On May 20, the U.S. Senate unanimously passed the Holding Foreign Companies Accountable Act, a bill that threatens to delist from U.S. stock exchanges foreign companies that use accounting firms that cannot be inspected by U.S. regulators. Although the bill’s provisions apply globally, some apply especially to Chinese companies. In this episode, Shaun Wu sheds light on the accounting concerns that U.S. regulators have regarding Chinese companies, the mechanics of the new proposed law, the uncertainties surrounding its enforcement, as well as practical advice for Chinese companies in light of growing U.S. scrutiny.
Shaun Wu is a Hong Kong-based partner at Paul Hastings. He leads the firm’s Investigations and White Collar Defense and International Litigation practices in Greater China, representing multinational corporations in high-stakes investigations and regulatory enforcement across the Asia-Pacific.
The China Law Podcast is a weekly podcast exploring China’s business and financial sectors from a legal perspective. Get in touch at [email protected] with any feedback and ideas for future episodes.