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Congress wants to penalize Chinese companies and get access to their accounts

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Chinese companies listed on the stock exchange in the United States such as Baidu and Alibaba may lose their spot on the stock exchange if American regulators do not get access to the accounts. After the Senate, the House of Representatives has now also agreed to tighten up the rules. It is now up to president Donald Trump to sign the bill.

Legislation provides for a period of adaptation. Any penalties will only be imposed if the rules are not complied with for three years. With the law, Washington intensifies its investigation into ties that Chinese companies have with Beijing. Senator John f. Kennedy emphasized during the discussion of the bill, the danger is that in selling, the rules that American companies must comply with, may be ignored.

In addition to the obligation to have US check the books, the US also wants to know if the companies are under government supervision. Beijing expressed strong opposition to the politicization of stock exchange regulations. The Chinese government also wants to talk urgently about the issue.




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