President Trump met with China's President Xi Jinping at the G20 summit on June 29, 2019.
Photo: kevin lamarque/ReutersWASHINGTON—President Trump said he was considering whether to require Chinese companies to follow U.S. accounting rules to be listed on the New York Stock Exchange, though he expressed concern that such a move could prompt companies to take their listings elsewhere.
In an interview on Fox Business Network’s “Mornings with Maria,” Mr. Trump said in response to a question on the subject that he was looking “very strongly” at imposing such a rule on Chinese companies, which aren’t currently required to follow the same accounting rules as U.S. companies listed on the New York Stock Exchange.
But the president added: “Let’s say we do that. So what are they going to do? They’re going to move their listing to London or someplace else. You see?”
The fight over regulation of Chinese companies dates back more than a decade, to when many Chinese companies went public on U.S. stock exchanges by merging with an American shell company. Such “reverse mergers” gave the Chinese companies access to a U.S. investor base with little upfront scrutiny from the Securities and Exchange Commission.
In 2019, a bipartisan group of lawmakers introduced legislation aiming to force Chinese companies listed on U.S. stock exchanges to submit to greater U.S. regulatory oversight. Under the bill, firms that weren’t in compliance with U.S. regulators for three years would be delisted.
Mr. Trump’s comments came as he criticized China’s handling of the coronavirus pandemic, which has killed more than 80,000 Americans. He blamed China for failing to prevent the spread of the virus, saying it was “either stupidity, incompetence, or it was deliberate.”
“I have a very good relationship, but right now I just don’t want to speak to him,” he said of Chinese President Xi Jinping.
The pandemic has further raised tensions between Beijing and Washington, and both governments have traded barbs in recent weeks.
Chinese Foreign Ministry spokesman Zhao Lijian has publicly speculated that the U.S. military unleashed the virus in China—an idea amplified by state media but described as absurd by the Pentagon.
Write to Rebecca Ballhaus at Rebecca.Ballhaus@wsj.com
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