Dec. 3 (UPI) — Federal lawmakers have approved a punitive measure to delist Chinese companies from U.S. stock markets if they deny government regulators access to vital audits.
The House on Wednesday passed the Holding Foreign Companies Accountable Act, which is aimed at hundreds of listed companies, mostly Chinese, whose audits have not been made available for inspection by the Public Company Accounting Oversight Board.
The same measure, first introduced last year, unanimously passed the Senate in May and now requires President Donald Trump’s approval. Trump is expected the sign the law.
The bill would affect more than 200 companies that trade on U.S. exchanges and have a combined value of $1.8 trillion in market capitalization.
Officials say in most cases Chinese accounting firms cite local laws related to data protection, privacy, confidentiality or national security when they don’t provide the PCAOB with requested information.
Under the new proposal, foreign