China warns of ‘counter-measures’ to New York Stock Exchange ban

China warns of ‘counter-measures’ to New York Stock Exchange ban

China says it will take necessary “counter-measures” in response to the New York Stock Exchange’s move to delist three major Chinese telecoms, in the latest flare-up of tensions between Beijing and Washington.

Key points:

  • The suspensions stem from Donald Trump’s executive order targeting so-called “Communist China military companies”
  • China has said it will take “necessary counter-measures” to protect its companies
  • The Trump administration has recently stepped up economic sanctions and travel bans against Chinese companies

The stock exchange announced on Thursday that it would delist China Telecom Corp, China Mobile and China Unicom Hong Kong, with trading of the companies to be suspended some time between January 7 and January 11.

The move stems from an executive order President Donald Trump issued on November 12, barring investment in publicly traded companies that the US Government says are owned or controlled by the Chinese military.

“China opposes the Americans from abusing national security by listing Chinese companies into the so-called ‘Communist China Military Companies’ list and will take the necessary counter-measures to resolutely safeguard the legitimate rights and interests of Chinese companies,” a spokesperson for the Chinese Commerce Ministry said in a statement.

The actions will also “greatly weaken all parties’ confidence in the US capital market”, the statement said.

The ministry did not offer details on what the measures might be.

Under Mr Trump, the US has stepped up economic sanctions and travel bans against Chinese companies, government officials and Communist Party members, especially in Mr Trump’s last few weeks in office.

In December, the US announced plans to limit visas for members of the Chinese Communist Party and their family members to one month, instead of 10 years.

Chinese tech giant Huawei has been shut out of the US market and the US has lobbied other countries to follow suit, albeit with mixed results.

AP

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