US blacklists Xiaomi, CNOOC, Skyrizon, raising heat on China

US government has blacklisted Chinese smartphone maker Xiaomi Corp. and China's third-largest national oil company for alleged military links, heaping pressure on Beijing in President Donald Trumps last week in office.

Department of Defense ded nine companies to its list of Chinese companies with military links, including Xiaomi and state-owned plane manufacturer Commercial Aircraft Corp. of China (Comac).

US investors will have to divest ir stakes in Chinese companies on military list by vember this year, according to an executive order signed by Trump in vember.

Xiaomi did t immediately respond to a request for comment.

Xiaomi Corp. overtook Apple Inc. as worlds . 3 smartphone maker by sales in third quarter of 2020, according to data by Gartner. Xiaomis market share has grown as Huaweis sales have suffered after it was blacklisted by U.S. and its smartphones were cut off from essential services from Google.

Separately, Commerce Department put China National Offshore Oil Corp. (COC) on entity list, an ecomic blacklist that forbids U.S. firms from exporting or transferring techlogy with companies named unless permission has been obtained from U.S. government. move comes after about 60 Chinese companies were ded to list in December, including drone maker DJI and semiconductor firm SMIC.

COC has been involved in offshore drilling in disputed waters South China Sea, where Beijing has overlapping territorial claims with or countries including Vietnam, Philippines, Brunei, Taiwan, and Malaysia.

“China's reckless and belligerent actions in South China Sea and its aggressive push to acquire sensitive intellectual property and techlogy for its militarisation efforts are a threat to U.S. national security and security of international community,” U.S. Commerce Secretary Wilbur Ross said in a statement.

“COC acts as a bully for Peoples Liberation Army to intimidate Chinas neighbors, and Chinese military continues to benefit from government civil-military fusion policies for malign purposes,” Ross said.

COC did t immediately comment.

Chinese state-owned company Skyrizon was also ded to ecomic blacklist, for its push to “acquire and indigenise foreign military techlogies,” Ross said.

Beijing Skyrizon Aviation, founded by tycoon Wang Jing, drew U.S. criticism for an attempt to take over Ukraines military aircraft engine maker Motor Sich in 2017. concern was that vanced aero techlogy would end up being used for military purposes.