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Bill passed on Wednesday
The bilateral stake foreign company accountability law will help protect American investors and their retirement savings from foreign companies, which are trading on the US stock markets, over-stocking. The House of Representatives, the lower house of the US parliament, passed the bill on Wednesday. Earlier the Upper House Senate passed it on 20 May.
What does the new bill say?
The bill prohibits such companies from listing on the US stock market, failing to comply with the Auditing Rules of the Public Company Accounting Monitoring Board (PCAOB) for three consecutive years.
Public companies will have to provide information
Under the new rules, public companies will have to tell whether they are owned or controlled by a foreign government, including the Communist government of China, and will also ensure that the same accounting rules apply to foreign companies doing business in the US. Which apply to American companies.