The trade tensions between Beijing and Washington have flared up again as the New York Stock Exchange moves to delist China’s three large telecom carriers, the Associated Press reports.
What Happened: The Wall Street Journal notes that NYSE’s move complies with outgoing President Donald Trump’s order issued on Nov. 12, barring American investment in publicly traded companies that help the Chinese military.
NYSE will delist China Mobile Ltd. CHL, China Telecom Corporation Limited CHA, and China Unicom Hong Kong Limited CHU. As per WSJ, China Mobile is among the most valuable of China’s listed state-owned enterprises.
The exchange’s decision is unlikely to harm the three telecom carriers as pressure from the Trump administration has put a lid on the Chinese firms’ ability to operate in the U.S. — also, the country makes a negligible part of the telecom carrier’s international business.
Why It Matters: The top three service providers in China have millions of customers under their belt, a fact that has attracted many investors to their Chinese-listed shares.
The carriers have also spent billions on 5G wireless networks with support from Beijing officials, who have dubbed 5G upgrades a national priority, as per WSJ.
“China opposes the Americans from abusing national security by listing Chinese companies into the so-called ‘Communist China Military Companies’ list and will take the necessary countermeasures to resolutely safeguard the legitimate rights and interests of Chinese companies,” a Chinese Commerce Ministry spokesperson said in a statement to AP.
The statement added that the U.S. move would “greatly weaken all parties’ confidence in the U.S. capital market.”
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