Donald Trump has criticized China for what he calls unfair trade practices. (Archive)
Washington:
President Donald Trump signed legislation on Friday that would kick Chinese companies off American stock exchanges unless they adhere to American auditing standards, the White House said, giving the Republican one more tool to threaten Beijing before leaving office next month.
The “Foreign Company Liability Act” prohibits the securities of foreign companies from being traded on any US stock market if they have not met audits by the US Public Accounting Oversight Board for three consecutive years.
While it applies to companies from any country, the backers of the legislation were intended to target Chinese companies listed in the United States, such as Alibaba, technology company Pinduoduo Inc, and oil giant PetroChina Co Ltd.
The legislation, like many others that take a tougher line on Chinese companies, had been passed by Congress by wide margins earlier this year. Lawmakers – Trump’s Democrats and Republicans alike – echo the president’s tough line against Beijing, which grew fiercer this year when Trump blamed China for the coronavirus ravaging the United States.
The law would also require public companies to disclose whether they are owned or controlled by a foreign government.
Chinese officials have dismissed the move as a discriminatory policy that politically oppresses Chinese companies.
Chinese authorities have long been reluctant to allow foreign regulators to inspect local accounting firms, citing national security concerns.
(This story has not been edited by NDTV staff and is automatically generated from a syndicated feed.)
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