The U.S. increased restrictions on Chinese Communist Party officials entering the country, further escalating the visa wars as the Trump administration prepares to leave office. As the restrictions tightened this week, so did stock exchange rules. The House of Representatives has passed a bill that would bar any foreign company that refuses to be audited by U.S. regulators. Though the bill makes no mention of any specific country, it is likely that it is specifically targeting Chinese companies, which have been asked by the Trump administration to be more financially transparent. "For too long, Chinese companies have disregarded U.S. reporting standards, misleading our investors. Publicly listed companies should all be held to the same standards, and this bill makes common sense changes to level the playing field," commented Senator Chris Van Hollen, a co-sponsor of the legislation, in a written statement.
Meanwhile, as Biden prepares to assume the Presidency, his policy stance towards China is also solidifying. "I'm not going to make any immediate moves, and the same applies to the tariffs," he said to Thomas Friedman during an interview with The New York Times. The goal is to "develop a coherent strategy," which Trump has failed to do, according to the President-elect. Biden's recent nomination of former Federal Reserve Chair Janet Yellen as Treasury Secretary may also signal a change in Washington-Beijing relations, as experts expect the former Fed chair to take a less inflammatory position than the current administration. "There are some valid trade issues with China, and perhaps with Europe," Yellen said in 2018 at a Credit Suisse conference, "but we've always approached dealing with these issues in an orderly way respective of WTO principles and long-established principles of trade." Read more in How Does China Fit into Biden's Foreign Policy Framework? from Richard Weitz, Senior Fellow at the Hudson Institute.
Prepared by China-US Focus editorial teams in Hong Kong and New York, this weekly newsletter offers you snap shots of latest trends and developments emerging from China every week, while adding a dose of historical perspective.