Communist China’s State-Owned Enterprises Dropped Big Four Auditors

According to media reports, Communist China and the United States signed a Statement of Protocol (“SOP”) Agreement to audit Communist China’s companies listed in the United States last year, but recently Communist China urged state-owned enterprises (SOEs) to drop the world’s leading Big Four auditors on data risk. It is reported that the Ministry of Finance of Communist China and other government agencies guided some state-owned enterprises last month, urging them not to renew their contracts with Deloitte, Ernst & Young (EY), KPMG, and PricewaterhouseCoopers (PwC), the Big Four auditors, after the expiration of the arrangements. Insiders say that Beijing authority’s demand for state-owned enterprises to no longer renew contracts with the Big Four auditors is just a show. The US recently launched a series of investigations and sanctions against Communist China’s companies and individuals. Even harsher measures are on the way, causing the public relations (PR) companies hired by Communist China to keep silent out of fear. Communist China’s state-owned enterprises’ PR funds can no longer exchange for “limited protection.” It is better to take the initiative to decouple than to be passively sanctioned: one is to put pressure on the United States through the Big Four auditors, and the other is a reluctant choice made for the sake of saving the face of Communist China’s high-level leadership.