While it applies to companies from any country, the legislation’s sponsors intended it to target Chinese firms. Authorities in China have long been reluctant to let overseas regulators inspect local accounting firms, citing national security concerns. Experts also believe, that despite the new law, at least some Chinese firms looking to go public will factor in that a compromise will be worked out and still seek to list in the United States. (China)-based companies will continue give considerable weight to the many commercial advantages of being listed in the United States,” said Jason Elder, a partner at law firm Mayer Brown. There are 217 Chinese companies listed in the United States worth a combined $2.2 trillion, the US-China Economic and Security Review Commission said in early October.

Source: Dhaka Tribune December 03, 2020 14:26 UTC