US Congress Votes to delist Chinese Companies

US House voted unanamously to pass legislation that would ban trading of shares of Chinese companies, such as Alibaba Group Holdings Ltd., over concernsthat their audits aren't sufficiently regulated. So, it appears to this casual follower of Chinese trade rules that the US Government continues its campaign to hold the Beijing Government to international trading rules. As has happened in the past, accounting practices in China vary considerably from accepted international business norms. What this means in the market place of stocks and bonds is that when a customer buys any Chinese stocks, he's gambling that the information provided by the listed company is true, and that it conforms to standard accounting practice. This has proven to be a false assumption on the part of buyers of Chinese stocks. Nobody knows with any confidence what are the practices used by Chinese comapnies. Who audits their figures? The PLA? The Central Committee? The Wuhan scientists? The Great Wall Masons Union? Hmmm. Would you invest some hard-earned money in any Chinese opearation today? Or any day? This law passed the Senate in MAy of 2020. Why has this come to pass? Because China will not allow US regulators to check the work of Chinese auditors. Hmmm. Another case of "You can trust us". Smile. Many Chinese companies have imploded over the last decade, Luckin Coffee is one of the recent companies to implode on a global scale. Sponsor of the bill, Rep. Brad Sherman of California, said that China has been stonewalling requests for audits by American regulators to no avail. Mr. Trump is likely to sign the bill as soon as it reaches his desk. China will have 3 years to comply. The bill included clarifications of the intent to provide insight into the law. The New York Stock Exchange has over 200 listings of Chinese companies and would lose out if these compnaies moved to other exchanges. NYSE executives say that the problem can be resolved with agreements on both sides. Some companies have already gone private to remove obstacles to trading on a global scale. Can Beijing negotiate with the US? Doubtful.