This past Thursday, the New York Stock Exchange (NYSE) said that it would stop handling transactions involving the securities of China Mobile, China Unicom and China Telecom. The move by the securities exchange comes after U.S. President Donald Trump, back in November, banned American companies and consumers from investing in 31 outfits that Trump said are owned or controlled by the Chinese military.
As you might imagine, Chinese government officials are not pleased. The Chinese Ministry of Commerce said in a statement, “This kind of abuse of national security and state power to suppress Chinese firms does not comply with market rules and violates market logic. It not only harms the legal rights of Chinese companies but also damages the interests of investors in other countries, including the United States.” The Ministry not only said that it will take action to protect its firms, it also asked the U.S. to agree to a compromise over issues like trade and human rights. It isn’t clear exactly what actions China is considering against the U.S.
