May 20, 2020 at 12:58 p.m. ET
The Trump administration has also voiced support for stricter oversight of Chinese companies. White House economic adviser Larry Kudlow told Fox Business Network on Tuesday morning that “we have to” push for more accountability from Chinese companies listed in U.S. markets.
“We have to for investor protection, and we have to for national security,” Kudlow said. “A lot of these companies, by the way, have already had scandals and cost investors a lot of money, because of their failure to be transparent in their reporting. The Chinese government forbids that kind of transparency.”
The bill would also need to pass the Democratic-controlled House of Representatives before reaching the president’s desk to be signed into law. “There is not yet a decision on whether to hold a vote on this legislation in the House, according to our conversations with trade and finance counsel there,” wrote Henrietta Treyz, director of economic policy at Veda Partners, in a Tuesday note to clients. “But it is our view that there is bipartisan support for doing so as both Democrats and Republicans look to make their China hawk bonafides known to their constituents.”
The U.S.-China Economic and Security Review Commission compiled a list in 2019 of 165 Chinese companies that are listed on U.S. stock exchanges, including Alibaba Group Holding Ltd. BABA, -0.18% , Baidu Inc. BIDU, -1.12% and JD.com Inc. JD, +0.09% , all of which could be at risk of being delisted if this legislation were to pass.