United States puts China-based SMIC chipmaker to the Entity List

The Trump administration has confirmed that two major Chinese companies’ chipset maker SMIC and oil producer CNOOC have been added to the trade blacklist, alleging them to be Chinese military companies.

The Department of Defense has designated four companies for being owned or controlled by the People’s Liberation Army.

The list includes Semiconductor Manufacturing International Corp (SMIC), China National Offshore Oil Corp (CNOOC), China Construction Technology Co. Ltd, and China International Engineering Consulting Corp.

With the addition of these four companies to the trade blacklist of the United States, there are now 35 countries on the list.

Companies on the list are striped from procuring or using technologies or goods made in the United States.

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Though, blocking these companies from trading with US-based firms also hurts the suppliers, in this case, the US companies, as several of the companies highlighted in their request to the government to allow them to continue doing business with Huawei after the Chinese giant was added to the Entity List in May last year.