The Significance of delisting Chinese IT companies from the U.S. stock market

Lee Wang Hwi 

(leew@ajou.ac.kr) 

Professor, 

Ajou University 

English Abstract

In March 2021, China National Offshore Oil Corporation was delisted from the New York Stock Exchange (NYSE). Then, in May, China Mobile, China Telecom, and China Unicom were delisted from the NYSE. The purpose of delisting Chinese companies from the U.S. is to reduce not only China’s share and influence in the U.S. capital market but also to protect U.S. industries for national security. Information Technology (IT) companies are particularly sanctioned because IT is considered a key industry in the U.S.-China competition. Currently, U.S. economic sanctions can only be imposed on the Chinese military-industrial complex and military-private convergence companies. Therefore, there were only a few delistings, and the impact of imposing sanctions is yet minimal.