Washington/ Beijing: The United States delivered a major jolt to China, who was eying to take over major companies around the world by making huge investments. The US Senate has passed a bill to expel the companies violating the laws. Although the bill mentions foreign companies, the bill is primarily to target Chinese companies.
Senator John Kennedy from the Republican Party and Senator Chris Van Hollen of the Democratic Party had presented this bill, regarding foreign companies, in the US Senate. Senator John Kennedy said ‘The ruling Chinese communist party is cheating us and the new bill will stop the cheating in the US stock markets. We do not wish to allow the companies that pose a threat to the United States, to feast on US money.’, in support of the bill.
The bill named ‘Holding Foreign Companies Responsible Act.’ will necessitate that the foreign companies prove that they are not under the control of a foreign government. If they fail to prove that, their registration in the US stock markets will be cancelled. Only a few days ago, Chinese company Luckin Coffee, was issued a notice for manipulating its income. The bill passed by the Senate becomes significant in view of this.
The new bill passed by the US Senate is a part of the political war initiated by the United States against China, given the Coronavirus pandemic. President Trump has already threatened to cancel the trade agreement with China and imposing new taxes and sanctions on China. The United States has also castigated China over the issues of Cyberattacks, theft of technology and intellectual property and has threatened action.
The shares of Chinese companies declined by nearly 1% to 2%, following the passage of the bill by the US Senate.