The Norwegian Wealth Fund's decision has sparked tensions in China

While global companies and funds announced sanctions against Russia, the decision of the Norwegian Wealth Fund to exit the Chinese sportswear company due to human rights violations put pressure on the Chinese markets.

The $1.3 trillion Norwegian Wealth Fund has decided to exit Chinese sportswear company Li Ning, citing human rights violations in Xinjiang and arguing that the risk has increased.

The company's shares fell more than 11 percent, raising concerns about the exit of long-term investors from Chinese assets.

The Chinese CSI 300 and Hang Seng indices fell by more than 3 percent with the effect of the news.

Core Pacific Yamaichi Research Manager Castor Pang stated that the Norwegian Wealth Fund's decision to exit Li Ning raises concerns about the approach to Chinese and Hong Kong assets in the future.

The US issued a Russian warning to Chinese companies

U.S. Secretary of Commerce Gina Raimondo stated that measures could be taken against Chinese companies that challenge the U.S. sanctions against Russia.

In an interview with the New York Times, Raimondo stated that if Chinese companies ignore US export regulations, they risk losing access to the American equipment and software they need to manufacture their products.

Pointing out that Russia will be in search of other countries to circumvent US sanctions and export controls, Raimondo warned that Chinese companies that continue to supply Russia will be subject to heavy penalties.

The US Department of Commerce announced that after Russia's attack on Ukraine, a series of export restrictions were imposed that would prevent the country from accessing the technologies and other items it needs to maintain its military capabilities.

It has been reported that the restrictions will prevent Russia from accessing important technological inputs and cover technologies such as semiconductors, computers, telecommunications products, information security equipment, lasers, and sensors that are planned to be exported to Russia.

It was noted that the restrictions in question include products made in the USA as well as foreign products made using US equipment, software, and blueprints.