The New York Stock Exchange delisted three Chinese telecom giants following President Donald Trump's crackdown on companies linked to the Chinese military.
The exchange announced that it will cease trading for China Telecom, China Mobile, and China Unicom as early as January 7. The three firms were the first companies removed from the New York Stock Exchange as a result of President Trump's November executive order banning the trading of any public companies that the U.S. government believes are owned or controlled by the Chinese military.
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The order is part of a larger push targeting Chinese companies that trade in U.S. markets. In December, Congress passed legislation with bipartisan support that will require Chinese companies to comply with American accounting standards or face delisting—an oversight requirement opposed by Beijing.
In response to the delisting, the Chinese government has threatened to take "necessary countermeasures" to defend the interest of its corporations. The shares of the three delisted companies have dropped since the news broke on December 31. China Telecom suffered the worst losses in the wake of the announcement, losing 7 percent of its value in the last five days. China Unicom's shares dropped 6 percent, while China Mobile lost 5 percent.
The executive order is expected to affect more than 30 Chinese companies. Analysts predict that state-owned oil companies might be next on the chopping block, given their close ties to the Chinese military.