Home / Business / Chinese companies failing US accounting standards delisted from 2022: Mnuchin

Chinese companies failing US accounting standards delisted from 2022: Mnuchin



FILE PHOTO: A woman wearing a protective face mask walks into the Lujiazui financial district on the opening day of the National People̵

7;s Congress (NPC), in Pudong, Shanghai, China, May 22, 2020. REUTERS / Aly Song

WASHINGTON (Reuters) – US Treasury Secretary Steven Mnuchin said on Monday that companies from China and other countries that do not follow accounting standards will be delisted from the US stock exchanges by the end of 2021.

Mnuchin and other officials recommended the move to the US Securities and Exchange Commission last week to ensure that Chinese companies are kept to the same standards as US companies, prompting China to demand a sincere dialogue.

Mnuchin told a White House to inform the SEC that it was expected to adopt the recommendations. “By the end of next year … they will all have to follow the same exact accounting, or they will be delisted on the stock exchanges,” he said.

The recommendation is part of pressure from the Trump administration to correct what it calls major imbalances in the ties between the world’s two largest economies. Tensions between the two countries have flared up in recent months over China’s handling of the coronavirus outbreak, Hong Kong and human rights.

US President Donald Trump said that China also failed to meet its commitments to buy more US goods under a Phase 1 trade agreement signed in January, although he said purchases should increase next year.

“We did a Phase 1 deal and it was a wonderful deal, and suddenly it means very little to the total import of things,” Trump told reporters.

He said that increased purchases of US goods required by the trade agreement “would never pay for the loss of life in our country and around the world.”

Trump also reiterated his call on the World Trade Organization to stop treating China as a developing country, claiming that this did Beijing unfair advantages over the United States and other countries.

China claims that the classification is justified because many of its regions are still developing.

Reporting by Jeff Mason, Andrea Shalal and Alexandra Alper; Edited by Chris Reese and Sam Holmes

Our standards:Thomson Reuters Trust Principles.

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