US Treasury Secretary Stephen Manuchin said yesterday (Monday) that companies from China and other countries that do not meet US accounting standards will be delisted from the US stock exchanges by the end of 2021.
Manuchin and other officials recommended the move to the US Securities and Exchange Commission (SEC) last week, to make sure Chinese companies are committed to the same standards as US companies, in what should force China to enter into an open dialogue.
Manuchin said at a White House briefing that the SEC is expected to adopt the recommendations. “Starting from the end of next year (“) They will all have to comply with exactly the same accounting standards, or will be deleted from the stock exchanges,” the minister said.
The recommendation is part of the Trump administration’s attempt to correct what it calls a “major imbalance” in relations between the two major economies in the world. Tensions between the two countries have flared in recent months over how China is handling the corona outbreak, Hong Kong and human rights.
President Donald Trump has also said that China is not meeting its commitments to buy more American products, in line with the outline of the first-stage trade agreement signed in January, although he also said purchases are set to grow next year.
“We signed a first-stage agreement and it was a wonderful agreement, and suddenly it doesn’t have much meaning on the general import of things,” Trump told reporters. The president added that increased purchases of American goods, as required by the trade agreement, “will never pay for the loss of life in our country and around the world.”
Trump also reiterated his call on the World Trade Organization to stop treating China as a developing country, arguing that in doing so it gives Beijing an unfair advantage over the United States and other countries.