Trump to crack down on “blacklist” subsidiaries

Trump to crack down on "blacklist" subsidiaries
On December 28, local time, the trump government took another step to blacklist 35 Chinese enterprises as “controlled by the Chinese military” and put their subsidiaries in the scope of “suppression”.
Reuters reported that on the same day, the U.S. Treasury Department strengthened its guidelines on prohibiting Americans from investing in so-called “Chinese military related” enterprises, which clarified the controversial points of the earlier administrative order, saying that the administrative order will apply to exchange traded funds, index funds and Chinese enterprise subsidiaries listed as “Chinese military owned or controlled”.
Black hands again! Trump government to “blacklist” subsidiary of Chinese enterprises also included in the scope of suppression
In November, the trump Administration issued an executive order, stipulating that from November 2021, US investors will be prohibited from purchasing the “blacklisted” Chinese enterprise securities. In response to this move, there was a heated debate within the trump administration.
Earlier, some media reported that the US Treasury Department is seeking to exclude Chinese subsidiaries from the scope of the executive order. However, the latest report by Reuters quoted a source as saying that both the US State Department and the US Department of defense have rejected the proposal to weaken the executive order.
The US Treasury Department clearly pointed out in the “frequently asked questions” on its official website on the 28th that the executive order applies to any Chinese enterprise subsidiary “controlled by the Chinese military” that is publicly listed by the Treasury Department, and intends to include companies with more than 50% shares held by “controlled by the Chinese military” on the list.
At present, the total number of Chinese enterprises on the “blacklist” of the US Department of defense has reached 35, including Huawei, Hikvision, SMIC international and other Chinese enterprises. The US Department of defense also said in a statement that it would continue to update the “blacklist” under “appropriate circumstances”.
Reuters reported earlier that being blacklisted will not trigger any “sanctions” measures, but the US president can decide whether to implement sanctions, including blocking the property of these enterprises.
Under the executive order of the US government to crack down on Chinese enterprises, some index suppliers have removed some blacklisted Chinese enterprises from their indexes.
At the press conference held at the end of this month, a spokesman for the Chinese Ministry of foreign affairs stated that China’s stance on China’s crackdown on trump had been clarified. China firmly opposes the politicization of Chinese enterprises, and hopes that the United States will provide a fair, just and non discriminatory environment for Chinese enterprises, rather than imposing sanctions or taking discriminatory restrictive measures on Chinese enterprises in the name of national security, which will set obstacles and barriers to normal exchanges and cooperation between China and the United States.
[related reading]
The US listed 59 Chinese enterprises on the “entity list” of export control
A reporter asked: on December 18, the US Department of Commerce announced that 59 Chinese entities would be included in the “entity list” of export control. What is the Ministry’s response?
A: the United States has once again used its national strength to suppress Chinese enterprises. China firmly opposes this and will take necessary measures to resolutely safeguard the legitimate rights and interests of Chinese enterprises.
The United States has generalized national security, continuously abused export control and other measures to continuously suppress other countries’ enterprises, institutions and individuals, seriously damaged the international economic and trade order and free trade rules, and seriously threatened the security of global industrial chain supply chain. It’s not good for China, it’s not good for the United States, it’s not good for the whole world. We once again urge the US side to stop unilateralism and bullying, give fair treatment to enterprises of all countries, including Chinese enterprises, and do more things that are conducive to Sino US economic and trade cooperation and promote the recovery and development of the global economy.
The United States has blacklisted 60 Chinese companies, including Dajiang technology and Sino German technology
As U.S. President trump increased pressure on China in the last weeks of his first term, dozens of Chinese companies were blacklisted by the United States on Friday (December 18), including SMIC international, China’s largest chipmaker, and Shenzhen Dajiang Innovation Technology Co., Ltd., China’s UAV manufacturer.
The U.S. Department of Commerce has released a so-called entity list of 77 companies and their subsidiaries, including 60 Chinese companies.
The U.S. Department of commerce also said that Dajiang, the world’s largest UAV company, will be included in the list together with Sino German technology; China national scientific instruments and materials Co., Ltd. and Guangqi group will also be included in the list.
In a statement, commerce secretary Wilbur Ross said the Department “will not allow advanced U.S. technology to help an increasingly belligerent opponent build an army.”.
Rose said the government may assume that it will refuse the license to prevent SMIC from acquiring technology to produce advanced semiconductors of 10 nanometers or less.
Speaking at the Asia Society on Friday, Chinese State Councilor and foreign minister Wang Yi pointed out that the US sanctions list is expanding and called on Washington to stop “arbitrary crackdown” on Chinese enterprises.
Wang Wenbin, spokesman of China’s foreign ministry, said that if the information you said is true, it will be another example of the United States using national power to suppress Chinese enterprises, which China firmly opposes.
Wang Wenbin pointed out that the politicization of economic and trade issues by the United States violates its consistent market economy and fair competition principle, and violates international trade rules. It not only damages the legitimate rights and interests of Chinese enterprises, but also does not conform to the interests of American enterprises. It will seriously interfere with the normal scientific and technological exchanges and trade exchanges between the two countries and even the world, and damage the global industrial chain, supply chain and value chain. “We urge the US side to stop its wrong behavior of unreasonably suppressing foreign enterprises, and China will continue to take necessary measures to safeguard the legitimate rights and interests of Chinese enterprises.”

1 Response

  1. Lucille says:

    US President Donald Trump has strengthened an executive order banning US companies and individuals from investing in companies suspected of being controlled by the Chinese military, which also applies to subsidiaries of blacklisted companies.

Leave a Reply

Your email address will not be published. Required fields are marked *