Analysts expected the current U.S. government to continue China until the end of its term, with the goal of strengthening President Donald Trump’s approach to Beijing and making it more difficult to reverse Biden’s direction.
“The rush of Chinese hardliners to provoke action against China January 20 cut short the already unsettled political process. “said Michael Hirson, practice manager for Eurasia Group China and Northeast Asia. January 20 is Biden’s inauguration day.
According to Hirson, there are no clear criteria for military affiliates. but the Trump administration appears to have a broad interpretation of companies that directly or indirectly support China’s military modernization.
“This is a particularly wide network for Chinese state-owned enterprises,” he said.
Beijing on Friday protested against the inclusion of CNOOC, SMIC and other companies on the Ministry of Defense list and called on the United States to stop abusing the concept of national security.
“China strongly rejects the United States’ unwarranted repression of Chinese companies,” Chinese State Department spokesman Hua Chunying told reporters.
Targeting SMIC is at the heart of Beijing’s technological ambitions. China is catching up to the West when it comes to chip production and has allocated billions of dollars to the industry in the hopes of building a home-based business capable of producing cutting-edge chips.
The CNOOC did not respond immediately to the request for an opinion.
U.S. investors are prohibited from owning or trading any securities that originate from or are exposed to such companies. Investors must divest from companies by November 2021.
And Trump still has more ammunition could shoot at Chinese companies.
Shirley Yu, a hospitality fellow at the London School of Economics and the founder of a company that assesses strategy, business and political risks, Trump will “almost certainly” sign the bill before his term expires. Companies working in China.
“With the unanimous support of Congress, this decision will be extremely difficult for the next administration to reverse,” he added.
Which means “Trump can once again unilaterally raise tariffs on Chinese goods … [and] it imposes higher punitive duties, “he said.
Chinese technology giants could continue to be put on a list that prevents U.S. companies from exporting goods to them without first obtaining permission to do so, Hirson says.
“Some in the administration have sought to add one or more such companies to the Department of Commerce’s entity list or to take other management measures toward these companies,” he said.
Companies listed on the entity list, which are separate from the Department of Defense list, are essentially separate from U.S. supply and technology.