China has responded emphatically to the move by New York Stock Exchange (NYSE) – delisting three Chinese telecommunication companies – following an executive order issued by President Donald Trump.
According to the Global Times, the ministry of commerce has stated that the country will be taking important steps to ensure the rights of Chinese companies.
The three companies include China Telecom, China Mobile, and China Unicom Hong Kong. They will not be allowed to trade in the US from January 7, as reported by the stock exchange. In November, an executive order was issued which prevented Americans from investing in Chinese companies that presumably had backing from the Chinese military.
Early in April, the Trump administration accused China Telecom of threatening their national security and urged regulators to prevent the company from carrying out activities in the country. Moreover, the US is also under the impression that the company is controlled by the Chinese government.
The commerce ministry has criticized this move, saying that this was highly unethical and an abuse of power on part of the US government to pressurize Chinese companies. The statement also highlights that this executive order was against the rules and regulations of the market and its damaging to Chinese companies as well as investors from various countries.
The commerce ministry in China has also urged the two countries to collaborate, and ensure a smooth business environment devoid of discriminatory policies so that trade and economic relations can resume peacefully.
Trump has been cracking down on China, perusing aggressive policies that have aggravated after the coronavirus pandemic which Trump blames China for.
Biden will most likely continue on the same path as he has stated that he will take the necessary measures to hold China responsible for their unethical practices in relation to technology, trade, human rights, etc.
Trump has been making efforts to ensure the US telecommunications industry does not remain dependent on China in any way.
Previously, the US government had also imposed limitations on the Chinese telecom company, Huawei for allegedly stealing confidential trade information.
Besides telecom companies, Trump is also targeting other Chinese companies, claiming that they will be eliminated from US stock indices if they fail to follow the auditing standards of the country.