Chinese shares might be delisted from US stock exchanges
What's the story
In a major escalation of the ongoing US-China trade dispute, US Treasury Secretary Scott Bessent, has hinted that Chinese stocks could be removed from American exchanges.
Speaking to Fox Business, Bessent, when asked about possible action against Chinese firms, said "everything is on the table."
This comes after China imposed an 84% tariff on American goods in retaliation to new US tariff measures.
Market reaction
Impact on US markets and investor confidence
Bessent's comments have caused a major decline in US stock futures, reflecting increased fears of a prolonged and escalating trade war between the two countries.
Analysts have cautioned that this could lead to a pullback of investors and restrict Chinese companies' access to capital.
Such companies may be compelled to look for other markets such as Hong Kong or Shanghai.
Critique
Bessent criticizes China's retaliatory tariffs
Bessent has also criticized China's retaliatory tariffs as "unfortunate" and accused Beijing of being one of the "worst offenders in the international trading system."
He also cautioned against China manipulating its currency to offset the impact of tariffs, saying that such actions would only provoke other nations to increase their tariffs.
Currency crisis
China's currency weakens amid trade tensions
Amid the intensifying trade war, China's central bank has devalued the Yuan's daily reference rate for the fifth consecutive session.
This follows the offshore Yuan's fall on Tuesday to its lowest since 2010 when the offshore trading system started.
Bessent had earlier termed China's tariff retaliation a "big mistake" during a CNBC interview and claimed US has a strategic advantage as it is less dependent on exports to China.
Negotiations
US to conduct tariff talks with 70+ countries
Bessent has announced plans to spearhead talks with 70+ countries to form new tariff agreements.
He said China continues to be a "significant outlier" with its retaliatory attitude.
China's commerce ministry, in turn, has added 12 US firms to its export control list and six others, including Shield AI and Sierra Nevada Corporation, to its unreliable entities list.
These entities are now barred from China-related trade, export-import activities, and investments.