Washington:
President Donald Trump on Friday signed legislation that would kick Chinese businesses off US stock exchanges unless they adhere to American auditing requirements, the White House stated, providing the Republican a single more tool to threaten Beijing with prior to leaving workplace subsequent month.
“The Holding Foreign Companies Accountable Act” bars securities of foreign businesses from getting listed on any US exchange if they have failed to comply with the US Public Accounting Oversight Board’s audits for 3 years in a row.
While it applies to businesses from any nation, the legislation’s sponsors intended it to target Chinese businesses listed in the United States, such as Alibaba, tech firm Pinduoduo Inc and oil giant PetroChina Co Ltd.
The legislation, like lots of other individuals taking a tougher line on Chinese organizations, had passed Congress by big margins earlier this year. Lawmakers – each Democrats and Trump’s fellow Republicans – echo the president’s tough line against Beijing, which became fiercer this year as Trump blamed China for the coronavirus ravaging the United States.
The act would also demand public businesses to disclose irrespective of whether they are owned or controlled by a foreign government.
Chinese officials have dismissed the measure as a discriminatory policy that politically oppresses Chinese firms.
Chinese authorities have lengthy been reluctant to let overseas regulators inspect regional accounting firms, citing national safety issues.
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