President Donald Trump speaks about the election after he presented the Medal of Freedom to former college soccer coach Lou Holtz in the Oval Office of the White House on December 3, 2020 in Washington, DC.
Doug Mills | Getty Images
President Donald Trump signed legislation on Friday that would kick Chinese companies off the US stock markets unless they adhere to US control standards, the White House said, giving the Republican another tool to threaten Beijing before leaving 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 not passed the audits of the US Public Accounting Oversight Board for three years in a row.
While it applies to companies from any country, the intention of the legislation’s sponsors was 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 tougher stance against Chinese companies, had been passed by large margins earlier this year. Lawmakers – Democrats as well as Trump’s fellow Republicans – echo the president’s hardline against Beijing, which intensified this year when Trump blamed China for the coronavirus plaguing the United States.
The law also requires that public companies disclose whether they are owned or controlled by a foreign government.
Chinese officials have dismissed the measure as a discriminatory policy that politically represses Chinese companies.
The Chinese authorities have long been reluctant to allow overseas regulators to inspect local accounting firms, citing national security concerns.