US stabs itself in back; China complains
Euromoney, is part of the Delinian Group, Delinian Limited, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2024
Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

US stabs itself in back; China complains

Will forcing all foreign firms to comply with US audit standards be the straw that breaks the camel’s back in Beijing?

camels 780

A bill passed by the United States Senate that aims to force all foreign firms to comply with US audit standards has received short shrift in Beijing.

China’s securities regulator – the CSRC – hit back, saying the proposal will “weaken confidence” in US stocks, and accusing lawmakers in Washington of “politicis[ing] securities regulation” and creating a law “directly targeted at China”.

Two of those charges are true; the third may be, too. The bill is certainly conveniently timed from a US point of view. Donald Trump has been bashing China for months, his fears of losing re-election due to the Covid-19 pandemic, which started life in the mainland city of Wuhan, clear for all to see.

But in recent weeks, he has banged the rhetoric up a notch. In mid May, he ordered the main government pension fund, the Federal Retirement Thrift Investment Board, not to invest any of its $600 billion portfolio in Chinese securities.

Sino-American relations are further assailed by threats to reignite a trade war, renewed unrest in Hong Kong, and Washington’s decision to tighten sanctions on technology firm Huawei.

Gift this article