The Trump administration has confirmed that two major Chinese companies, chipset manufacturer SMIC and oil producer CNOOC, have been included in the trade blacklist, claiming that they are Chinese military companies.
The Ministry of National Defense has designated four companies owned or controlled by the PLA.
The list includes Semiconductor Manufacturing International Corporation (SMIC), China National Offshore Oil Corporation (CNOOC), China State Construction Technology Co., Ltd. and China International Engineering Consulting Corporation.
After adding these four companies to the US trade blacklist, there are now 35 countries on the list.
Companies on the list are prohibited from purchasing or using technologies or products manufactured in the United States.
A few months ago, it was reported that the Pentagon was in discussions to determine the ID to add SMIC to the Ministry of Commerce entity list. SMIC is one of the largest companies in the field of chip manufacturing in China.
Semiconductor Manufacturing International Corporation (SMIC) relies heavily on the United States to supply its products, and its blacklisting will put the company in trouble and will also hinder China’s plans to upgrade its chipset manufacturing technology.
However, preventing these companies from trading with U.S. companies also hurts their suppliers, and in this case, it also hurts U.S. companies, because several of them emphasized in their requests to the government to allow them to continue with the Chinese giants and Huawei, that was added to the “entity list” in May last year.