Trump signs bill to force audit reviews of Chinese companies

Syed Umarullah HussainiWeb Editor

19th Dec, 2020. 02:44 pm
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The US President Donald Trump has signed a bill on Friday that aims to target Chinese companies and delist them from the National Stock Exchange.

According to the media reports, the bill’s measures are clearly intended to target Chinese companies, such as Alibaba Group, Pinduoduo and PetroChina. These companies have been given a time period of three years to complete the requirements before facing the big loss.

Media reports said that the bill titled as “Holding Foreign Companies Accountable Act” has made it mandatory that the companies will be removed from the US Stock Exchange if American auditors are not allowed to review the financial inspections.

The Bill stated that the U.S. Public Accounting Oversight Board to review their financial audits.

The bill may take a hard line against China and could raise tensions on a variety of fronts between the world’s two largest economies.

It may be recalled that in October this year, the Trump administration lodged an appeal against the ruling of the World Trade Organization (WTO) that found US tariffs imposed on China in 2018 violated global trade rules.

The panel of the organization had ruled that the US had not justified why the tariffs imposed after a Section 301 investigation against China were a justifiable exception to its obligations.

The US delegation in its appeal said that the panel report “reflects a major, missed opportunity for the WTO to begin to address the most serious problem faced by every member that seeks a balanced and fair world trading system: namely, aggressive, state policies that seek to dominate broad industrial sectors.”

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