China pledges retaliation to operators delisting on NYSE

China pledges retaliation to operators delisting on NYSE

The Chinese government warned it will take action against the US for delisting the country’s largest operators from the New York Stock Exchange (NYSE), on claims the telecom firms had ties with the Chinese military.

Reuters reported, the NYSE delisted China Mobile, China Unicom, and China Telecom on December 31, after President Donald Trump banned US investment in 31 companies the US claimed are controlled by the Chinese military.

The Chinese ministry of commerce said in a statement: “This kind of abuse of national security and state power to suppress Chinese firms does not comply with market rules and violates market logic.

“It not only harms the legal rights of Chinese companies but also damages the interests of investors in other countries, including the United States”.

The move from the US government follows its long campaign against infrastructure and smartphone manufacturer Huawei, which the US claims has close ties with the Chinese government, potentially providing backdoors to a country’s infrastructure for spying. An accusation Huawei has long denied.

In December, the US Department of Justice was in talks with the legal team of Huawei CFO Meng Wanzhou over a deal that could lead to her release.