As a result of a recent US executive order, the New York Stock Exchange will delist China Mobile, China Unicom and China Telecom, symbolically. These giant Chinese telecommunication companies are alleged to have military ties with China. This severance is unprecedented and goes into the core nexus that we will have two internets in coming years – the Chinese-led and the American-led. I am not sure there is any global-interest commonality between these two superpowers anymore.
The New York Stock Exchange will deslist China’s three largest state-run telecommunication companies to comply with an executive order that bars U.S. investments in Chinese companies with suspected military ties. China Mobile, China Unicom and China Telecom will be suspended from trading by Jan. 11 in a “symbolic severing of longstanding ties between the Chinese business world and Wall Street,” per The New York Times. The executive order, issued by the Trump administration in November, was part of a broader effort to decouple the U.S. and Chinese economies.
When the US banned Huawei from its semiconductor technologies, I wrote that any asymmetric reaction from China could result in Trump “delisting” Chinese firms in New York. To a large extent, China has not really done much, in direct retaliation, except ramping favorable balance of trade against the United States, being the manufacturing heart of the world.
With this delisting announcement, we will see what will happen, and what specifically China will do. Sure, I expect it to stay cool until it gets the signal on how Joe Biden will run his show. But if the trajectory continues, American companies like Apple, Dell, Tesla and practically anyone that makes “hardware” better get ready for an unpredictable future.
And finally, how far with that your book, on the free market, and capitalism? There is no ritual in the world – you have to do what works for you. China has invented its model. The U.S. has it. But when the heat comes, they can change colors. Poor NYSE on this reality!
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