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US lists more Chinese firms to delist them from American exchanges

In a fresh crack down on Chinese companies, the US Securities and Exchange Commission (SEC) has added over 80 firms to its list

Chinese

Sentinel Digital DeskBy : Sentinel Digital Desk

  |  6 May 2022 8:25 AM GMT

SAN FRANCISCO: In a fresh crack down on Chinese companies, the US Securities and Exchange Commission (SEC) has added over 80 firms to its list that is likely to delist them from American exchanges, including China's JD.com, China Petroleum & Chemical Corp, JinkoSolar, Pinduoduo, Bilibili, electric maker NIO Inc and NetEase.

According to media reports, the US SEC placed the Chinese entities among others on the list that face delisting under a 2020 law. JD.com said in a statement that it has been identified by the SEC under the US Holding Foreign Companies Accountable Act.

"The company will continue to comply with applicable laws and regulations in both China and the United States, and strive to maintain its listing status on both Nasdaq and the Hong Kong Stock Exchange," JD.com said. "JD.com has been actively exploring possible solutions," it added.

According to Market Watch, JD.com has been caught in an accounting tussle between the US and Chinese regulators that has spanned several years. In November last year, US President Joe Biden signed the law to ban Chinese tech companies like Huawei and ZTE from getting approval for network equipment licences in the country.

The Federal Communications Commission (FCC) had designated Huawei and ZTE as national security threats to communications networks — making it harder for the US firms to buy equipment from them.

Under the new law, the FCC is required to no longer review or approve any authorisation application for equipment posing a clear risk to national security.

Besides Huawei and ZTE, other Chinese firms touted as national security threats are Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, and Dahua Technology Company.

In June, Biden signed an executive order that increases the number of restricted Chinese firms from 48 to 59, expanding a Donald Trump-era ban on the Chinese surveillance companies with alleged ties to the military.

In October, the FCC Commissioner had warned that the Chinese drone maker DJI "is collecting vast troves of sensitive data on Americans and the US critical infrastructure, potentially operating as Huawei on wings". Shenzhen-based DJI accounts for more than 50 per cent of the US drone market. (IANS)

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