The passing of the Holding Foreign Companies Accountable Act by congress with bi-partisan support in the summer is the ultimate weapon in combatting the CCP’s growing hegemonic global rule. It also sets into motion the beginning of a great decoupling that will undoubtedly morph into some sort of Cold War 2.0. President Trump just signed this act in law.
So what makes this act so dangerous to China?
The Holding Foreign Companies Accountable Act will require companies publicly listed on stock exchanges in the United States to “declare they are not owned or controlled by any foreign government.” Any company that is will be banned from trading and delisted from exchanges if the Public Company Accounting Oversight Board (PCAOB) is not able to audit specified reports for three consecutive years.
Essentially this Act will push Chinese companies from all US stock exchanges since Chinese companies are essentially just glorified arms of the CCP controlled government. The Holding Foreign Companies Accountable Act will cost Beijing trillions of dollars and set back its ability to harm US interests. The resulting financial strain on Beijing is about to send them reeling.
All Before a Potential Biden Administration
With a potential Biden administration, known for its more than friendly attitude to China about to take over, Trump’s signing of this Act puts the Biden family and Joe Biden’s pro-CCP advisors in a tough position with little ability to prevent the law from being used. In a sense this hamstrings any pro Beijing policy Biden might try to push.
The Holding Foreign Companies Accountable Act is the ultimate weapon the USA has to cripple the CCP without firing a shot, even if Joe Biden is inaugurated.