WASHINGTON — The Coalition for a Prosperous America (CPA) today welcomed the announcement by the New York Stock Exchange (NYSE) that it would follow the law and delist three Chinese telecom carriers: China Mobile Ltd., China Unicom Ltd., and China Telecom Corp. The move stems from Executive Order 13959 signed by former President Donald Trump, and maintained by President Biden, that prohibits U.S. investments in Chinese firms that are listed on the U.S. Department of Defense list of companies that are supporting China’s military-industrial complex.
“For decades, the Chinese Communist Party — with Wall Street’s help — has exploited U.S. capital markets and American investors to build its national champion Chinese companies that help modernize the capabilities of the People’s Liberation Army,” CPA Chair Zach Mottl said. “Thankfully, the NYSE is doing the right thing by following the law and delisting these China telecom companies. Going forward, the Biden administration must continue to expand Executive Order 13959 so that U.S. capital markets are cleared of any and all companies that support the CCP military-civil fusion strategy.”
Executive Order 13959 is the first ever capital market sanction ever imposed against the CCP. These companies raise trillions of dollars of capital by selling securities to American investors on the NYSE and other exchanges around the world. Under the EO, no American can invest in these companies anywhere in the world, including through Wall Street’s favorite loophole, exchange traded funds.
“After resistance, it is good news that the NYSE will follow the law and delist three Chinese telecom companies,” said Michael Stumo, CEO of CPA. “It is unconscionable that U.S. dollars are funding Chinese military companies that are building weapons to kill Americans on the battlefield and that threaten U.S. national security. For too long, the U.S. government has sat idly by as Wall Street funneled U.S. dollars to Chinese companies and their subsidiaries that are involved in the Communist Party’s military, espionage, human rights violations, and ‘Made in China 2025’ industrial policy. The NYSE delisting should send a clear signal that the days of inaction are over.”
Last month, CPA welcomed Senate legislation that would require the State Department — in consultation with the Office of the Director of National Intelligence and Treasury — to produce an independent report on “the risks posed to the U.S. by the presence in U.S. capital markets of companies incorporated in China.” CPA also highlighted how China exploits U.S. capital markets and retail investors to fund companies connected to the Chinese military and its “Made in China 2025” industrial strategy.
