The House unanimously passed the “Holding Foreign Companies Accountable Act” yesterday. The legislation bars foreign companies from trading on US stock exchanges if they do not provide access to accounting and audit information or meet certain disclosure requirements related to foreign government control for three consecutive years. The bill passed unanimously in the Senate in May and will now go to President Trump for final approval.
More context: While the bill applies to companies in any foreign country, the legislation’s sponsored largely intended to focus on Chinese companies listed in the US. Senators John Kennedy (R-LA) and Chris Van Hollen (D-MD) noting that the legislation rejects a “toxic status quo” that allows Chinese companies to operate without being held to the same standards as other publicly listed companies.