The five Chinese state-owned enterprises are PetroChina, China Life Insurance, Sinopec, Aluminum Corporation of China and Shanghai Petrochemical Corporation. Five companies announced separately that they would apply for delisting of American depositary shares from the New York Stock Exchange this month. Among them, the delisting announcements of PetroChina, China Life and Sinopec have similar language and were issued within 30 minutes. After the delisting, the five companies will continue to trade on the stock markets in Hong Kong and mainland China.
In May, the five companies were flagged by U.S. securities regulators as not meeting the regulator’s auditing standards. Washington has been demanding full audit transcripts of U.S.-listed Chinese companies, but China, citing national security grounds, has barred foreign agencies from inspecting audit documents of Chinese accounting firms.
However, observers generally believe that the delisting of these five state-owned enterprises is not limited to audit considerations, which means that China and the United States have begun to decouple in the financial field.
The commentator Yokogawa analyzed in the program that this delisting is a large state-owned enterprise. Although it is said to be the decision of the enterprise itself, it should reflect the intention of the CCP. Decoupling of the United States and reducing the influence of the United States on the Chinese economy may be a trend in the future.
“Light Media” believes that this is a major signal, showing the direction of Sino-US relations and China‘s future, the CCP’s 40-year reform and opening-up line has ended, and the Sino-US policy of “fight but not broken” has failed. “Light Media” raised two questions in this regard: Is it possible for China and the United States to break off diplomatic relations? Will the US restore diplomatic relations with Taiwan?
From the media, Ma Ju proposed: Xi Jinping has been thinking about how Chinese companies, under the control of American and Western capital, can prevent hundreds of billions of dollars from being seized at critical moments like Russian companies and capital. These five The delisting of state-owned enterprises is the CCP’s response. It has taken the initiative to start decoupling with the United States. Most importantly, why is Xi Jinping eager to guard against Western sanctions? What is he going to do? Attacking Taiwan is one possibility.
Japan’s Kyodo News quoted a source on the 12th as saying that during the CCP’s military exercise against Taiwan, Xi Jinping personally ordered five missiles to be fired into Japan’s exclusive economic zone.
The report said the Chinese military had submitted two plans for military exercises to Xi, one covering Japan’s exclusive economic zone and the other avoiding relevant waters to avoid damaging Sino-Japanese relations. Xi Jinping finally chose the plan to cover Japan’s economic zone, one of the purposes is to warn the Japanese government not to intervene in the Taiwan Strait issue.
However, if Kyodo News’s revelations are true, it is obvious that Xi Jinping’s decision will expand the situation. There may be a consideration behind Beijing’s troubles for itself, that is, when the 20th National Congress encounters resistance to re-election, it seeks foreign military conflicts.
Regardless of whether the CCP will use force against Taiwan, the delisting of the five major state-owned enterprises is at least considered to be a further step in the CCP’s step towards seclusion. Locking down the country is considered the option that best guarantees Xi Jinping’s re-election and protects the CCP regime.
Yan Chungou, a veteran Hong Kong columnist, said in an article in September last year that the CCP quickly turned to the left and returned to the closed-door country in the Mao Zedong era. This is a major strategic shift based on anticipation of the situation at home and abroad. There is internal instability. Only by fully retreating and sticking to it can we have a chance to “survive”. Therefore, this major strategic shift cannot be regarded as Xi Jinping’s personal impulse. This is the consensus of the top leaders of the party.
The founder of InsightFan.com posted on Facebook in August last year, titled “There is no madness, China is just entering a “wartime economy”. In terms of categories, the cognition in Xi Jinping’s mind should be like this: a small North Korea, supported by me, can live in the world for 70 years with the support of some indiscriminate nuclear weapons. Locking down the country and decoupling from the United States is not difficult to imagine for another 100 years, not to mention that the US order is now full of loopholes.