Flags of the U.S. and China are displayed at the American International Chamber of Commerce (AICC) stand during the China International Service Trade Fair in Beijing, China, on May 28, 2019.
Jason Lee | Reuters
China pledged on Saturday to respond to the closing of three telecommunications giants by the New York Stock Exchange under an executive order signed by President Donald Trump in November.
The Ministry of Commerce said in a statement that China “will take the necessary steps to resolutely safeguard the legitimate rights and interests of Chinese companies,” according to the state-run Global Times newspaper.
The NYSE said on Thursday that it would withdraw the China Telecom Corp. stock exchanges. Limited, China Mobile Limited and China Unicom Hong Kong Limited. Trump signed an order in November that prohibited Americans from investing in companies that were supposedly linked to the Chinese military.
The investment ban will take effect on January 11, just days before President-elect Joe Biden takes office. According to the NYSE, negotiations on the three companies will be suspended possibly on January 7 or until January 11.
The trade ministry said the United States was “abusing national security and using state power to crack down on Chinese companies” and said the measure “was not in line with market rules and logic, which harms not only legitimate rights of Chinese companies, but also the interests of investors in other countries, including the United States. “
He added: “We expect the United States and China to work together to create a fair, stable and predictable business environment for companies and investors, in order to put bilateral economic and trade relations back on track.”
Trump has pursued an aggressive economic agenda against China that has become even more restrictive since the emergence of Covid-19, which Trump disparagingly labeled “China’s virus” in Wuhan.
Biden is not expected to dramatically alter the US-China relationship and said on Monday that he “would hold the Chinese government accountable for its abuses in trade, technology, human rights and other fronts”.
The White House did not immediately respond to a request for comment on China’s statement on Saturday. The Biden transition team also did not respond to a request for comment.
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