The New York Stock Exchange is reversing its plan to delist three Chinese telecom companies — a move that was prompted by an executive order from President Trump. The Trump administration has alleged that some Chinese companies funnel money to China's military. China had threatened to retaliate for the move.
Just last week, the NYSE said it had determined that the three Chinese companies "are no longer suitable for listing." But in a brief statement announcing its reversal, the exchange said it changed course after "further consultation with relevant regulatory authorities." It added that it will continue to evaluate the companies' status.
American depositary shares in the companies — China Telecom Corp. Ltd., China Mobile Ltd. and China Unicom Hong Kong Ltd. — had been slated to be delisted on Jan. 11 with the NYSE originally citing Trump's executive order from Nov. 12 that declared a national emergency due to a threat posed by China's military-industrial complex.
The president sought to bar any trading in public securities tied to a "Communist Chinese military company," saying that China has been "increasingly exploiting United States capital to resource and to enable the development and modernization of its military."
But Chinese Foreign Ministry spokesperson Hua Chunying rejected that depiction, saying on Monday that the Trump administration was politicizing trade issues and seeking to suppress Chinese companies "under the weakest pretext of national security."
"This is in serious violation of market competition principles and international trade rules the U.S. side always prides itself on," Hua said.