(TargetLiberty.org) – President Trump has been diligent in his campaign to protect the US economy against predatory Chinese businesses. Now, he’s signed a new law to hold Chinese companies that don’t follow stock exchange accountable rules accountable.
On December 18, the president signed the Holding Foreign Companies Accountable Act. This gives foreign companies listed on US stock exchanges three years to comply with our auditing oversight rules — and if they don’t, they can be delisted. Officially, the law is aimed at all foreign companies, but in reality, most of them already comply. The exception is China, because Chinese law prohibits their companies from following US auditing rules – and in 2013, Joe Biden gave them a waiver that Trump is now axing.
Trump admin plans to scrap a 2013 pact between US, #China #auditing authorities soon, @StateDept official says, a move that could foreshadow a broader crackdown on US-listed Chinese firms under fire for sidestepping American disclosure rules. #IPO https://t.co/11ugUwoNO9
— Eunice Yoon (@onlyyoontv) July 14, 2020
Over 200 Chinese companies, with a combined value of about $2.2 trillion, are listed on US exchanges. Three years from now, unless China changes its laws, they all face being delisted — a potential disaster for those businesses.
The Communist country protested over the weekend, demanding “fair treatment” for its corporations. Of course, that’s exactly what President Trump is offering them; the chance to compete fairly by following the same rules as everyone else. What they want is special treatment, and they won’t be getting it.
Copyright 2020, TargetLiberty.org
