic President, Joe Biden, in tough positions with the Beijing government, amid bipartisan views in the US Senate against China.

In September, the US Department of Commerce imposed restrictions on SMIC exports after what it described as an “unacceptable risk” that equipment supplied to the company was being used for military purposes.

This month, the White House issued an executive order to prevent American investors from dealing with companies included in the ban list starting from November 2021, which will increase the effectiveness of the ban, but according to experts, this decision will not significantly affect companies because of its limited scope and the lack of knowledge of the position of the Biden administration. In addition to the small amount of US funding for Chinese companies, Congress primarily seeks to limit access to the US market for Chinese companies that are not subject to laws that include US competitors, even if it turns out to be anti-Wall Street.

Related Articles

Back to top button