Does the president of the United States intend to expel Chinese companies from Wall Street in the course of the trade war? The portal indicates that “everything is on the table” and “start to be opened” the door to specified a solution.
It is said that this option is being studied in item by advisers Donald Trump. Nearly 300 Chinese companies may be involved. As the Secretary of Treasury Scott Bessent explained, the point is to get Beijing to negociate a trade relation as if again.
Senator Rick Scott wrote in a letter to the head of the Securities and Exchange Commission, Paul Autkins: “US capital markets are the envy of the world, providing unparalleled access to finance for companies worldwide. However, this privilege is linked to obligations, the most crucial of which are transparency and compliance with our disclosure rules." He added that Chinese companies usage access to the American stock exchange while refusing to respect these principles.
Wall Street directors inform against the possible negative impact of the trade war against China. They stress that America and another countries are facing a long-term recession.
The head of the SEC Gary Gensler noted that he succeeded in brokering a breakthrough agreement 3 years ago to supply audit documentation for Chinese trading companies in the US. Until then, Beijing had long blocked specified access.
But that's not enough. Jeremy Mark of the Atlantic Council stressed that all options under force are being considered. He added that "the stock exchanges of Chinese companies in the US are very visible and important".
As of 7 March, US stock exchanges listed 286 companies from your mediate East. Their full value is estimated at $1.1 trillion.
A spokesperson for the Asian Power Embassy in Washington, D.C., stressed that its state has consistently maintained that the United States "should respect global principles governing investment and trade, respect marketplace economy rights and halt politicising and utilizing economical and commercial issues as weapons". He added that undermining assurance in Chinese companies would besides not service the US business environment and yet harm the economical interests of that country.
Trump's squad is to consider utilizing the 2020 Act. It allows state authorities to freely audit listed companies based in China and Hong Kong. These companies, which will not make the data available for control for 2 years in a row, would be removed from the stock exchange.
In February Trump issued a regulation ordering its administration to find whether "the applicable financial audit standards are being respected" for these entities.
However, there are also faster ways to get free of Chinese stock companies in the US. As suggested by TD Cowen's managing director, Jaret Seiberg would suffice to issue a series of applicable presidential decrees under his national safety powers.
Another solution is to ban the creation of entities with variable shares, a structure that Chinese companies usage to offer shares in the United States.
Source: Politico.eu
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