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The U.S. Adds Chinese Oil Giant CNOOC to Its Export Blacklist

MIN READJan 14, 2021 | 21:50 GMT

Targeting China’s third-largest oil company highlights the South China Sea’s importance to U.S. strategy, which is unlikely to change under Biden.

A man stands outside the CNOOC headquarters building in Beijing, China, on July 29, 2016.

(STR/AFP via Getty Images)

The U.S. Commerce Department added the Chinese National Offshore Oil Corporation (CNOOC) to its entity list on Jan. 14, effectively cutting off China’s third-largest oil company from U.S. exports. The move highlights the South China Sea’s importance to U.S. strategy, which will likely continue -- though not necessarily expand -- under U.S. President-elect Joe Biden. The Trump administration has significantly increased pressure on CNOOC in recent months, beginning in December when it added CNOOC to a separate U.S. Pentagon list of companies that are either owned by or controlled by the Chinese military, which will force certain U.S. investors to divest from CNOOC’s shares by mid-November. Just hours before the Commerce Department’s announcement, the S&P Dow Jones announced it was removing CNOOC from impacted indices to comply with a Jan. 13 presidential order banning U.S. investment into designated Chinese military-linked companies. As a result, major U.S. exchanges will likely delist...

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