US legislators might support a bill to force Chinese firms listed in the US to let the US stock regulators, the PCAOB, check their files. But those checks will not prevent frauds like those by Luckin as some US senators claim, warns audit expert Paul Gillis on his weblog Chinaaccountingblog. Some predictions on what will happen after the bill has been adopted.
China is trying to contain a second wave of the coronavirus. Economist Arthur Kroeber looks at what the government wants to do. Unlike other countries, China tries to eradicate the number of cases to zero, whatever it might cost. Even though that is not realistic, it has huge consequences for some consumer good sectors and travel, who might not recover for the time being. An overview of the situation in June.
China has been banning US regulators at the PCAOB from getting access to information of Chinese companies at US stock markets, as they should do according to US regulations to protect its state secrets. But things are changing, notes auditing expert Paul Gilles at his weblog Chinaaccountingblog. “I suspect that Yi’s comments are a signal that China will back down on this issue, allowing joint inspections with adequate controls to protect state secrets,” writes Gillis.
Premier Li Keqiang caused some rippled over the past few weeks by pushing street vendors as a way to save the economy and generate employment in the post-corona era. Some big cities disagreed, as they have tried to get rid of those vendors and political economist Shirley Ze Yu also disagrees with the street vendor policies, she writes in the South China Morning Post.
The European Union needs to cooperate with China, argues Harvard scholar Shirley Ze Yu at Bloomberg. While the EU is contracting because of the coronavirus pandemic, China is still showing positive predictions, although at a lower level than in the past. China is eager to expand it’s Belt&Road Initiative, and Europe can make good use of it, she tells.
Chinese listings at US stock markets got recently under fire. Former US assistant trade representative Harry Broadman looks with some amazement at this market at the International Finance Law Review (IFLR). “After decades of working in China intensively on financial accounting, there is not a single state-owned enterprise I’ve worked on that I can think of that abided by international accounting standards,” Broadman says.
China was in chaos when the coronavirus emerged in public at the beginning of 2020, but instead of a drama, president Xi Jinping was able to turn the events into a global win for the country, says London-based journalist Zhang Lijia, author of Lotus, a novel on prostitution in China, to Barbara Demick of the New York Review of Books.
Renowned economist Arthur Kroeber, author of the bestseller China’s Economy: What Everyone Needs to Know®, dives into the information explosion after the Covid-19 virus did hit China. Much information is available, but most is of low quality, he argues, and here he does a reality check of what we can say at this stage in April, including Europe and the US.