Trump expected to sign bill passed by US House aimed at targeting Chinese firms

United States House of Representatives has passed a law that would delist Chinese companies off US stock exchanges if y do t comply with auditing regulations. Holding Foreign Companies Accountable Act, co-authored by Reps John Kennedy and Chris Van Hollen would also require Chinese firms to reveal if y are owned or controlled by any foreign government. Even though bill still requires approval of US President Donald Trump, White House has reportedly said on December 2 that it would happen shortly.

Amid soaring tensions between US and China, latest move by Washington coincides with broader restrictions on Beijing during final months of outgoing Trump administration. Apart from bill scrutinising Chinese firms, US government on Wednesday even moved to ban cotton imports from a company that it says uses forced labour of detained Uighur Muslims in Xinjiang. 

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Bill expected to have less impact on China

bill targetting Chinese companies is reportedly expected to have little effect over short term because foreign firms are only banned if y fail to comply with audits for three years in a row. newly passed bill by US House was also welcomed by American Securities Association but urged American government to act in a more swift manner by delisting n-compliant companies by mid-2021. Even though its sponsors planned on targeting China, legislation is applicable to all public-listed companies irrespective of any specific country.

One of bill’s authors, Republican Senator John Kennedy said, “US policy is letting China flout rules that American companies play by, and it’s dangerous. Today, House joined Senate in rejecting a toxic status quo.” Meanwhile, passing of bill was hailed as "good news" by or co-author, Maryland Senator. Kennedy had also said that China is 'exploiting' US workers. As of October 2020, Us exchanges has listed at least 217 Chinese companies including Alibaba and KFC China operator Yum China that have recently carried out secondary listings in Hong Kong.

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