Beijing; The US government has stepped up a rivalry with Beijing over protection by adding China’s biggest processor chip maker and a state-owned oil giant to a blacklist that restricts access to American technology and investment. Thursday’s statement counts to measures taken by President Donald Trump against China since failing his re-election proposal on November 3. Political critics have said Trump was likely to take additional effort before President-elect Joe Biden takes office on January 20.
The Pentagon added four companies including Semiconductor Manufacturing International Corp. and China National Offshore Oil Corp. to a list of entities considered to be part of steps to update the ruling Communist Party’s military wing, the People’s Liberation Army. That extends the total number of companies on the blacklist to 35.SMIC recreates a top role in the ruling party’s measure to decline reliance on the US and other foreign technology by producing Chinese suppliers of processor chips and other elements.
China’s government has slammed such constraints as a misuse of national safety arguments to impediment novice Chinese competitors in technology and other areas. That has taken on tremendous speed after Washington barred access to American chips and other technology for telecom supplies giant Huawei Technologies Ltd. and levied curbs on other Chinese customers. The White House also has stopped the use of US technology by global merchants to make chips for Huawei.
CNOOC is the smallest of China’s three main state-owned oil producers. Political analysts expect little change in policy under Biden due to widespread frustration with China’s trade and human rights records and charges of spying and technology stealing. The 2.3 million-member PLA is one of the world’s biggest and best-armed militaries. It is expanding heavily to generate nuclear submarines, stealth fighters, ballistic missiles, and other advanced weapons.
The Pentagon’s first list of 20 companies deemed to be PLA-linked in June included Huawei and video surveillance provider HikVision Digital Technology Co. Both say they never have taken part in the military-related analysis. Also mentioned by the Pentagon in earlier lists are state-owned phone carriers China Telecom Corp. and China Unicom Ltd. and petrochemical, construction, aerospace, rocketry, shipbuilding, and nuclear power equipment companies.