GOOD MORNING FROM LONDON #187 – POST #2
The SCMP reports that China was very irritated when Trump issued an administration executive order to require the New York Stock Exchange to delist China’s oil giant – CNOOC. In response, China’s Ministry of Commerce introduced its own Unreliable Entity List in September 2020 which can target foreign financial entities that cause damage to Chinese investors.
A specialised financial court is now being set up in Beijing to hear lawsuits against foreign financial entities that have, allegedly, damaged “the legitimate interests” of Chinese domestic investors. A growing clash between courts in the West + in China is taking place after China’s Wuhan Intermediate Court issued an injunction over a dispute between China’s smartphone giant, Xiaomei, + US firm, InterDigital over licensing fees.
In January 2021 China’s fightback went one step further with new rules that would punish global companies for complying with tightening US restrictions against Chinese businesses. Confrontation v Co-operation. This is part of the struggle as the rising China confronts the declining US. The temperature is rising. Who is your money on?