Daily Management Review

Action To Be Taken By China Over Delisting Of Chinese Telecom Firms In US


Action To Be Taken By China Over Delisting Of Chinese Telecom Firms In US
After the New York Stock Exchange gas started taking action against Chinese companies by delisting them - three Chinese telecom companies have so far been delisted, Chinese authorities have said that the country will take "necessary measures" in order to safeguard the interests of its companies listed in the United States.
Such action against Chinese companies is being taken since the US government have adjudged such companies to have links with the Chinese military. This was said by the commerce ministry of China on Saturday. 
China Mobile, China Unicom and China Telecom would be delisted by them, the NYSE said on Thursday. This action follows a move by US president Donald trump in November of banning US investment in 31 Chinese companies that have been identified by the Trump administration to be owned or controlled by the Chinese military.
"This kind of abuse of national security and state power to suppress Chinese firms does not comply with market rules and violates market logic," the Chinese Ministry of Commerce said in a statement.
"It not only harms the legal rights of Chinese companies but also damages the interests of investors in other countries, including the United States," it added.
While reiterating that it will take appropriate actions to protect its companies in the US, the Chinese ministry also called on the United States to come to a mid-way point to an agreement with China so that it can be possible to put bilateral trade relations on the right track.
The outgoing Trump administration has stepped up its hard line stance against China even as just a few weeks are left for the exit of Trump from the White House and the taking over of the presidency of the country by the President-elect Joe Biden on January 20.
Following a series of disputes over issues like trade and human rights, the bilateral relations between the two largest economies of the world have come under increasing strain.
In December, dozens of Chinese companies were added to a so called trade blacklist by the US Commerce Department over charges that such companies were being used by Chinese government to harness civilian technologies for military purposes.
The election of Biden as the US president will help to ease the existing tensions between the two countries, Chinese diplomats have previously expressed hopes.
The relationship between China and the United States had reached a "new crossroads" and "a new window of hope" could now be opened, China's senior diplomat Wang Yi said in his comments that were published on Saturday in China.