The U.S. government has blacklisted Chinese smartphone maker Xiaomi Corp. and China’s third-largest national oil company for alleged military links, heaping pressure on Beijing in President Donald Trump’s last week in office. The Department of Defence added nine companies to its list of Chinese companies with military links, including Xiaomi and state-owned plane manufacturer Commercial Aircraft Corp. of China (Comac).
U.S. investors will have to divest their stakes in Chinese companies on the military list by November this year, according to an executive order signed by Trump in November. The Department had in June 2020 released to Congress, its initial list of companies that are deemed to have military ties while operating as civilian firms. It added to the list more companies in December 2020. With Thursday’s updated list there are now over 40 companies that have been blacklisted. In November last year Trump had signed an executive order that prohibited Americans from investing in the blacklisted firms. Owners of shares of these companies must get rid of them by November 11, 2021.
Apart from Xiami Corpration, the additional firms blacklisted include Advanced Micro-Fabrication Equipment Inc. (AMEC), Luokong Technology Corporation (LKCO), Beijing Zhongguancun Development Investment Center, GOWIN Semiconductor Corp, Grand China Air Company (GCAC), Global Tone Communication Technology (GTCOM), China National Aviation Holding Co. Ltd. (CNAH) and Commercial Aircraft Corporation of China (COMAC).