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Trump signs bill that could kick Chinese firms off U.S. stock exchanges

Published 12/18/2020, 04:32 PM
Updated 12/18/2020, 04:55 PM
© Reuters. FILE PHOTO: U.S. President Donald Trump departs on travel to West Point, New York from the South Lawn at the White House in Washington

© Reuters. FILE PHOTO: U.S. President Donald Trump departs on travel to West Point, New York from the South Lawn at the White House in Washington

WASHINGTON (Reuters) -President Donald Trump on Friday signed legislation that would kick Chinese companies off U.S. stock exchanges unless they adhere to American auditing standards, the White House said, giving the Republican one more tool to threaten Beijing with before leaving office next month.

"The Holding Foreign Companies Accountable Act" bars securities of foreign companies from being listed on any U.S. exchange if they have failed to comply with the U.S. Public Accounting Oversight Board's audits for three years in a row.

While it applies to companies from any country, the legislation's sponsors intended it to target Chinese companies listed in the United States, such as Alibaba (K:BABA), tech firm Pinduoduo (NASDAQ:PDD) Inc and oil giant PetroChina Co Ltd.

The legislation, like many others taking a harder line on Chinese businesses, had passed Congress by large margins earlier this year. Lawmakers - both Democrats and Trump's fellow Republicans - echo the president's hard line against Beijing, which became fiercer this year as Trump blamed China for the coronavirus ravaging the United States.

The act would also require public companies to disclose 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.

© Reuters. FILE PHOTO: U.S. President Donald Trump departs on travel to West Point, New York from the South Lawn at the White House in Washington

Chinese authorities have long been reluctant to let overseas regulators inspect local accounting firms, citing national security concerns.

Latest comments

don't forget to kick off apple, walmart, target.... just about all their products are made in china.
Sold MOMO this past week and bought Bitcoin with the money.
This is a good thing.... this just means China's Exchange will gain full steam ahead... 5 to 10 more years, China will be take over the New York Exchange to become the defacto market...
real patriot
Its time Trump signs his divorce papers and his house mover contract.....leave other papers unsign
Trump is correcting his mistake that allowed Chinese company listing without compliance to USA accounting standards!! How did that happen? Trump was sleeping & neglecting his job
please show evidence or point to articles we can use to make our own judgement
please show evidence or point to articles we can use to make our own judgement
good for beijing they want company to list in China instead
That’s why the sitting President lost his votes in Chinese American community states such as NY and CA? Biden wins ; China wins. When out of politics, it’s always goood to have more friends rather than enemies. That was actually a 2020 election of Trump vs. Anti-Trump. Wish President successfully keep his popularity and make a comeback in 2024
We didnt rule out there was a fraud but Trump adminisrtation needs to have solid evidence and fight through the supreme court. This would be a different story and it can continue without making a danage to the US democracy. That’s his right , protected by law.
There’s not an absolute that China wins in everything. It just shows how incompetent Trump was in dealing with non-property related businesses! Trump lost to China coz he’s out of his depth and his team is useless. Nothing to gain for Biden.
2024? He would be lucky if he isn't jailed the next 4 years lol
Long overdue
The ony two thumbs down must own chinese stocks lol. How is thos bad? Follow the rules which are reasonable and you wont be kicked off
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