Securities and Exchange Commission (SEC) Chairman Gensler announced that Chinese companies must comply with the new US audit rules and allow the American side to audit their financial materials. If firms do not meet this requirement by 2024, they will be “kicked out” from the US stock market, subjecting their shares to delisting (removing from the list of stock exchanges).

Hundreds of Chinese companies are listed on the US stock market now, which has already allowed them to raise billions of dollars. At the end of 2020 the American authorities adopted a law according to which foreign companies must ensure that the United States has control over audit quality within three years, otherwise, they will face delisting. The restriction was invented primarily in order to “punish” Chinese issuers. Trump, then the current president of the United States, stressed that Asian firms have used and received funds from American exchanges for decades.