US, green light from Congress to close for Chinese companies listed on Wall Street

2020-12-03T16:00:45.580Z

The House has given the green light to the bill that forces listed Chinese companies to adhere to American accounting standards: those that do not will be forced to abandon the listing on Wall Street. The measure, which effectively obliges companies to prove that they are not controlled by a foreign government, had already been approved by the Senate in recent months and now for its entry into force only the signature of Donald Trump is missing. The bill could affect companies like China Telecom and Alibaba. US President Donald Trump is expected to sign the law, which has benefited from a bipartisan consensus on adopting a tougher line against China. The Holding Foreign Companies Accountable Act requires Chinese companies to grant the U.S. public company accounting supervisory board access to certified accounts, which is currently prohibited by Beijing. Furthermore, it would force companies listed on US stock exchanges to prove that they are not controlled by a foreign government.