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Mnuchin: Chinese companies that fail to pass US accounting standards will be delisted in 2022



File picture: On May 22, 2020, Pudong, Shanghai, China. At the opening of the National People̵

7;s Congress, a woman wearing a protective mask walks in the Lujiazui Financial District. Reuters/Aly Song

WASHINGTON (Reuters)-US Treasury Secretary Steven Mnuchin said on Monday that China and other companies that do not comply with accounting standards will be delisted from the American Stock Exchange at the end of 2021.

Mnuchin and other officials recommended the move to the U.S. Securities and Exchange Commission (SEC) last week to ensure that Chinese companies and U.S. companies align their standards, prompting China to call for frank dialogue.

Mnuchin told the US Securities and Exchange Commission (SEC) at the White House briefing that these recommendations will be adopted. He said: “By the end of next year, they must all abide by the same accounting standards, otherwise they will be delisted from the exchange.”

The proposal is part of the Trump administration’s efforts to correct the serious imbalance between the world’s two largest economies. In the past few months, the two countries have dealt with the coronavirus outbreak in China, and tensions between Hong Kong and human rights have increased.

U.S. President Donald Trump said that under the first phase of the trade agreement signed in January, China has also failed to fulfill its promise to buy more U.S. goods, even though he said it will buy more next year.

Trump told reporters: “We have completed the first phase of the transaction. This is an amazing transaction. Suddenly, it doesn’t make much sense for the whole thing.”

He said that under the trade agreement, increased purchases of American goods will “never make up for the loss of life in our country and the world.”

Trump also once again called on the World Trade Organization (WTO) to stop treating China as a developing country, arguing that doing so would give Beijing an unfair advantage over the United States and other countries.

China believes this classification is reasonable because many of its regions are still developing.

Reporting by Jeff Mason, Andrea Shalal and Alexandra Alper; Editing by Chris Reese and Sam Holmes

Our standards:Thomson Reuters Trust Principles.

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