Tensions between the United States and China are another factor. It says the New York Stock Exchange (NYSE) will exclude other Chinese companies from trading CNN stations. Shares of China National Offshore Oil Corporation (CNOC) traded lower on Tuesday, March 9 at NYSE.
Representatives of the New York Stock Exchange said they wanted to comply with former US President Donald Trump’s order last November to remove the CNOC. It prohibits the US military from investing in companies whose government suspects partial or full affiliation with the Chinese military.
The NYSE has already rejected three Chinese companies on Trump’s orders. In January, it said it would trade shares of telecom companies China Mobile, China Telecom and China Unicom.
The Chinese Ministry of Commerce responded by dismissing three companies in January, announcing that it would take the necessary, unspecified countermeasures. It also called on the United States to return to mutually beneficial solutions to trade relations with China.
As of next week, the laid-off oil company has been trading on the NYSE since 2001. It is the largest marine oil producer in China and the third largest in any Chinese oil company.
Responding to the announcement of the delisting, he expressed regret over the close of the New York Stock Exchange. He also warned the Hong Kong Stock Exchange that the withdrawal from the NYSE would negatively affect the company’s prices and volume in the fast-growing stock market in Asia.
This is not the US government’s first major crackdown on the CNOC. Shortly before President Trump’s departure in January, the U.S. Department of Technology added him to the list of companies disconnected from the U.S. technology supply. The then Commerce Secretary, Wilbur Rose, described the CNOC as a tyrant serving in the Chinese military. He accused other countries of restricting oil exploration in the South China Sea.
The Chinese government then responded by condemning the US decision. According to him, the United States is abusing its power for its own benefit.
The administration of the new US President Joe Biden said in January that it had no plans to make concessions to China.
In a telephone conversation with Chinese President Xi Jinping, Biden expressed his concern about the Chinese government’s forced and unfair economic practices. He highlighted its interventions in Hong Kong, human rights abuses in the Xinjiang Uyghur Autonomous Region and the courageous promotion of Chinese interests in Taiwan and other regions.
According to financial analysts, it is unlikely that the new US president will ease trade ties with China. However, compared to his predecessor, Biden introduced a less predictable, diplomatic means of communication.