China Underground > China Finance > The Trump administration imposes new sanctions on Chinese officials and companies including Xiaomi and CNOOC

The Trump administration imposes new sanctions on Chinese officials and companies including Xiaomi and CNOOC

The outgoing US administration has imposed a new round of sanctions on officials and companies for alleged misdeeds in the South China Sea, and an investment ban on nine other companies.

Managers of large state companies, Chinese Communist Party and military officers, and China National Offshore Oil Corporation (CNOOC) will face a new set of restrictions for allegedly using coercion against rival states in the South China Sea.

US officials said the new restrictions on CNOOC will not apply to crude fuels, refined fuels, and liquid natural gas and will not apply to existing joint ventures with CNOOCs that do not operate in the South China Sea.

Among the companies accused of having military ties with the Chinese army are planemaker Comac and Xiaomi Corp.

These companies will be subject to new investment bans forcing US investors to dispose of holdings in listed companies by November 11, 2021.

The Commerce Department accused the CNOOC of threatening other nations in the region with regards to offshore oil and gas exploration and extraction in the South China Sea, including Vietnam.

Chinese foreign minister spokesman Zhao Lijian on Friday said the Chinese government would strongly oppose the new sanctions.

Biden’s transition team did not immediately respond to a request for comment.

Shares of Xiaomi closed 10% on Friday, compared with a 0.4% drop in the Hang Seng Index, while shares of CNOOC Ltd fell 1.1%.

“The United States stands with Southeast Asian claimant states seeking to defend their sovereign rights and interests, consistent with international law,” Secretary of State Mike Pompeo said.

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