U.S. Senate passes bill to strengthen surveillance of listed foreign companies May 21 at 12:51
The U.S. Senate passed a bill that would allow the management of foreign companies listed on the domestic stock market to be rigorously inspected and, in some cases, to be delisted. It is aimed at shutting out Chinese companies, and it is likely to cause a backlash from China.
The U.S. Senate unanimously passed a bill on July 20 to strengthen oversight of the management of foreign companies listed on the stock market.
Specifically, the regulatory authorities will rigorously check whether there is any foreign government involvement in the management of the company, and if the target company does not pass the inspection for the third consecutive year, the listing will be abolished.
The bill was jointly submitted by hard-line Republican and Democratic lawmakers to China, and although not described in the bill, it was aimed at shutting out Chinese companies.
Washington and Congress are wary of Chinese government support and involvement in Chinese companies expanding their operations in the country, and the Trump administration tightened sanctions last week against telecom equipment giant Huawei.
There has been intense conflict between the Two Governments over the spread of the new coronavirus, but the move by the U.S. Congress is likely to cause further backlash from the Chinese side.