As published on: caixinglobal.com, Friday 20 June, 2025.
Chinese companies trading on U.S. stock exchanges may face tighter scrutiny as the Securities and Exchange Commission (SEC) seeks to update decades-old rules on foreign private issuers (FPIs), a move that could further test deteriorating China-U.S. relations.
The surge in foreign companies, particularly from China, leveraging offshore tax havens to list on U.S. exchanges has made it more difficult for American regulators to oversee them, as their FPI status gives them exemptions from the same disclosure requirements as their domestic counterparts.