On the evening of May 7, China's three major telecom operators announced that the New York Stock Exchange maintained the decision to delist the depositary shares of the three companies on the 6th, US time. This move means that all three telecom operators may be delisted from the United States. It is reported that the Biden administration may retain the ban on some Chinese companies during the Trump administration to put pressure on China, which greatly disappointed Wall Street and called for the lifting of the relevant ban. The analysis pointed out that behind the suppression of China, it actually reflects the anxiety of the United States about its own economic strength.
Image source: Screenshot of the announcement of the three major telecom operators in China , continue to suppress China.
Bloomberg quoted a number of people familiar with the matter as saying that the Biden administration is still in preliminary discussions on the investment ban imposed by the previous Trump administration on "companies allegedly linked to the Chinese military." Among them, it also includes the three largest telecommunications companies in China.
In November 2020, the former Trump administration issued an executive order prohibiting Americans from investing in "Chinese companies with military backgrounds"; in December of the same year, the United States said it would further expand the scope of application of this executive order to include exchange-traded funds, Index funds, as well as subsidiaries of Chinese companies identified as “owned or controlled by the Chinese military.” The
analysis pointed out that the implementation of this ban will not only expose the three major telecommunications operators in China to the risk of delisting in the United States, but will also cause international index companies to remove relevant listed companies from their indexes. The latest news from
shows that on the 7th, China Telecom, China Mobile, and China Unicom all announced that the NYSE maintained the decision to delist the company's depositary shares on the 6th, US time, which means that the three operators will US delisting.However, the proportion of the three major operators listed on the US stock market is very low, and their depositary shares have been suspended from trading in January US time.
Wall Street was disappointed by the series of messages released by the Biden administration. A former U.S. Treasury Department official in charge of sanctions pointed out that financial institutions around the world that deal with Chinese "military-related companies" are "in trouble." However, the financial sector has urged the Biden administration to lift the investment ban entirely, according to people familiar with the matter.
Data map: US Secretary of State Blinken.
has more than one trick to suppress China.
plans to fight against
through a bill. This is only part of the "trick" the US government wants to suppress Chinese companies.
On May 5th, US Secretary of State Blinken said that European and American countries must pay "great attention" to the so-called "exact nature" of China's investment in Western economies, and must evaluate its investment in strategic assets in detail.
Reuters bluntly pointed out, “The policy that European and American countries have difficulty reaching consensus on China issues originally regarded China as a favorable source of investment funds, such as investment in U.S. government bonds, and now sees China as a source of global stability. Threats, and avoid China's 5G communication technology."
In fact, some US politicians speculated on "China threat" and "China challenge" to suppress Chinese companies and other intentions have long been revealed.
On April 21, more than two weeks ago, the U.S. Senate Foreign Relations Committee passed the Strategic Competition Act of 2021 with a high vote. The bill clearly states that in each fiscal year from 2022 to 2026, the United States will allocate $300 million for various measures to combat "China's global influence."
The website of the American "Foreign Policy" magazine commented at the end of April that the bill lists China as a strategic competitor in various fields such as economy, technology and military security.The bill is "anti-China" and "many key areas are poorly conceived."
Data map: US President Biden.
The economic data is much lower than expected,
The US economic recovery faces a "long road"
In fact, the United States is pointing the finger at the back of China, which reflects its anxiety about the decline of its own economic strength. On May 7, the U.S. Department of Labor released the latest employment report. The country's non-farm payrolls increased by 266,000 in April, far lower than economists had expected; the unemployment rate also rose from 6% to 6.1%, not as before. Economists had expected a decline.
Subsequently, US Treasury Secretary Yellen warned that the US economic recovery still faces a "long road".
"We know that this is not a battle that will end in 100 days... Today's jobs report shows that recovery is a long journey." Yellen said on the 7th. Although she conceded that employment was expected to increase more, she still believes that the US economic recovery is "on track" - "never look at a month's data as a potential trend."
analysis pointed out that some US companies are still facing Issues such as supply chain disruptions are making job growth difficult, a situation that could further dampen the country's economic recovery in the coming months.
After the release of the U.S. Department of Labor report, Republicans also took this to criticize the Biden administration's $1.9 trillion rescue bill. Biden's Democratic Party passed the bill in March 2021 without Republican support. The bill, which allows every American to receive $1,400 in cash assistance, also includes: adding an additional $300 to weekly unemployment benefits, expanding unemployment benefits and extending the application until September 6; Reopening provides about $170 billion etc.
Biden once commented that the bill "will rebuild the backbone of this country" and revive the economy.However, at present, the effect seems to be less than ideal.
In this regard, Biden defended that the plan provided necessary assistance to support the development of the US economy in 2022. It believes that the lower-than-expected nonfarm payrolls report highlights the need for the massive infrastructure spending and household support programs it is promoting.
Source: China News Service
