US wants companies ‘to own up’ as they target Chinese

Washington – US market regulators announced the adoption of a rule allowing them to delist foreign companies from Wall Street exchanges if they fail to provide information to auditors, which is aimed primarily at Chinese firms.

The mandate requires them to disclose whether they are “owned or controlled” by a government, the Securities and Exchange Commission said.

Congress last year passed a law specifically targeting Chinese companies under which the Public Company Accounting Oversight Board must be able to inspect audits of foreign firms listed on US markets.

The law also requires companies to name any Chinese Communist Party members on their board of directors.