SEC/CORPORATE - Holding Foreign Companies Accountable Act Signed Into Law by President Trump - In December 2020, President Donald Trump signed into law the H.
President Trump recently signed into law the Holding Foreign Companies Accountable Act, which aims to increase oversight of Chinese companies listed on US stock exchanges and force the delisting of those that refuse to comply with US audit inspection requirements. This bipartisan legislation was motivated by longstanding US frustrations over China precluding inspections of locally conducted audits of Chinese companies.
Trump signed an executive order barring US investors from buying exposure to firms deemed linked to the Chinese military. (File photo)
NEW DELHI: Outgoing US President Donald Trump has toughened his stance towards Beijing in the final months of his presidency with a slew of measures targeting Chinese companies. Here is an outline of moves so far, the fallout in financial markets and China’s response:
1 Delisting threat Trump signed the Holding Foreign Companies Accountable Act into law on December 18. It allows US authorities to remove foreign firms from stock exchanges if they fail to comply with US audit rules for three years.