The House of Representatives passed legislation Wednesday that, if signed into law by President Donald Trump, will ensure companies listed on U.S. stock exchanges will meet U.S. auditor requirements. If they don’t, they will be removed after three years.
The bipartisan bill introduced by Republican John Kennedy and Democrat Chris Van Hollen passed the Senate vote.
The law largely targets Chinese firms, who for more than ten years have denied audits for many reasons, including national security.
Corruption in Chinese firms means potential risks for U.S. investors.
Kennedy told The Epoch Times in an email that “American families and workers are at risk by jeopardizing their college and retirement savings. My colleagues on both sides of the aisle recognize that fact.”
The Holding Foreign Companies Accountable Act will prevent dishonest companies like Luckin Coffee from taking advantage of U.S. capital markets. Their shares crashed after extensive financial crimes were exposed.
Van Hollen said in a statement, “many have been cheated out of their money after investing in seemingly-legitimate Chinese companies that are not held to the same standards as other publicly listed companies. This bill rights that wrong.”
The American Securities Association praised passage of the bill, saying it was necessary to protect Americans from “fraudulent companies controlled by the Chinese Communist Party.”