The Chinese Foreign Ministry has lashed out against the executive order, accusing the U.S. of “viciously slandering” its military-civilian integration policies and vowed to protect the country’s companies.
Source: PFW News
The New York Stock Exchange is reversing its plans to delist Chinese telecommunications companies under the direction of an executive order signed by President Donald Trump.
The exchange announced on Monday that it would not delist China Mobile Ltd., China Telecom Corp Ltd., and China Unicom Hong Kong Ltd. after seeking “further consultation with relevant regulatory authorities of the Office of Foreign Assets Control (OFAC).” The OFAC is the financial intelligence and enforcement arm of the Treasury Department.
Last week, the NYSE announced it would delist the companies to comply with an executive order signed by President Trump in November that bans investments in Chinese firms the US claims have ties to China’s military. The order comes into effect January 11th.
As Dave DeCamo of Antiwar notes:
While the three companies are also listed in Hong Kong and generate their revenue in China, delisting the firms would have cut off a significant source of capital and further escalated US-China tensions. The firms have been listed on the NYSE for years. China Mobile, for example, has been on the NYSE since 1997.
President Trump’s order is part of his broader anti-China policies his administration has been ramping up in its final days. The reversal of the delisting calls into question the power a president has to prohibit Americans from investing in foreign companies.
The Chinese Foreign Ministry has lashed out against the executive order, accusing the U.S. of “viciously slandering” its military-civilian integration policies and vowed to protect the country’s companies, reports Bloomberg.
“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 spokesperson for the Chinese Commerce Ministry said in a Saturday statement.
The FTSE, Russell, S&P, and Dow Jones Indices have all said in the past month they would remove some Chinese companies from equity gauges to comply with the order.
MSCI, one of the largest stock index companies in the world, has also committed to complying with the order, announcing in December it would remove 10 Chinese securities from its indexes effective at the close of businesses on Jan. 5, 2021.