US and China flags will be displayed at the booth of the American International Chamber of Commerce (AICC) during China International Fair for Trade in Services in Beijing, China, 28 May 2019.
Jason Lee | Reuters
China vowed on Saturday to respond to the New York Stock Exchange’s bailout of three telecommunications giants under an executive order signed by President Donald Trump in November.
The Ministry of Commerce said in a statement that China will “take the necessary steps to resolutely protect the legitimate rights and interests of Chinese companies,” according to the state-run Global Times.
The NYSE said on Thursday that the China Telecom Corp. Limited, China Mobile Limited and China Unicom Hong Kong Limited will be deleted. Trump signed an injunction in November banning Americans from investing in companies allegedly associated with the Chinese military.
The investment ban will take effect on Jan. 11, just days before President-elect Joe Biden will be inaugurated. According to the NYSE, trading in the three companies may be suspended as soon as January 7 or as late as January 11.
The Commerce Department said the US was “abusing national security and using state power to tackle Chinese companies” and said the move “was inconsistent with market rules and logic, not only harming the legitimate rights of Chinese companies. , but also the interests of investors in other countries, including the US. “
It added, “We hope the US and China will work together to create a fair, stable and predictable business environment for companies and investors, so that bilateral economic and trade relations get back on track.”
Trump has pursued an aggressive economic agenda against China that has become even more restrictive since the emergence of Covid-19, which Trump in Wuhan has differently dubbed the ‘Chinese virus’.
Biden is not expected to radically change the relationship between the US and China, saying on Monday that he would “hold the Chinese government accountable for its violations in trade, technology, human rights and other fronts.”
The White House did not immediately respond to a request for comment on China’s statement on Saturday. Biden’s transition team also did not respond to a request for comment.
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