Trump plays big cards as he approves the bill to remove Chinese stocks from the US

In its latest move to remove every Chinese involvement in the United States, Donald Trump took a major step on Friday as he signed the legislation to kick Chinese companies off the US exchanges.

This is being done to remind the American regulators to keep their audits in check and if they do not do this then it will most likely finalize the bill and further escalate the tensions between the two countries, also the largest economies of the world. 

This step will especially affect corporate giants like Alibaba Group Holding Ltd and Baidu Inc. The current announcement comes as a big shock to Beijing as Trump tries to take all the steps necessary to stop Chinese involvement or stakes in the US market. 

Trump has time and again spoken against what he called the unfair trade practices from China’s end. The US also slapped a number loaded tariffs on billions of dollars in imports but this year this escalated to extreme levels earlier this year when Beijing was blamed by Trump for being negligent about the coronavirus spread. It became a talking point, not one but a lot of times in his speeches during the electoral addresses that he made. 

The US administration released a statement though Republican Senator John Kennedy of Louisiana, a lead sponsor of the new law which read, “US policy is letting China flout rules that American companies play by, and it’s dangerous.”

Chinese officials retaliated to this step as the foreign ministry spokeswoman Hua Chunying recently told reporters in Beijing soon after a house bill which makes it clear that China was against politicizing securities regulation and urged the corporations to protect investors’ rights.

“It will undermine global investors’ confidence in the US capital markets and will undermine the US capital markets’ global standing and hurt US interests,” the spokeswoman said.

This is only one of the steps against China. Before this, Trump also signed a law that would essentially limit the travel visas for 92 million Communist Party members. With this law in place, any Chinese officials who have a visa for 10 years will now see the duration to be reduced to one month. 

However, the US Securities and Exchange Commission chairman Jay Clayton has been proposing to escalate the rules of the agreement before he steps down by the end of this year, which included delisting of all the organizations that don’t fit the US auditing rules.