Bloomberg Tax
Free Newsletter Sign Up
Bloomberg Tax
Welcome
Go
Free Newsletter Sign Up

In Trade Talks, Senators Want More Scrutiny of Chinese Firms (1)

June 12, 2019, 2:10 PMUpdated: June 12, 2019, 3:35 PM

Two senators want the Trump administration to push for another concession in its trade negotiations with China: better protections for U.S. investors who buy shares of Chinese companies that are listed on American exchanges.

Senators Chris Van Hollen (D-Md.) and John Kennedy (R-La.) are urging Trade Representative Robert Lighthizer to demand that China allow U.S. regulators to scrutinize the audits of Chinese companies that trade in America. Critics have argued that watchdogs’ inability to examine such audits puts American investors at risk of buying the shares of companies that might be manipulating their financial statements.

“The current failure of China ...