[co-author: Stephanie Cheung]
INTRODUCTION
Following our recent Client Alert published in October 2020 on the release of the Section 5(a) Report under the Hong Kong Autonomy Act of 2020 (“
HKAA”), there have now been some further updates in relation to U.S. sanctions affecting parties in Hong Kong and China which we discuss below.
TRUMP ADMINISTRATION IDENTIFIES FOUR ADDITIONAL CHINESE ENTITIES AS MILITARY COMPANIES
CCMC”). This list is required to be compiled and reported to the U.S. Congress. In addition to the companies already on the list from designations in June and August of this year, the four companies added in December are (i) high-tech state-owned enterprise group, China Construction Technology Co. Ltd. (CCTC); (ii) an engineering consulting business, China International Engineering Consulting Corp. (CIECC); (iii) China’s top chipmaker, Semiconductor Manufacturing International Corp. (SMIC); and (iv) China’s largest offshore oil and gas producer, China Natio
Stock Futures Waver as Stimulus Talks Continue
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Daily Mirror - U S to blacklist dozens of Chinese firms including SMIC
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Chinese chip maker
Semiconductor Manufacturing International Corp. was among another batch of Chinese companies blacklisted in the U.S. on Friday, the latest in a flurry of moves targeting China in the last weeks of the Trump administration.
The intensifying strategic rivalry with China has played out most visibly in technology specifically semiconductors. This move targets Semiconductor Manufacturing International Corp., or SMIC, (ticker: 981.HongKong), the company central to China’s efforts to bolster its chip capability and reduce its reliance on the U.S.
The Commerce Department added SMIC to its so-called entity list, cutting off the company from U.S. technology that’s needed to produce advanced chips, unless suppliers sought a license. The department cited national security concerns and what the U.S. says is SMIC’s involvement with entities linked to the Chinese military.
The Shanghai, China skyline at night. Image: Li Yang
The US is set to add dozens of Chinese companies, including the country’s top chip maker, SMIC, to a trade blacklist on Friday, two people familiar with the matter said.
The move, which has not previously been reported, is seen as the latest in US President Donald Trump’s effort to cement his tough-on-China legacy. It comes just weeks before Democratic President-elect Joe Biden is set to take office on 20 January.
In total, the US is expected to add around 80 additional companies and affiliates to the so-called Entity List, nearly all of them Chinese.