Chinese firms barred from being listed on US stock exchanges
Chinese companies such as Alibaba and Baidu Inc. can be barred from being listed on the US stock exchanges. This move comes after Trump’s sharp rhetoric against China for causing the corona virus situation.
A bill which was introduced by Senator John Kennedy, a Republican and Chris Van , a democrat, was approved by the senate and states that companies now need to certify that they are not under control of foreign government.
If a company can’t show that it is not under such control or the Public Company Accounting Oversight Board, or PCAOB, isn’t able to audit the company for three consecutive years to determine that it is not under the control of a foreign government, the company’s securities would be banned from the exchanges.
“I do not want to get into a new Cold War,” Kennedy said on the Senate floor, adding that he wants “China to play by the rules.”
“Publicly listed companies should all be held to the same standards, and this bill makes common sense changes to level the playing field and give investors the transparency they need to make informed decisions,” Van Hollen said in a statement. “I’m proud that we were able to pass it today with overwhelming bipartisan support, and I urge our House colleagues to act quickly.”
Trump, in numerous tweets, suggested that China wanted Joe Biden to win, until he came along.