WASHINGTON (Reuters) – China on Saturday called for frank dialogue and closer cooperation in reaction to news that Trump administration officials had urged the U.S. president to de list Chinese companies that trade on U.S. exchanges and fail to meet its auditing requirements by January 2022
U.S. Securities and Exchange Commission and Treasury officials revealed the development on Thursday, which came after President Donald Trump tasked a group of key advisers, including Treasury Secretary Steve Mnuchin and SEC Chairman Jay Clayton, with drafting a report with recommendations to protect U.S. investors from Chinese companies whose audit documents have long been kept from U.S. regulators.
The development also came amid pressure from Congress to crack down on Chinese companies that avail themselves of U.S. capital markets but do not comply with U.S. rules faced by American rivals.
“We are simply leveling the playing field, holding Chinese firms listed in the U.S. to the same standards as everyone else,” a Treasury official told reporters in a briefing call.
WASHINGTON — Chinese companies with shares traded on U.S. stock exchanges would be forced to give up their listings unless they comply with American accounting requirements under a plan recommended Thursday by the Trump administration.
The proposal addresses a long-simmering dispute over U.S. regulators’ inability to inspect the accounting quality of Chinese companies that sell shares here.
Under the plan, Chinese firms that are already listed on the New York Stock Exchange and Nasdaq Stock Market would have to comply by 2022 — or give up their listings on those exchanges.