China vowed on Saturday to respond to the delisting 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 necessary measures to resolutely safeguard the legitimate rights and interests of Chinese enterprises,” according to the state-run Global Times.
The NYSE said on Thursday that it will delist China Telecom Corp. Limited, China Mobile Limited, and China Unicom Hong Kong Limited.
The investment ban will take effect on Jan. 11, just days before President-elect Joe Biden is due to be inaugurated.
According to NYSE, trading in the three companies will be suspended possibly as soon as Jan. 7 or as late as Jan. 11.
The commerce ministry said that the U.S. was “abusing national security and using state power to crack down on Chinese enterprises” and said the move was “not in line with market rules and logic, which harms not only the legitimate rights of Chinese enterprises, but also the interests of investors in other countries, including the US.”
It added, “We hope that the US and China will work together to create a fair, stable and predictable business environment for enterprises and investors, so as to get bilateral economic and trade relations back on track.”
It was said that Trump has alleged pursued an aggressive economic agenda against China that has become even more restrictive since the emergence of Covid-19, which Trump has derogatively labeled the “China virus,” in Wuhan.
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.
The United States’ act of abusing national security to suppress Chinese enterprises is inconsistent with market rules and will weaken the confidence of all parties in the U.S. capital market, a spokesperson for China’s Ministry of Commerce said Saturday.
The spokesperson made the remarks in response to the New York Stock Exchange’s announcement Thursday to delist China Telecom Corporation Ltd., China Mobile Ltd. and China Unicom (Hong Kong) Ltd.
The U.S. act of abusing national security and using state power to suppress Chinese enterprises is inconsistent with market rules and goes against the logic of the market, said the spokesperson.
The move will not only harm the legitimate rights and interests of Chinese enterprises, but also the interests of investors from other countries, including the United States, said the spokesperson, adding that it will seriously weaken the confidence of all parties in the U.S. capital market.
China opposes the U.S. act of abusing national security and listing Chinese enterprises as so-called “Communist Chinese military companies” and will take necessary measures to resolutely safeguard the legitimate rights and interests of Chinese enterprises, the spokesperson said.