China's Foreign Ministry spokesperson Wang Wenbin. Photo: VCG

The decision of global index publishers, FTSE Russell and S&P Dow Jones to drop more Chinese companies from their indexes will only damage their own credibility and representativeness, and will not affect international investors' desire to participate in China's development, China's Foreign Ministry spokesperson said on Friday. 

FTSE Russell said that it will drop 20 more Chinese companies from its indexes after an updated US executive order prohibited US companies from investing in Chinese companies that it claims to have so-called military ties. FTSE Russell said the companies will be deleted on July 28.

In early June, US president Joe Biden signed a new order replacing an earlier order issued under Donald Trump. The new order prevents US companies from investing in Chinese ones with alleged ties to the defense or surveillance technology sectors. 

According to Wang Wenbin, spokesperson of the Foreign Ministry, the US' behaviors go against the international principles of market competition that it claims to hold. It is against the development of the times, and will damage the interest of international investors as well as the image of the US. 

"China strongly opposes the politicization of trade issues by the US, including abusing its national power and the concept of national security to oppress Chinese companies," Wang said. 

Wang also added that the Chinese capital market has been increasingly open. To leave out some individual companies from some indexes will not bar international investors from investing in those companies in other ways. 

Global Times