This!
Chinese Economics Thread
- Thread starter Norfolk
- Start date
First you say this:
Perhabs because other countries regulators trust/share information with the american regulators? I dont think that anyone bothers with this.
Then, you say this:
For me, that seems an incoherence.
On banking rules, perhabs. But its not realistic to expect china to be able to demand this kind of thing from US banks. The US banks have a small footprint in china, and of course, the US is the financial center of the world and has the reserve currency of the world. That comes with perks.
Perhabs because other countries regulators trust/share information with the american regulators? I dont think that anyone bothers with this.
Not sure if you have reading comprehensive issue or just don't understand the difference between the Chinese companies and the Chinese government.
Chinese companies listed on the US exchanges that were approved by the US regulators, the US regulators decided to impose rules that they want to audit accounting firms of foreign companies, China refused to allow the US auditors to come to China to enforce the US laws and audit Chinese accounting firms.
1. It is the US laws and regulations. And no the US laws don't equal to international laws.
2. The US doesn't have jurisdiction over China. This is a sovereignty issue.
3. Chinese companies have the obligation to comply with the US rules and regulations since they are listing on the US exchanges.
4. China(Chinese government) is under no obligation to comply with the US rules and regulations.
5. China rejected the US demand to audit Chinese accounting firms.
6. Chinese companies can't comply with the US rules because they don't have the authority to grant the US auditors to come to China to enforce the US laws and audit the paper work.
7. The US has the rights to delist Chinese companies over the failure to comply.
8. China didn't break any rules because China has not agreed to such thing to begin with.
Double standard at its finest. Maybe I shouldn't be surprise over your audacity to justify double standard like this. Chinese banks also have a small footprint in the US. Then why the US demands Chinese banks to hand over its clients information. Many countries don't even have banks in the US, then why they are asked to hand over client information. Perks, no it is just pure imperialism.
Many countries didn't trust the America. They are threatened and intimidated and forced to accept the terms.
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I think this is where our friend just doesn't grasp this point, or don't want to grasp this.
Some how, I feel your efforts to educate and inform people falls on deaf ear.
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Can't help a person who wants to keep his eyes closed
Things are not that simple. Yes, chinese companies were approved by regulators to list in the US exchanges.
But in all these years, they have never obeyed the US audit regulations. The US authorities just allowed them to sell shares in the country without following the rules. And now, after negociating for many years with chinese authorities to be able to get acess to chinese audit data, their patience has run out. Perhabs we might say that they should have never been allowed to sell shares in the US in the first place if china didnt permit its audit companies to be inspected by the PCAOB.
And dont think that china is the only country that US auditors want to travel to. In 2015 alone, US auditors travelled to 25 countries to examine audit work. Why dont these countries defend their sovereignty? Perhabs regarding china, this is more about politics than sovereignty.
This isnt about imperialism. The US government wants to prevent its citizens from avoiding paying taxes. If they have the financial power to force banks to do so, why shouldnt they? i bet that if china or other countries had the same power over the market, they would do the same.
Dont bring "trust" to this conversation. Many countries may not trust the US, but many more dont trust china. Each country does its best to safeguard their national interests.
Thing are not complicated. Just accept the simple fact that China has no obligation to comply with the US rules.
It is the US regulators decision to approve the listings of Chinese Companies. The US regulators have the authority at any time to delist any Chinese companies listing on the US stocks exchanges for not compliance. The US regulators wanted the Chinese money so badly that it decided to approve and not enforce the audit requirements. It is the US problem. Don't try to blame others.
Other countries who don't have the backbone to stand up against the US imperialism doesn't mean China would allow its sovereignty to be stepped upon. China doesn't want the US auditors come to China to enforce the US laws on its soil. It is a simple sovereignty and privacy issues.
The problem for you is you are trying to look for right and wrong and good and bad, black and white. It is a simple straightforward situation. No right or wrong, just everyone has different interests and can't come to an agreement. Maybe one day they could find a compromise. In the meantime, the US is exercising its rights to threaten to delist Chinese companies.
Can you read what you just wrote? The US used its imperial POWER to force other countries and foreign banks to handover their clients information but refused to do the same. If this isn't imperialism, then what is.
We are talking about the US forcing other countries to comply through threat and intimidation. And you want to bring up that many countries don't trust China. Are you serious?
Of course, every countries have their own national interested that is why it is after threat and intimidation from the US that they have no choice but to comply.
PCAOB is the least of the "real" issue, if at all. It's the same disguise cut out from the same cloth as "freedom and democracy" to bomb other countries. The headline is a story of hidden geopolitical propaganda draped in rule of law and somebody came here preaching the sanctity of this nonsense. Same underwriters of many Chinese IPO's own those very exchanges. These fat cats are busy making so much money they are practically saying PCAOB be damned as long as they are making money. They kept going until recently when geopolitical rivalry becomes too hot and it becomes a good political football to trot out and play under the marquee of financial decoupling.