Washington: The US Senate has passed a bill to prevent Chinese companies from getting listed on the US stock market. Now Chinese companies will have to comply with the auditing rules to be listed on the US market.
The Senate is the upper house of the US Parliament, the Congress. The motion was moved by Republican Party MP John Kennedy and Democratic Party MP Chris van Hollen, which was passed unanimously. It is necessary to pass this bill in the House of Representatives (lower house). Then President Donald Trump will sign it.
Then it will take the form of law. Under the ‘The Holding Foreign Company Accountable Act’, the security of any company which has failed to comply with the rules of the US Public Company Audit Board for three consecutive years cannot be listed on the US stock market
Under this rule, public companies will also have to disclose to what extent foreign governments have ownership or control over them. This bill will be applicable to all listed foreign companies. But it is believed that China is being targeted through this.
Since the passing of the bill, the tussle between the US and China has increased. China has strongly criticized Trump and MPs related to this bill, opposing America’s move. China has further tightened laws relating to control over Hong Kong. The US has once again warned him on this.
The Trump administration has consistently blamed China for the Corona virus. The US alleges that China has lately informed the world about Corona, whose entire world is suffering. Corona virus has killed 3.25 lakh people worldwide. However, China continues to deny these allegations. Kennedy said, “Many markets in the world are open to those who cheat. But America’s markets are not open to such companies.
China’s conspiracies are constantly being understood. He has been cheating us at every turn.” Van Halen said that Chinese companies have been constantly flouting American regulations.