China warned of volatility in international markets from any “split” between their country and the US after sources said the Trump administration is considering delisting Chinese companies from US stock exchanges..
The move will herald a radical escalation of U.S.-China trade tensions.
It will be part of a broader effort to curb US investment in Chinese companies, sources said..
Chinese Foreign Ministry spokesman Geng Shuang said he took note of the delisting reports and the response from the US Treasury Department, which says there are no plans to block Chinese firms at this time..
Sino-US trade and financial cooperation is mutually beneficial, Geng said at a daily briefing.
«Exerting maximum pressure and even seeking to forcibly sever Sino-US relations will harm the interests of Chinese and American companies and people, as well as create turmoil in financial markets and threaten global trade and economic growth.”, – he added.
Geng Shuang hopes the US will work with China to improve economic and financial cooperation and take a constructive stance towards resolving differences.
Stocks in mainland China fell to their lowest level in nearly a month on Monday amid news of possible delisting.
The news comes on the eve of celebrations in Beijing marking the 70th anniversary of the founding of the People’s Republic of China.
The United States and China have been in an escalating trade war for over a year. Both sides imposed punitive tariffs on hundreds of billions of dollars of each other’s goods, stirring up financial markets and threatening global growth.
In June, US lawmakers introduced a bill requiring Chinese companies listed on US stock exchanges to comply with regulatory oversight, including granting access to audits, or be delisted..
Chinese authorities have long been reluctant to allow foreign regulators to inspect local accounting firms, including member firms of the International Accounting Network. «big four», citing national security considerations.
China and US to resume high-level talks next week in Washington.
PRC hopes Beijing and Washington will resolve their trade dispute “with a calm and rational attitude”, Vice Minister of Commerce Wang Shouwen, who is part of China’s diploma team, said on Sunday.