The United States continues its trade battle against China, now it wants to control and investigate the companies that are listed on its stock exchange. A measure that would also affect the rest of foreign companies such as Europe.
The United States goes one step further in its trade war with China. The Senate has just passed a bill that could prevent some foreign companies from selling their shares on the US Stock Exchange. if they do not comply with audits or the required regulations for the American country.
This law comes in the middle of a battle of accusations between the United States and China for the COVID-19 virus and after years of trade battles, blockades of companies like Huawei and tariff increases between the two countries. The measure aims curb Chinese companies, but it could affect the rest of countries like Europe.
The trigger has been Luckin Coffee scandal, which has served as a perfect excuse for the United States to implement this measure. It is still a simple bill that must be approved by the House of Representatives before it gets into the hands of Donald Trump and enacts it.
Luckin Coffee It is known as the Chinese Starbuck, a giant chain of coffee shops that on May 15 received the news that Nasdaq, the American electronic market had decided to expel them from the stock market for having falsified the accounts and inflated their sales by up to 40%.
Luckin Coffee intends to appeal the decision although it recognizes the fraud and the company itself has fired its CEO and the chief financial officer, responsible for this scam. Both Chinese and American authorities are investigating the company after it fraud was discovered and the company is collaborating, but this case has served to further widen the gap between the two powers.
The new law they intend to impose on the US Stock Market would allow the United States Government to compel all companies that want to list on your Stock Market to what undergo an audit or disclose if they are owned or are controlled by a government Foreign.