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Be the first with the news that moves the market- CNOOC (CNU) has said it is “assessing the impact” after it was added to the U.S. Department of Defense’s blacklist of Chinese companies
- It’s one of four companies to join the list, accused of having ties to the Chinese military
- The other companies include China Construction Technology, China International Engineering Consulting and Semiconductor Manufacturing International
- An executive order signed by U.S. President Donald Trump means that American investors would be unable to to trade securities in these companies
- CNOOC is currently suspended from trading and was last valued at C$131.33 per share on December 2
CNOOC (CNU) has said it is “assessing the impact” after it was added to the United States’ blacklist of Chinese companies.
The company, formally known as China National Offshore Oil Corp, is one of four to join the U.S. Department of Defense blacklist, and is accused of having ties to the Chinese military.
The other companies include China Construction Technology, China International Engineering Consulting and Semiconductor Manufacturing International, and bring the total number of blacklisted companies to 35.
While there are no immediate penalties, an executive order signed by U.S. President Donald Trump on November 12, 2020, prohibits Americans from trading securities in these companies, including derivatives, from November next year.
In a statement on its website, CNOOC said it was “shocked and regretful” at being added to the list, and that the decision was based on “false and inaccurate information.”
In Beijing, a foreign ministry spokeswoman Hua Chunying told reporters that China was opposed to efforts by the U.S. to suppress its companies, adding that the move counters principles of market competition.
“The U.S. should stop abusing national power and national security concepts to suppress foreign companies,” she said.
The blacklisting of these companies is broadly considered to be a last-ditch attempt by the outgoing U.S. president to cement his tough-on-China stance before he leaves office, and to box President-Elect Joe Biden into a similarly hardline position.
It’s also thought to be an effort by Washington to curb what it perceives as Beijing’s efforts to enlist corporations in an attempt to harness emerging civilian technologies for military purposes.
CNOOC is currently suspended from trading and was last valued at C$131.33 per share on December 2.
