China phone maker Xiaomi, oil giant CNOOC added to U.S. 'blacklist'

CGTN

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A Xiaomi outlet in Xuchang, central China's Henan Province, January 1, 2021. /CFP

Nine Chinese firms including smartphone maker Xiaomi were added to a blacklist of alleged Chinese military companies, according to a statement released by the U.S. Defense Department on Thursday.

State-owned plane maker Commercial Aircraft Corporation of China, HNA group subsidiary Grand China Air, Beijing Zhongguancun DevelopmentInvestment Center, Shanghai-based semiconductor equipment maker Advanced Micro-Fabrication Equipment Inc., as well as Guangdong-based GOWIN Semiconductor Corp. are also on the list.

The companies will be subject to a renewed U.S. investment

ban

signed by President Donald Trump on Wednesday, which requests American investors to divest their holdings of the blacklisted firms by November 11, 2021.

Trump signed a previous version of the executive order banning Americans from investing in these Chinese firms in November 2020.

Xiaomi shares plunged over 10 percent in Hong Kong trading on Friday morning following the news.

In response to the blacklisting, the phone maker said the company has always adhered to relevant laws and regulations in places they operate. It also clarified that its services and products are used for civilian or commercial purposes, and is not owned or controlled by the Chinese military nor is it a Chinese military company as defined under U.S. law.

The company said it will take appropriate measures to protect the interests of the company and shareholders and is reviewing the potential consequences of the incident.

In addition, the U.S. Commerce Department on Thursday also added Chinese National Offshore Oil Corporation (CNOOC) to the "entity list" and Beijing-based Skyrizon Aviation to the "military end-user list."

CNOOC, the largest offshore oil and gas producer in China, has cooperated closely with major U.S. companies including ExxonMobil, NOV and Baker Hughes.

China's Foreign Ministry spokesperson Zhao Lijian said Thursday that China firmly opposes U.S. actions that politicize economic and trade issues and U.S. abuse of state power under the guise of national security to suppress Chinese companies on groundless terms.

China's position on relevant issues is consistent and clear. The Chinese government has always encouraged Chinese enterprises to carry out economic cooperation in accordance with market principles, international rules and regulations. The United States should respect the principles of market economy, abide by international economic and trade rules, and provide an open, fair and non-discriminatory business environment for companies from various countries, including Chinese companies, Zhao added.