US - China Inspection Agreement

The United States and China have reached a preliminary agreement to allow American officials to inspect the audit documents of Chinese businesses in a first step toward preventing the delisting of nearly 200 Chinese firms from the New York Stock Exchange. The deal could be a milestone in resolving years of tension between the two superpowers, which has led to threats to delist Chinese tech giants such as Alibaba from US stock exchanges.

US and Chinese regulators have reached a preliminary agreement to audit Chinese companies listed in New York. As part of the agreement, China will allow the Public Company Accounting Oversight Board (PCAOB) to access audit work papers and personnel information, US and Chinese regulators announced on Friday. US inspectors plan to begin work by mid-September, the statement said. The decision is seen as a potential milestone in resolving decades of tension between the two super giants, which has led to threats to delist Chinese tech giants such as Alibaba Group Holding Ltd. and Baidu Inc. from US stock exchanges. It also represents a rare concession for Beijing, which has consistently made market confidence-building pledges and balanced national security concerns with addressing the needs of businesses. However, it is important to remember that the agreement is only the first step. It is emphasized that the PCAOB needs to deploy a large number of inspectors to the field, and audit checks on selected firms could take months before a decision on compliance is made. https://twitter.com/BloombergHT/status/1563152266126716931 Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!