US industry group applauds NYSE move to delist three Chinese telecoms companies
- The exchange rejects the appeals by China Mobile, China Unicom (Hong Kong), and China Telecom to remain on the US stock exchange
- The NYSE starts the process to delist the companies’ American depositary receipts in 10 days
A US industry group on Monday applauded the New York Stock Exchange’s move to delist China’s big three telecommunications carriers to comply with a ban introduced last year by the Trump administration.
“The NYSE is doing the right thing by following the law and delisting these China telecoms companies,” said Zach Mottl, chairman at the Coalition for a Prosperous America (CPA), a bipartisan advocacy group for American manufacturing and agricultural interests.
“For decades, the Chinese Communist Party – with Wall Street’s help – has exploited US capital markets and American investors to build its national champion Chinese companies that help modernise the capabilities of the People’s Liberation Army,” said Mottl.
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CPA urged the Biden administration to continue to expand on the policies of the Trump administration to make sure that US capital markets are not accessible for “companies that support the [Chinese Communist Party] military-civil fusion strategy”.
Spokesmen at China Telecom and the NYSE declined to comment, while the NYSE, China Mobile, and China Unicom did not immediately respond to emails seeking comment.
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“We commend the Department of Defence for releasing this list of Chinese military companies operating in the United States,” said Republican Senator Tom Cotton from Arkansas, calling the list “one piece of a broader campaign our nation must wage against the Chinese Communist Party and its parasitic technology transfer efforts”.
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The various US government departments were also at odds of how tough the ban should be. The Treasury Department had wanted to be more cautious and implement a narrower order to avoid disruption in the markets.
In the filings last Friday, the telecoms companies stressed that they have complied “with the laws and regulations, market rules as well as regulatory requirements”.
In a notable contrast, two other Chinese companies that are also on the Defence Department list of military companies – Xiaomi and Luokung Technology – both won court battles to be exempted from sanctions.