Trump’s New Accounting Policy Could Drastically Change the Chinese Market
President Trump recently spoke about forcing Chinese companies to follow U.S. accounting norms likely pushing the companies to list in non-U.S. exchanges.
The statement came in an interview with Fox Business News, in which Trump said his administration is looking into the accounting issue “very strongly” as they looked for what he called a “problem”.
“Let’s say we do that, right? So what are they going to do? They’re going to move their listing to London or someplace else.”
This issue comes up after an independent board in charge of overseeing billions of federal retirement dollars was told by the White House to delay plans to invest in stocks that include Chinese companies.
This all is in response to the current pandemic and China’s handling of the situation, for which they have drawn much criticism.
We will see just how drastically this changes relations between not only the U.S. and China, but China and other countries as well. It isn’t exaggeration to say there are some tensions between countries right now because of the pandemic, and the fallout from those tensions is yet to be seen.
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