The New York NYSE stock exchange operator will discontinue listing these Chinese telecommunications companies. The exchange operator is doing so on orders from the Trump administration, which last month banned American investments in Chinese companies that Washington said are military-controlled or owned by the military in China.
Trading with China Mobile, China Telecom and China Unicom Hong Kong will cease between January 7th and 11th. Additionally, the process has begun delisting the companies, according to a NYSE statement. The three companies are also listed in Hong Kong.
US President Donald Trump’s November executive order affects some of China’s largest corporations. In short, it means that US investment in Chinese companies owned or controlled by the military is excluded. Washington wants to put pressure on Beijing in what it sees as an abuse of trade practices.
The injunction prohibited US investors from buying and selling shares in a number of Chinese companies that the Pentagon has classified as militarily affiliated. The list now includes 35 companies including oil company CNOOC and China’s largest chip maker Semiconductor Manufacturing International.
The Chinese Foreign Ministry, in turn, accused the US of having “falsely accused” its military-civilian integration policy and of having vowed to protect the country’s companies. China is also threatening to blacklist its own US companies in response to previous actions by the Trump administration.
China Telecom is also under attack by the US Federal Communications Commission (FCC). The Telecom Watchdog recently said it had begun revoking the company’s license to operate in the United States.
Relations between Washington and Beijing have continued to deteriorate over the past year. This is partly due to the approach to the coronavirus outbreak, but also due to Beijing’s introduction of a national security law in Hong Kong and mounting tensions in the South China Sea.
Regardless of the matter, Trump signed a law last month banning Chinese companies from US stock exchanges unless they comply with US accounting standards.