Long-Sought China Audit Agreement Stirs Fears of Broken Promises

US regulators, members of Congress and other audit watchers reacted warily to news of a deal that would open up access to the work of Chinese auditors, ending a yearslong impasse between Washington and Beijing over investor protection rules for public companies.

The agreement would give the Public Company Accounting Oversight Board, the US audit watchdog, full access to Chinese and Hong Kong auditors whose clients are listed on New York exchanges—access the board has sought for nearly two decades. The deal, inked Friday morning, could forestall trading bars facing more than 200 companies under a 2020 US law. For ...