Technology News
Reuters team
SHANGHAI (Reuters) – China will take “necessary steps” to safeguard its companies’ interests after the New York Stock Exchange began to withdraw capital from three Chinese telecommunications companies that Washington says have military ties, said the country’s ministry of commerce on Saturday.
The NYSE said on Thursday that it would withdraw China Mobile, China Unicom and China Telecom following President Donald Trump’s decision in November to stop U.S. investment in 31 companies that Washington says are owned or controlled by the Chinese military.
“This type of abuse of national security and state power to suppress Chinese companies does not comply with market rules and violates market logic,” said the Chinese Ministry of Commerce in a statement.
“This not only undermines the legal rights of Chinese companies, but also undermines the interests of investors in other countries, including the United States,” he added.
Although the ministry said it would take steps to protect its companies, it also asked the United States to find China halfway and put bilateral trade relations back on track.
In the last few weeks before President-elect Joe Biden took office on January 20, the Trump administration has stepped up its tough line against China.
Relations between the two largest economies are increasingly strained amid a series of disputes on issues such as trade and human rights.
The United States Department of Commerce added dozens of Chinese companies to a trade blacklist in December, accusing Beijing of using its companies to take advantage of civilian technologies for military purposes.
Chinese diplomats have expressed hope that Biden’s election will help ease tensions between the two countries.
In comments published on Saturday, senior Chinese diplomat Wang Yi said relations with the United States had reached a “new crossroads” and that “a new window of hope” could now be opened.