Chinese state media lauds U.S.-China audit deal as ‘symbolic’ for ties

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American flags hang from the facade of the New York Stock Exchange (NYSE) building after the start of Thursday’s trading session in Manhattan in New York City, New York, U.S., January 28, 2021. REUTERS/Mike Segar/File Photo

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SHANGHAI, Aug 27 (Reuters) – Chinese state media outlet the Global Times on Saturday praised an agreement reached between Beijing and Washington over the auditing of U.S.-listed Chinese companies as a “symbolic case” and a “useful lesson” for both nations.

The op-ed article came a day after the two countries took a major step towards ending a dispute that threatened to boot Chinese companies, including Alibaba, from U.S. stock exchanges, signing a pact to allow American regulators to vet accounting firms in China and Hong Kong. read more

In the op-ed, published with no named author, Global Times wrote that the deal shows that while it is normal for the two countries to have disagreements, they “should not be an excuse for the two countries to move toward full-scale confrontation”.

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The article went on to note how both sides made adjustments during consultations, with the Chinese side respecting overseas regulators’ efforts to ensure the quality of the financial information of companies that list.

While the United States needs to strengthen corporate supervision, China must maintain national security, the Global Times added.

“It is commendable that the concerns of both sides have been understood and respected by each other, and their needs have been met through wise arrangements.”

The agreement marks a milestone in a years-long dispute between the two governments over how much oversight U.S. regulators have into the finances of Chinese enterprises that intend to go public in America.

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Reporting by Josh Horwitz and Xu Jing; Editing by Pravin Char

Our Standards: The Thomson Reuters Trust Principles.

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