China Telecom eyes $8.4 bil Shanghai IPO, world's biggest, in 2021

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Complacency encumbers advancement. Credit the former USSR in sharpening the US iron. There will be Sputnik moments in the relationship between the US and China. This will be an incentive for the US but a better route would be to stop fighting each other and to start working together.

Many of China's biggest tech and telecom firms listed their shares on the more developed U.S. stock markets in the 2000s as they sought access to funding, but the tide has been turning.

The tide is indeed turning. It’s like the waning years of the Celtics–Lakers rivalry and the “Bad Boys” Pistons. The Bulls are up and coming. This is what’s ahead:

Authorities have been pushing in recent years to instead encourage such companies to list on its domestic exchanges in Shanghai and Shenzhen, as well as Hong Kong, a trend expected to be accelerated by an ongoing government campaign to strengthen control over its major tech giants.

What they’re doing is to take actions that will indirectly or directly diminish US and western influence. One action will be to make US investors risk their investment in Chinese companies which have gone public in the US. This seems to be a part of China's strategy: the CCP understands that the financial sector has more influence with US administrations than other sectors, so it is determined to deliver pain to Wall Street by cutting off the flow of Chinese companies listing in the US. 

China Telecom was delisted by the New York Stock Exchange in January along with fellow state-owned telecoms firms China Mobile and China Unicom following an executive order by former president Donald Trump.

Credit Trump with this you might say? It doesn’t matter who initiated the decoupling; the end result is many Chinese companies listed in the US will choose to delist in the US and relist in Hong Kong, Shenzhen and Shanghai. This means that Chinese financial firms will thrive within the Chinese market, without having to go overseas.  Another tide turn will be digital currency.

China is in the midst of a digital transformation drive, and proceeds from the Shanghai listing will be used for 5G and cloud-network infrastructure, among other initiatives, the exchange filing said.

The next shift will be the introduction of the digital yuan in a year or two which the US will somehow try to resist. The digital yuan is designed to promote activity among Chinese and Chinese companies. There is also Russia and China oil deals done without the dollar. These are moves that add up.

In Chess, the US plays with a queen; China pushes pawns to form a tight structure that chokes. Cutting off US investors from the China market and the introduction of the digital yuan are the economic equivalents of Sputnik moments. The US is not prepared for them because they’re busy fighting each other not to mention yet another election coming up with Trump as a candidate. Meanwhile the ship keeps sailing.

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