The Senate passed legislation on Wednesday that would require Chinese companies to comply with U.S. auditing and reporting standards or face exclusion from U.S. stock exchanges. It would apply to those listed on American exchanges or raising capital in the country.
The Chinese regime currently blocks overseas regulators, including the Securities Exchange Commission (SEC) and Public Company Accounting Oversight Board (PCAOB), from inspecting full audit reports of publicly traded companies headquartered in mainland China and Hong Kong, citing national security and state secrecy.
