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BEIJING – China said on Saturday it would take the necessary countermeasures in response to the New York Stock Exchange’s announcement that it would withdraw three major Chinese telecommunications companies in the latest tensions between Beijing and Washington.
The stock exchange said on Thursday it would withdraw capital from China Telecom Corp. Ltd., China Mobile Ltd. and China Unicom Hong Kong Ltd., with business negotiations suspended sometime between January 7 and 11.
The move stems from an executive order that President Donald Trump issued on November 12 banning investments in publicly traded companies that, according to the U.S. government, are owned or controlled by the Chinese military.
| Ticker | Safety | Last | change | Change % |
|---|---|---|---|---|
| TEA | CHINA TELECOM | 27.55 | -0.01 | -0.04% |
| CHL | CHINA MOBILE LTD. | 28.54 | +0.25 | + 0.88% |
| CHU | CHINA UNICOM LTD. | 5.68 | -0.09 | -1.56% |
NYSE LAUNCHES PROCESS OF REMOVAL OF 3 CHINESE TELECOMPANIES COMPANIES
“China opposes Americans to abuse national security by listing Chinese companies on the list of so-called ‘Military Companies of Communist China’ and will take the necessary countermeasures to resolutely safeguard the legitimate rights and interests of Chinese companies,” a spokesman Chinese Commerce Ministry spokesman said in a statement.
The shares will also “greatly weaken the confidence of all parties in the US capital market,” the statement said.
The ministry did not give details on what the measures would be.
The stock exchange said on Thursday it would remove China Telecom Corp. Ltd., China Mobile Ltd. and China Unicom Hong Kong Ltd., with business negotiations suspended sometime between January 7 and 11. (Nicole Pereira / New York Stock Excha
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Under Trump, the U.S. has increased economic sanctions and travel bans against Chinese companies, government officials and Communist Party members, especially recently in Trump’s last few weeks in office.
In December, the United States announced plans to limit visas for members of the Chinese Communist Party and their families to one month, instead of 10 years.
Chinese technology giant Huawei has been excluded from the United States market and the United States has pushed other countries to do the same, albeit with mixed results.