China feels so relaxed after Biden’s victory that it has completely forgotten that Donald Trump is still in office. While Beijing is trying to warm up trade relations with Biden’s cabinet, Trump has introduced new sanctions against China as a farewell gift.
President Trump has blacklisted China National Offshore Oil Corp. (CNOOC), one of the largest state-owned oil companies. The reason for new punitive measures was the beginning of drilling operations in disputed South China Sea waters. The US considers it a military fortification, whereas China insists that this is a geological exploration. Known for his short temper when it comes to China’s affairs, Trump has immediately introduced new sanctions. He is also planning several new tough moves against Beijing in the final weeks of his term.
The US is similar to a sniper in terms of sanctions and the new ones will deliver a serious blow to CNOOC. Notably, the Chinese company is involved in mutual projects with ExxonMobil. It operates on American equipment. The company has $20 billion in debt circulation and foreign investors own 16.5% of the shares in CNOOC's Hong Kong-listed unit. The sanctions have not come into force yet but CNOOC shares have already shed by 14%.
"China hopes the United States will not erect barriers and obstacles to cooperation and discriminate against Chinese companies," China’s Foreign Ministry Spokeswoman Hua Chunying said.
