‘IT AIN’T OVER ’till the fat lady sings’, as they say in the United States. With a few days still to go until US President Donald Trump leaves office, there is still time for more measures to be taken against China.
Among his latest parting shots, the US Department of Defence on January 14 added nine more names to its list of companies with alleged links to the People’s Liberation Army. The additions include phone maker Xiaomi and the state-owned aerospace manufacturer, Commercial Aircraft Company of China (COMAC).
One consequence for the blacklisted companies is that US investors will be banned from buying their securities and will have to divest holdings by November. The companies also face delisting by US stock exchanges. Beijing is encouraging its companies to do that voluntarily and use Hong Kong for their primary listing.
Separately, the US Commerce Department added the state-owned oil giant China National Offshore Oil Corp. (CNOOC) to the Entity List, which means that US companies will need special licences to do business with it. Xiaomi may follow suit.
This Bystander suspects there will be more strikes at Chinese companies before Trump is out the door.