Published 11:35 IST, August 7th 2020
Trump administration considering proposal to crackdown on Chinese companies: Reports
A new report, on August 6, revealed that the Trump administration was considering a proposal to crack down on Chinese companies that are listening in the US.
A new report, on August 6, revealed that the Trump administration was considering a proposal to crack down on Chinese companies that are listening in the US and do not follow the America audit requirements. As per an American media outlet, all the Chinese companies listed on American stock exchanges are required either to be subjected to audit by US regulators or be delisted. In order to comply with the requirements, Chinese auditors are needed to share their work papers with the Public Company Accounting Oversight Board, a specialized audit regulator overseen by the US government.
However, the latest report stated that all Chinese firms which are yet not public but plan to do initial public offerings would have to comply before they can go to the New York Stock Exchange or Nasdaq. "These recommendations are consistent with bipartisan congressional legislation and are centred on the importance of a level playing field," US Securities and Exchange Commission Chairman Jay Clayton wrote in the report.
'Part of crackdown'
In May, the US Congress passed legislation which the report considers as a step towards a crackdown on Chinese companies. The legislation asserted that all Chinese companies which do not comply with the regulations within three years would be delisted. “The latest move of Trump Administration is part of its effort to crack down on Chinese companies”, the report said.
Trump administration has been quite vocal about its opposition to the Chinese companies, especially in the times when US-Chinese tensions have escalated. Meanwhile, the US Senate on August 6 unanimously passed a bill banning the use of Chinese-owned video application TikTok on government devices. The bill will now go to President Donald Trump to be signed into law. While taking to Twitter, Senator Josh Hawley informed about the decision and thanked Senator Rick Scott for his support.
Image credits: AP
Updated 11:35 IST, August 7th 2020