Chinese officials have been working with their U.S. counterparts to resolve the issue of Chinese companies being delisted from the U.S. stock exchanges. U.S. regulation states that foreign companies must comply with U.S. audit standards, otherwise they can be withdrawn from the American stock exchanges.

Both policy makers and the Public Company Accounting Oversight Board (PCAOB) of the United States have been complaining about the lack of access to audit papers of Chinese companies listed in the U.S. Chinese companies and officials have been reluctant to allow foreign regulators to check these audit papers, citing national security concerns.

China Securities Regulatory Commission’s department of international affairs say delisting of Chinese companies is bad for the companies, the market, and the Sino-U.S. relations in general. The department added that they were working smoothly and openly with the U.S. to prevent company delistings.

In December 2020, former President Donald Trump signed the law that allows delisting of foreign companies if they don’t comply with U.S. audit standards for three years in a row. PCAOB website shows that China is the only jurisdiction that denies access to conduct oversight.