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BREAKING: Chinese Firms on U.S. Exchanges Threatened by Bill Headed to Trump's Desk

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BREAKING: Chinese Firms on U.S. Exchanges Threatened by Bill Headed to Trump's Desk

Photo: Reuters

WASHINGTON (Reuters) - The U.S. House of Representatives passed a law to kick Chinese companies off U.S. stock exchanges if they do not fully comply with the country's auditing rules, giving President Donald Trump one more tool to threaten Beijing with before leaving office.

The measure passed the House by unanimous voice vote, after passing the Senate unanimously in May, sending it to Trump, who the White House said is expected to sign it into law.

"The Holding Foreign Companies Accountable Act" bars securities of foreign companies from being listed on any U.S. exchange if they have failed to comply with the U.S. Public Accounting Oversight Board's audits for three years in a row.

While is applies to companies from any country, the legislation's sponsors intended it to target Chinese companies listed in the United States, such as Alibaba, tech firm Pinduoduo Inc. and oil giant PetroChina Co Ltd..

Measures taking a harder line on Chinese business and trade practices generally pass Congress with large margins. Both Democrats and Trump's fellow Republicans echo the president's hard line against Beijing, which became fiercer this year as Trump blamed China for the coronavirus ravaging the United States.

The act would also require public companies to disclose whether they are owned or controlled by a foreign government.

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