US Senate Passes Bill That Could Block Chinese Companies From Stock Exchanges

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In September 2019, reports emerged suggesting that the Trump administration was considering the possibility of limiting US investment into the Chinese economy and delisting Chinese companies from US stock exchanges. The White House, however, dismissed the reports as untrue.

On Wednesday, the US Senate passed a law that could prevent many Chinese companies from listing their shares on US exchanges.

The bill, promoted by Republican Senator John Kennedy and Democratic Senator Chris Van Hollen, will require companies to confirm that they are not owned or controlled by foreign governments.

According to the bill, companies will have to follow US standards for audits and other financial regulations. Previously, Chinese companies did not have to meet these requirements in order to operate in the US exchanges.

The law could be applied to any foreign company that seeks to gain access to US capital. However, lawmakers note that increased disclosure requirements are aimed primarily at Beijing. The bill will be submitted to the House of Representatives for approval.

In late September 2019, the Treasury said that Washington was not planning to block the Chinese companies from the listing of shares on US stock exchanges.

Shortly thereafter, White House Trade Adviser Peter Navarro said that reports that the United States plans on delisting Chinese companies from US stock exchanges were highly inaccurate.

The report by Bloomberg came ahead of another round of US-China trade talks in October, as the two countries have been engaged in a trade dispute since June 2018, when the United States imposed the first round of tariffs on Chinese imports, prompting Beijing to respond in kind. Since then, the two countries have exchanged several rounds of tariffs and have been engaged in talks to settle their trade-related disagreements.

Sourse: sputniknews.com

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