SHANGHAI (Reuters) – Chinese state media Global Times on Saturday praised the agreement between Beijing and Washington on audits of Chinese companies listed in the United States as a “symbolic case” and a “useful lesson” for both countries .
This op-ed comes a day after the two countries took a major step toward ending a dispute that could kick-start a Chinese company, including Alibaba (NYSE: BABA) from the American Stock Exchange signed the agreement Allow U.S. regulators to scrutinize accounting firms in China and Hong Kong.
The Global Times wrote in an op-ed without a named author that the deal shows that, although it is normal for the two countries to have differences, “it should not be a sign that the two countries are moving towards a comprehensive An excuse for confrontation”. While respecting overseas regulators, the Global Times added that while the US needs to strengthen corporate supervision, China must maintain national security.
“It is commendable that the concerns of both parties were understood and respected by the other, and the needs of both parties were met through judicious arrangements.”
The agreement marks a milestone in a years-long debate between the two governments over how much U.S. regulators oversee the finances of Chinese companies looking to list in the U.S.