China? COSCO Group issued a strong statement denying it had links to the Chinese military after the company, together with container manufacturer CIMC, was added to a US blacklist.
COSCO Shipholding? share price ped nearly 10% last week following the news it had been placed on the so-called 1260H list of ?hinese military companies? CIMC? stock saw a decline of around 5%.
The list is mainly a ?ame and shame?mechanism with no enforcement powers but its aim is to dissuade US companies from doing business with the entities. Washington says it is trying to fight China? ?ilitary-Civil Fusion strategy?
It is thought the list may be used as a basis for further, more restrictive measures in future, which could have an impact on the container market.
The US Department of Defence added CIMC to the list, as well as three COSCO companies: COSCO SHIPPING and subsidiaries COSCO SHIPPING (North America) Inc and COSCO SHIPPING Finance Co. Ltd.
Several maritime and shipbuilding companies were already on the list, which was d in 2021, and now has more than 55 Chinese companies entered, plus their subsidiaries.
Maritime firms include Sinotrans & CSC Holdings, CSSC Offshore & Marine Engineering (COMEC) which includes Guangzhou Wenchong Shipyard and Huacheng (Tianjin) Ship Leasing, China State Shipbuilding Corporation Limited (CSSC) and China Shipbuilding Trading (CSTC).
This week it was reported that a probe by the US government headed by US trade representative Katherine Tai found China uses unfair policies and practices to dominate the global maritime, logistics and shipbuilding sectors. The probe was prompted by complaints by US steelmakers and could potentially lead to tariffs or port fees on Chinese- built vessels, as earlier proposed by the unions.
