CNOOC: Wall Street is kicking another big Chinese company

CNOOC: Wall Street is kicking another big Chinese company

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The New York Stock Exchange announced Friday that it will withdraw from the list CNOOC (CEO), China’s third largest oil company and its largest offshore oil producer. The company’s shares will no longer be traded as of March 9.
The exchange said it aims to comply with an order signed by former President Donald Trump in November, which prohibits Americans from investing in companies that the U.S. government suspects are owned or controlled by the Chinese military.

It is the fourth Chinese company to receive such a punishment. The exchange said in January that it would end trading on shares of China Mobile, China Telecom and China Unicom to comply with Trump’s order. Since then, they have stopped negotiating.

CNOOC has been traded in New York since 2001. She said on Sunday that she “regrets” the NYSE decision and warned in a filing with the Hong Kong Stock Exchange that the delisting could affect share prices and volumes. He added that he would “closely monitor” any developments.

Hong Kong-listed CNOOC shares fell 1.1% on Monday.

The move is not the first time that the CNOOC has been targeted by Washington. Days before Trump stepped down in January, the U.S. Department of Commerce added the company to a list that isolated it from American supplies and technology. At the time, former Trade Secretary Wilbur Ross called the company a “bully” for China’s military and claimed that it had pursued offshore oil and gas exploration in the South China Sea by other countries.

Beijing has repeatedly criticized these restrictions as an abuse of power by the United States.

The decision to remove CNOOC suggests that Washington is still willing to put pressure on Beijing in some areas while President Joe Biden begins his term.

Last month, the Biden government emphasized that the new president wants to be tough on China. In a liaison with Chinese President Xi Jinping, Biden “highlighted his fundamental concerns about Beijing’s coercive and unfair economic practices, repression in Hong Kong, human rights abuses in Xinjiang and increasingly assertive actions in the region, including in relation to Taiwan, “according to the White House.
And while Biden has adopted a more predictable and diplomatic tone than his predecessor, analysts have also pointed out that he is unlikely to slow down the fight against China in terms of technology and trade.

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