AsianFin -- Leader of the U.S. securities regulator is said to move forward possible plan to delist Chinese stocks traded in the country, a new sign that the Trump administration is forcing Beijing to negotiate over trade barriers.
Credit：China Central Television
The Trump administration is moving forward a possible delisting of Chinese stocks on American exchanges, and Paul Atkins, who was confirmed Wednesday evening as the next leader of the U.S. Securities and Exchange Commission (SEC), could take up take up the delisting issue when he takes office, reported by Charlie Gasparino at Fox Business.
It was reported that the Republicans lawmakers have increasing appetite to delist public Chinese companies amid deepening U.S.-China trade tensions, and Congressmen are particularly concerned about so-called “golden shares” that grant the Chinese government control over listed companies. U.S. law allows delisting if Chinese companies don’t allow inspection of books and ties to the Chinese government,the report noted.
U.S. Treasury Secretary Scott Bessent earlier this week refused to rule out delisting of Chinese shares as U.S.-China trade war escalates.
In an interview with Fox Business on Wednesday, Bessent responded to questions about how far the Trump administration might go. “We are putting in process export controls for high-value, security-related goods,” he said. “We are talking about… a blacklist of things that… investors should not be investing in to fund the Chinese military machine.”
When asked about whether Chinese stocks could be delisted, he said: “Everything is on the table.”
Bessent, who is considered close to President Donald Trump’s economic policy team, said the decision to delist Chinese shares will depend on Trump. “That will be President Trump's decision. At the end of the day, President Trump and Chairman Xi have a very good personal relationship and I'm confident this will be resolved at the highest levels,” said the Treasury Secretary.
Bessent attacked China for not responding to calling of trade talks. “The Chinese actually don’t want to come and negotiate,” Bessent said. “They are the worst offenders in the international trading system. They have the most imbalanced economy in the history of the modern world.”
Bessent on Wednesday also urged U.S. allies to consider how to rebalance China, claiming any U.S. allies aligning with China on trade would be "cutting your own throat."
