The merger and reorganization of ChemChina and Sinochem is in progress

The chairman of Sinochem Group and the chairman of China National Chemical Corporation stated in the State Council Information Office on the 2nd that the merger and reorganization of China National Chemical Corporation and Sinochem Corporation is in progress, and the merger of the two companies is very necessary.

It is reported that China National Chemical Corporation is a state-owned enterprise established on the basis of enterprises under the former Ministry of Chemical Industry. It is the largest chemical enterprise in China. It ranks 144 in the Fortune 500 with 148,000 employees and 87,000 employees located outside of China.

Sinochem Group Co., Ltd. (Sinochem Group for short, Sinochem Group for short) was established in 1950. Its predecessor was China National Chemical Import and Export Corporation. It is now an important state-owned enterprise supervised by the SASAC, headquartered in Beijing.

The United States has also identified 11 Chinese companies as “related to the Chinese military”, and ChemChina and Sinochem are listed

Following the listing of 20 Chinese companies such as Huawei and Hikvision as "owned or controlled" by the Chinese military in June this year, the US Department of Defense added 11 Chinese companies to the list.

According to the list published on the US Department of Defense website on the 28th, the 11 Chinese companies are:

China Communications Construction Company (China Communications Construction Company)

China Academy of Launch Vehicle Technology (CALT)

China Dongfanghong Satellite Co., Ltd. (China Spacesat for short)

China United Network Communications Group Co., Ltd. (ie China Unicom Group)

China Electronics Corporation (China Electronics Corporation)

China National Chemical Engineering Group Co., Ltd. (China National Chemical Engineering Group Co., Ltd.)

China National Chemical Corporation (China National Chemical Corporation)

Sinochem Group Co Ltd

China State Construction Group Co., Ltd. (China State Construction Group Co., Ltd.)

China Three Gorges Corporation Limited (China Three Gorges Corporation Limited)

China Nuclear Engineering & Construction Corporation (China Nuclear Engineering & Construction Corporation)

The U.S. Department of Defense declared in a statement that the Pentagon was “determined to highlight and counter China’s'military-civilian integration development strategy'”, targeting Chinese companies, universities, and research projects, claiming that these entities “through acquired and developed advanced technologies and expertise To support the modernization goal of the Chinese army."

The statement finally threatened that the US Department of Defense will continue to update the list under appropriate circumstances.

The list does not come with any direct sanctions and restrictions, but Reuters pointed out on the 29th that this move laid the foundation for the US government to take targeted sanctions.

In June of this year, the US Department of Defense drafted a list of 20 Chinese companies, claiming that these Chinese companies are "owned or controlled" by the Chinese military. A U.S. Department of Defense official confirmed the authenticity of the document and said that the list has been submitted to Congress.

The Financial Times reported that the National Defense Authorization Act of 1999 authorized the Department of Defense to compile a list of companies "owned or controlled" by the Chinese People’s Liberation Army that have operations in the United States. These companies are engaged in the provision of commercial services, manufacturing, production or Export.

It is worth noting that just being included in the list will not trigger sanctions, but the President of the United States can decide whether to impose sanctions, including blockade of the property of these companies.