The Ministry of Defense said in a statement that it was “determined to highlight and confront” the relationship between the Chinese army and companies that “appear to be civilian entities” but support the army with advanced technology and expertise.
The Chinese Foreign Ministry did not immediately respond to a request for comment from CNN Business. But Beijing had previously criticized Washington for its actions and said it would take “necessary measures” to protect the interests of Chinese companies.
“CNOOC is acting as a bully for the People’s Liberation Army to intimidate China’s neighbors,” Commerce Minister Wilbur Ross said in a statement, referring to the country’s military. His agency claimed that CNOOC was harassing and threatening offshore oil and gas exploration in the South China Sea by other countries, such as Vietnam.
Xiaomi denied that the Chinese military owned or controlled it in the stock exchange file.
The company asserts that it is not owned, controlled or affiliated with the Chinese army, and is not a designated “Chinese Communist Military Corporation” under [National Defense Authorization Act]The statement said.
Xiaomi added that it would take “appropriate measures” to protect the interests of the company and its shareholders.
CNN Business also contacted CNOOC, Comac and other companies adding to the US government listings on Thursday, but has yet to receive a response.
These moves are the latest in a series of actions taken by the Trump administration against Beijing in the weeks leading up to Biden’s inauguration, and could complicate relations between the United States and China for the next government.
“The new administration will likely not be aggressive, but it may also not be as ready to roll back Trump-era policies as many hope,” Geoffrey Haley, Oanda’s chief market analyst for the Asia Pacific region, wrote in a research note on Friday.
Hang Seng Tech Index, which tracks the performance of Chinese technology Stocks, up 1.4%. Xiaomi was the worst performer on the benchmark on Friday.
Citi analysts said in a research report on Friday that the ban would cause “immediate selling pressure” on Xiaomi’s stock, but would have little impact on the company’s operations.
Before Thursday, the Pentagon had already added 35 Chinese companies to its military list, including chip maker SMIC and tech company Huawei. The Ministry of Commerce also imposed restrictions on several companies. (SMIC has denied having a relationship with the Chinese military, while Huawei has denied various US claims that it is a national security risk.)
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