1/15/21 Financial News: U.S. Banned Communist China Stated-Owned Oil Companies

Source: finance.sina.cn

1. CNOOC and other Stated-Owned oil companies are banned by the Commerce Department of US

On Jan. 14, 2021, U.S. companies will now have to apply for special permits to export goods to the state-owned company, known as CNOOC. The Commerce Department on Thursday effectively banned exports to Communist China’s state-owned oil company, adding the company that owns significant energy assets in the U.S. to its blacklist of foreign entities it says threaten U.S. national security. Commerce specifically cited the role of the Communist China National Overseas Oil Corporation in building artificial islands in the South China Sea, a years-long effort meant to bolster Beijing’s territorial claims, as its reason for placing the company on its entity list.


2. The Present Tense of Decoupling

The major report “Decoupling: Severed Ties and Patchwork Globalisation”, released by the European Chamber in partnership with MERICS, measures the costs of decoupling for businesses operating in Communist China. The report finds the technology war is inflicting real damage on companies and economies alike. With decoupling dynamics showing no signs of reversing, solutions are quickly needed to deal with this new reality of ‘patchwork globalisation’. The report discloses the following points: The future of globalisation with Communist China is at stake; The current impact of decoupling on European companies; The present and future tech quagmire: preventing digital dilemmas, tech autarky and a weaponization of interdependence; The responses: uncharted, precarious and costly.


3. Trump administration blacklists Xiaomi as a ‘Communist Chinese military company’

On Jan.14.  the Trump administration has decided to put one more Chinese electronics giant in its sights: Xiaomi, the world’s number three phone manufacturer. The US Department of Defense is now designating Xiaomi as a “Chinese Communist military company,” following up by  Trump’s executive order that bans the US from investing in such companies — and might force US companies and other US investors to divest in Xiaomi on November 11th, 2021, as reported by Reuters.


4.    Garlic sprouts price is higher than beef in Communist China

The food cost continues to rise when Chinese Spring Festival is approaching. Recent days, a picture, showing Chengdu’s fresh garlic sprouts price of 80 yuan/kg (US$12.3/kg), was widely spread on the internet which drew a lot of Netizens’ attention, many of whom sign that it is more expensive than beef’s price of 77.3 yuan/kg (US$11.9/kg). Some netizens joked that it is better to go farming by themselves.

The cold wave maybe the main reason above. Recently, the temperature in many provinces and cities across the country has reached a record low in recent years. Not only has the Sichuan Basin experienced obvious snowfall, but also Kunming, an important vegetable production area, is also unusually humid and cold. The obstruction of logistics caused by the weather is also a “booster” for rising vegetable prices.


5.    Corn Supply in Shijiazhuang was interrupted due to the traffic control caused by CCP virus

On January 14, a reporter from the Financial Association reported that despite the introduction of a number of policies, the corn supply in Shijiazhuang City, Hebei was basically interrupted due to the traffic control caused by CCP virus. The merchant said that food transportation vehicles can apply for a pass, but personnel will face isolation when they return. Thus, external suppliers are reluctant to deliver corn to Shijiazhuang. Now all the delivery basically stopped, and corn is out of stock.


6.    Central Bank’s 2 billion yuan (US$0.3 billion) reverse repurchase operation hit a new low in nearly 10 years.

After carrying out 5 billion yuan (US$0.77 billion) reverse repurchase operation for several consecutive days, in order to maintain the reasonable and abundant liquidity of the banking system, the central bank carried out 2 billion yuan ($0.3 billion) reverse repurchase operation by means of interest rate bidding on Jan 14, and the volume of single day reverse repurchase operation hit a new low in nearly 10 years. Data shows that in the past 10 years, there have been only 12 reverse repurchase operations with a single day of less than 10 billion yuan ($1.55 billion) in 7 days; only 6 reverse repurchase operations in a single day for 5 billion yuan, of which 3 occurred this month.


By 【Financial Team-Wendy】

Disclaimer: This article only represents the author’s view. Gnews is not responsible for any legal risks.

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