No, this blog post is not written to refer to Elizabeth Warren’s continual reference to “poor Americans being hammered.” It is meant to reinforce a point I have previously made about the economic competition between the United States and China. President Trump is making slow progress in his attempt to level the playing field in this economic arm-wrestling match between Xi Jinping and himself.
It appears the Phase 1 trade deal is done and now comes Phase 2, the harder one,. Trump has one tool for this phase besides tariffs, a huge hammer, he has yet to use in this competition ... and that is to force Chinese companies listed on American stock exchanges to comply with Generally Accepted Accounting Principles (GAAPs) and to undergo annual audits by a reputable accounting firms.
Why our SEC has allowed Chinese companies to slide on these restrictions is beyond me? This has permitted its companies access to American capital that they shouldn’t have had ... and given them an unfair advantage against those American companies who have had to comply. And this capital has also indirectly funded much of China’s worldwide mischief.
At the very least, Trump should make such compliance a requirement for Xi to get a Phase 2 trade deal ... a hammer that finally would make the Chinese economic competition a far fairer match.
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