US Treasury Secretary Steven Mnuchin on Monday said companies from China and other countries that do not comply with accounting standards will be delisted from US stock exchanges as of the end of 2021, reported Reuters.
Mnuchin and other officials recommended the move to the US Securities and Exchange Commission last week to ensure that Chinese firms are held to the same standards as US companies, prompting China to call for frank dialogue.
Mnuchin told a White House briefing the SEC was expected to adopt the recommendations. “As of the end of next year … they all have to comply with the same exact accounting, or they will be delisted on the exchanges,” he said.
The recommendation is part of a push by the Trump administration to correct what it calls major imbalances in ties between the world’s two largest economies. Tensions between the two countries have flared in past months.