On Monday, Steven Mnuchin, US Treasury Department Secretory, said that all the Chinese and other nations’ firms would be delisted from the US stock exchange if they fail to comply with US accounting standards by 2022.
US Treasury Secretory suggested the move to the US SEC to make sure that the Chinese companies, including WeChat and Tencent, are treated with the same standards as other United States ventures. He also reported that the Securities and Exchange Department of the US is adopting the recommendation and will work on it soon.
The move is the outcome of the rising frictions between the US and China. Recently, the US president also reported that the East Asian nation, China, was failing to fulfil its Phase 1 trade commitments, signed in January, to buy more goods from the USA.
The US president also believes and has said it many times too that there is a strong imbalance between the trade ties of the US and China, the world’s two largest economies. The friction between the two has intensified in the last 2-3 months amid the coronavirus crisis, Hong Kong matter, and human rights.
The move would help to correct the imbalance yet would not be able to cover the losses in life happened to the US, according to him. The trump said the purchase of the goods from the US should also rise next year.