In August 2022, five large Chinese state-owned companies announced plans to delist from US stock exchanges to avoid US scrutiny and comply with domestic regulations.
Chinese Manufacturing Companies Moving to the US
As corporations like Microsoft, Dell, Stanley Black & Decker, Blizzard Entertainment, and Airbnb pull back on China, dozens of others are shifting their global footprints, sighting everything from supply chain concerns to concentration risks. Investors from BlackRock to JC2 Ventures, and the world's top Tech.
Additionally, 15 US companies were added to the export control list: Leidos, Gibbs & Cox Inc., IP Video Market Info Inc., Sourcemap Inc., Skydio Inc., Rapid Flight LLC, Red Six Solutions, Shield AI Inc., HavocAI, Neros Technologies, Group W, Aerkomm Inc., General Atomics Aeronautical Systems Inc., General Dynamics Land ...
At the start of 2021, China Telecom, China Unicom, and China Mobile were delisted by the N.Y.S.E. to comply with an executive order that barred Americans from investing in companies with ties to the Chinese military.
The value of your shares may also drop. However, if the company delisted voluntarily because it is going private or being merged with another company, you might receive cash for your shares or shares in the purchasing company. Understanding the reason for the delisting and how it may affect your shares can be helpful.
China benefits from lower labor costs, economies of scale, and faster supply chain networks. These factors make production more affordable compared to Western countries, where labor and compliance costs are higher.
Carmakers GM, Tesla and Ford lead list of US companies in China exposure: report.
Yes, China has one of the world's highest homeownership rates, often cited as around 90% or even higher (87% urban, 96% rural), driven by post-1998 housing reforms that privatized public housing and strong cultural emphasis on property as stability and a prerequisite for marriage. However, this figure can be misleading; it primarily counts those with urban household registration (hukou), often excluding many migrant workers, and while ownership is high, many face significant mortgage burdens, and the land itself remains state-owned.
China owns approximately $859.4 billion in U.S. debt, about 2.6% of the total U.S. debt. Japan surpasses China as the top foreign holder of U.S. debt, with $1.1 trillion.
J.P. Morgan received approval from the China Securities Regulatory Commission to increase its stake in J.P. Morgan Futures Company Limited to 100%, making it the first futures company in China to be fully owned by a foreign institution.
About 33,000 acres of the Oregon land owned by Chinese billionaire Tianqiao Chen and his investment firm is west of Bend, near the Deschutes National Forest. A Chinese billionaire and a California timber family have become among the largest private landowners in the U.S. following major purchases of Oregon forests.
As the largest-ever acquisition of an American business by a Chinese business, WH Group's purchase of Smithfield Foods was undoubtedly a landmark moment in American business and agriculture. The company's foreign ownership has made it a lightning rod for criticism.
As of the end of 2022, data indicates the operation of around 5,000 Chinese-owned companies in the United States, spanning diverse industries such as technology, manufacturing, finance, and real estate.
Some companies are shifting production from China to Southeast Asia and the US to diversify supply chains and mitigate geopolitical risks. Japanese firms are attracted to the US due to subsidies and strong economic growth, though they worry about political instability and protectionism.
The United States is richer than China when comparing total economic output (nominal GDP) and individual wealth (GDP per capita), but China leads in Purchasing Power Parity (PPP) GDP, reflecting its massive domestic market's buying power, and has a larger overall economy by some measures, though the US remains ahead. The US has significantly more millionaires and billionaires, showing greater wealth concentration.
China's "0.1% rule" refers to its 2025 export controls that require licenses for products containing 0.1% or more (by value) of certain Chinese-origin rare earth elements or technologies, extending China's regulatory reach globally to materials like magnets, semiconductors, and defense components, even if manufactured outside China. This extraterritorial control, similar to the U.S. Foreign Direct Product Rule, aims to leverage China's dominance in rare earth supply chains for strategic influence, impacting high-tech industries by requiring approval for exports and potentially disrupting global supply chains.
Major manufacturing nations
According to the United Nations Industrial Development Organization (UNIDO), China is the manufacturer with the highest output worldwide in 2023, producing 28.7% of the total global manufacturing output, followed by the United States of America, Germany, Japan, and India.
Nasdaq listing rules require companies to maintain a closing bid price above $1.00 per share (the “bid price rule”). A company violates the bid price rule when its closing bid price is less than $1.00 for 30 consecutive trading days.
If you don't tender shares
They will remain in your demat account even after they are delisted. However, these shares will then become illiquid. You won't be able to sell them on NSE or BSE. It becomes challenging to find a buyer, and you'll find the pricing opaque.
Usually, once the stocks are delisted, you receive either cash payment, or stocks of the new company, or both, or none in exchange for the shares you previously held.