China Warns of Retaliation after NYSE Delist Tech Firms

Hours ago, China announced that it would take necessary counter-measures after the New York Stock Exchange (NYSE), began delisting securities of three Chinese telecommunications companies.

The stock exchange reported that it took the decision because of an executive order from US President Donald Trump that barred Americans from investing in firms with ties to the Chinese military.

According to AP, the U.S. has stepped up economic sanctions and travel bans against Chinese companies, government officials and Communist Party members, especially recently Under Trump. In December, the U.S. announced plans to limit visas for members of the Chinese Communist Party and their family members to one month, instead of 10 years.

Moreover, Chinese tech giant Huawei has been shut out of the U.S. market and the U.S. has lobbied other countries to follow suit. In contrast, the Chinese Commerce Ministry spokesperson explained in a statement that the NYSE delisting will greatly weaken all parties' confidence in the US capital market.

In addition, all three telco companies are state-run enterprises that operate under Beijing's firm control. They are the only three companies in China that are allowed to provide broad telecommunication services, an industry the government believes should remain under state control.

Noteworthy, in December, US Congress passed a bill that would close American markets to Chinese firms that don't comply with US oversight or financial audits.