Wall Street To Kick Out The Chinese Telecom Giants:
Wall Street will kick out the three largest Chinese Telecom giants as it seeks to follow the executive order by Donald Trump prohibiting investment in Chinese firms due to security issues.
The New York Stock Exchange will remove three major Chinese telecom operators from listing at the stock exchange. These companies were accused of stealing intellectual property.
China Mobile, one of the most valuable companies, China’s listed state-owned enterprises and administration commission, will be delisted after more than two decades, along with China Unicom Hongkong and China Telecom. Trump’s administration has already blamed Chinese telecom carriers for having ties to China’s military.
Why Does All This happen?
The US Department of defence Pentagon had previously pointed out that these Chinese operators are having links with China’s military, prohibiting Americans from investing in these Chinese telecom companies. China also retaliated by blacklisting some US companies, soaring political tensions between the two economic giants.
The NYSE confirmed that it would halt all shares of telecom Operators by Jan 11. At the same time, the process of kicking them off from the Big Board has been started. This move was highly expected after issuing executive orders in November by the administration that banned locals from investing in Chinese companies that have connections with China’s military.
This move will possibly hit the companies as they earn a significant part of their money from international investors by selling shares. But on the other hand, China has mentioned previously that these companies make all of their revenue in China as these state-owned companies lead the telecom industries in China.
This delisting highlights the weakening and brokering of long-established relationships between powerful economies and escalating geopolitical conflicts between them.
The Trump administration targeted these major Chinese telecom operators and targeted Tiktok, Huawei, and Tencent for having military links.
More than 200 Chinese companies are currently listed on US stock markets, including e-commerce giants Alibaba and JD.Com.
Last month, the US House of Representatives passed a law to kick Chinese companies off US stock exchanges if they do not comply with its auditing rules.
Our Thought Bubble:
China Mobile has been a centrepiece of the New York Stock Exchange since its entrance. Its entrance into the New York Stock Exchange was a massive progression of the globalisation of capital markets. Its blameable withdrawal is a symbol that their deglobalisation has started in straightforward means.
Is wall Street kicking out the Chinese Telecom giants temporary? Will Joe Biden welcome them back with open arms and bow ties?