Communist China Conceded to Avoid Delisting from New York

According to reports, the Chinese Communist Party (CCP) plans to categorize Chinese companies listed in the United States based on the sensitivity of their data, in an attempt to prevent American regulators from delisting hundreds of listed Chinese companies. The CCP’s securities regulator denied the claims on July 25th.

It is reported on Saturday, citing insider sources, that business information of Chinese companies listed in the United States will be categorized as non-sensitive, sensitive, and confidential. This move aims to enable those enterprises to comply with the audit regulations of U.S. regulators.

Report hast it that under this arrangement, companies holding “low-risk” data can submit their audit manuscripts to the U.S. regulator, the Accounting Oversight Committee of Listed Companies, for inspection.

Washington has always required access to all audit documents of Communist China’s companies listed in the United States, but the CCP prohibits firms providing audit work drafts to foreign institutions on the grounds of national security.

The U.S. Congress passed the “Foreign Company Accountability Act” in December 2020, requiring foreign companies listed in the United States to comply with U.S. audit requirements, otherwise they will face delisting. According to this law, more than 270 Chinese companies listed in the United States are at risk of delisting.

This rule requires Chinese companies to comply with U.S. audit requirements by early 2024 at the latest, but the U.S. Congress is considering a bipartisan bill to speed up the deadline to 2023.

In order to avoid the delisting of hundreds of Chinese companies, the Communist regime expressed their willingness to reach an agreement and resolve the audit dispute, but the United States has refrained their prospect of reaching an agreement.