Following the Trump administration’s executive order, the New York Stock Exchange has identified three of China’s largest state – owned telecommunications companies as dividing the long-standing ties between the Chinese business world and Wall Street.
The exchange said In a statement Late on Thursday, China Mobile, China Unicom and China Telecom were quoted as saying in an executive order that it would suspend trading in shares by January 11. Released in November The Trump administration has barred Americans from investing in companies with ties to the Chinese military.
The U.S. Department of Defense previously listed all three companies as having significant links with the Chinese military and security forces.
Companies’ Hong Kong offices did not immediately respond to requests for comment on New Year’s Day Friday.
These lists were widely expected after the executive order was issued in November. The order is part of a broader effort by US authorities Weaken comprehensive economic connections Between the United States and China Chinese access to Wall Street money.
The move could have little impact on China’s military or security aspirations Generous funding Beijing or companies can raise money from international investors by selling shares in Hong Kong.
However, the list of the three telecommunications companies reflects China’s growth in power and wealth, and the growing arrangement between the world’s two largest economies. It also highlights the decline of long-established trade relations between the United States and China, which were formed decades ago when China sought to internationalize and reform its state-run corporate behemoths.
All three companies operate under the firm control of Beijing. They are ultimately owned by a state-owned company, a state-owned property supervisory and executive body, and are often ordered to pursue Beijing’s goals. China’s ruling Communist Party sometimes Changing administrators In three companies.
They are the only three companies in China to offer a wide range of telecommunications network services, which Beijing considers a strategic business that should be under state control.
Such large, state-owned enterprises have long been seen by economists and some Chinese officials as stifling the country’s growth.
China Mobile, the largest of the three companies, listed its shares in New York in 1997 at a critical time for the Chinese economy. Reform-minded officials in Beijing sought to get economic growth back on track, with China’s repression of the Tiananmen Square protests in 1989 intimidating foreign investors and officials delaying necessary changes.
Such a change had to be made with the swollen state-owned companies. Chinese leaders fired workers and forced them to focus on profits and productivity. Listing stocks in the United States would be more responsive to investors and more motivated to focus on the bottom.
China Mobile is one of the first large Chinese state-owned companies to sell shares in New York. Other telecommunications companies followed suit, as did government banks, oil companies and airlines. Major private Chinese companies, including online private shopping company Alibaba, have also sold shares there, up from then in 2014. The world’s largest initial public offering In New York.
Today, China’s demand for money and knowledge of Wall Street is declining. The stock markets in Shanghai and Hong Kong are the largest in the world. Last year Alibaba underlined this change Shares listed in Hong Kong, A semiautomatic Chinese city that allows investors to move money freely across its borders.
Chinese leaders’ views on state-owned enterprises have also changed. Xi Jinping, China’s top leader, has spoken of creating state-owned enterprises Large and strong More than regulated. This has caused concern among some economists and entrepreneurs about the Chinese government Plays a greater role In a private company.