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President Donald Trump speaks about the election after presenting the Medal of Freedom to former college football coach Lou Holtz in the Oval Office of the White House December 3, 2020 in Washington, DC.
Doug Mills | Getty Images
President Donald Trump on Friday signed a law that would kick Chinese companies off U.S. stock exchanges unless they adhere to U.S. auditing standards, the White House said, giving the Republican one more tool to threaten Beijing ahead of leave office next month.
The Holding Foreign Companies Accountable Act prohibits securities of foreign companies from being listed on a US stock exchange if they have failed to comply with US Public Accounting Oversight Board audits for three consecutive years.
Although it applies to companies in all countries, the promoters of the legislation intended to target Chinese companies listed in the United States, such as Alibaba, technology company Pinduoduo and oil giant PetroChina.
The legislation, like many others taking a harder line on Chinese companies, was passed by Congress with wide margins earlier this year. Lawmakers – Democrats and Trump’s Republican colleagues – echo the president’s hard line against Beijing, which has grown fiercer this year as 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 rejected the measure as a discriminatory policy that politically oppresses Chinese companies.
Chinese authorities have long been reluctant to let foreign regulators inspect local accounting firms, citing national security concerns.
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