The flags of the US and China are displayed at the stand of the International Chamber of Commerce of America (AICC) during the China International Trade Services Fair in Beijing, China, on May 28, 2019.
Jason Lee | Reuters
China pledged on Saturday to respond to the withdrawal of three telecommunications giants by the New York Stock Exchange under an executive order signed by President Donald Trump in November.
The Commerce Ministry said in a statement that China “will take the necessary measures to decisively safeguard the legitimate rights and interests of Chinese companies,” according to the Global Times.
The NYSE said Thursday it will withdraw China Telecom Corp. Limited, China Mobile Limited and China Unicom Hong Kong Limited. Trump signed an order in November banning Americans from investing in companies alleging they had a connection to the Chinese military.
The investment ban will take effect on January 11, just days before the inauguration of President-elect Joe Biden. According to the NYSE, trading on the three companies will likely be suspended as soon as January 7 or through January 11.
The Commerce Ministry said the U.S. “abused national security and used state power to repress Chinese companies” and said the measure “was not in line with the rules and logic of the market, which harms no not only the legitimate rights of Chinese companies, but also the interests of investors in other countries, including the US. “
He added: “We hope that the United States and China will work together to create a fair, stable and predictable business environment for companies and investors, in order to restore bilateral trade and economic relations.”
Trump has pursued an aggressive economic agenda against China that has become even more restrictive since the advent of Covid-19, which Trump has repealed as the “China virus” in Wuhan.
Biden is not expected to drastically change the relationship between the United States and China and said Monday that “it will hold the Chinese government accountable for its abuses 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. The Biden transition team also did not respond to any requests for comment.
Subscribe to CNBC Pro for live TV broadcasts, in-depth information and analysis on how to invest during the next presidential term.