The New York Stock Exchange (NYSE) announced on Dec. 31 that it is in the process of delisting three Chinese telecom companies with ties to the Chinese military.
The three state-owned companies—China Mobile Ltd., China Telecom Corporation Ltd., and China Unicom (Hong Kong) Ltd.—will see their securities suspended from trading between Jan. 7 and Jan. 11, according to a statement. The delisting proceedings were made in compliance with President Donald Trump’s executive order (E.O.) 13959.
Trump issued the order (pdf) in mid-November, banning U.S. investments in Chinese companies designated by the Pentagon as having ties to the Chinese military, citing threats to U.S. national security.
Earlier this week, the Trump administration extended the investment ban to “any subsidiary of a Communist Chinese military company.” The extension was announced by the Treasury Department, which also stated that it planned to publicly list subsidiaries that were “50 percent or more owned” or “determined to be controlled” by Chinese military companies.
This year, the Pentagon identified a total of 35 Chinese companies to have links to the Chinese military, formally known as the People’s Liberation Army. The designations were made under a requirement under section 1237(b) of the National Defense Authorization Act (NDAA), the annual defense spending bill.
The three Chinese telecom companies were among the designated 35 companies. Other Chinese companies included telecom giant Huawei, semiconductor chipmaker SMIC, defense contractor AVIC, railcar-maker CRRC, and surveillance camera maker Hikvision.