President Donald Trump talks about the election after handing out the Freedom Medal to former college football coach Lou Holtz at the White House Oval Office on December 3, 2020 in Washington, DC.
Doug Mills | Getty Images
President Donald Trump on Friday signed legislation that would expel Chinese companies from U.S. stock markets unless they meet U.S. audit standards, the White House said, giving the Republican one more tool to threaten Beijing before leaving the charge next month.
The Holding Foreign Companies Accountable Act prevents foreign companies ’securities from being listed on any U.S. stock exchange if they have breached the audits of the U.S. Public Accounting Oversight Commission for three consecutive years.
Although it applies to companies in any country, the sponsors of the legislation intended to target Chinese companies listed in the United States, such as Alibaba, technology firm Pinduoduo and oil giant PetroChina.
The legislation, like many others that take a tougher line on Chinese companies, had been passed by Congress by large margins earlier this year. Lawmakers, both Democrats and fellow Republicans of Trump, echo the president’s hard line against Beijing, which became fiercer this year when Trump blamed China for the coronavirus that ravaged the United States.
The act 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 overseas regulators inspect local accounting firms, citing national security concerns.