Trump administration draws final strikes at Chinese companies
The administration of Donald Trump is going to take another swipe at China as well as its largest companies on Thursday, imposing restrictions on officials as well as firms for unauthorized operations in the South China Sea and manipulating an expenditure block on 9 more companies. The decision will further gain tensions with China, the strategic contender of Washington in Asia, days before president-elect Joe Biden joins office on Wednesday. But his transition team did not respond to a comment.
Several companies’ executives, leaders of the Chinese Communist Party, and military, along with famous oil giant CNOOC will face new limitations for reportedly using coercion against states with the rival South China Sea insists. The senior officials of the United States said that the new limitations for CNOOC will not applicable to liquid natural gas, crude oil as well as refined fuels and don’t apply to existing joint ventures along with CNOOC that do not work in the South China Sea.
As per the source, 9 Chinese companies were included in the Pentagon’s list of firms with rumored ties to the military of China, involving planemaker Comac as well as mobile phone maker Xiaomi. Those firms will be intended to a new American investment ban which enforces the investors of the United States to relieve holdings of the blacklisted companies by 11th of November, 2021.
Xiaomi shares fell over eight percent in initial trading on Friday, against a 0.2 percent decline in the index of Hang Seng, while, the shares of CNOOC gained around one percent. In its response, the embassy of China spoke about 7th January comments of the Foreign Ministry blaming Washington of fixing political as well as ideological labels on economic as well as trade problems and also using its state power to eliminate foreign firms, under the excuse of national security. The United States has criticized extensive territorial claims of China in the South China Sea, which is the resource-rich zone that is also a strategical trade path.