Biden Must Act as Beijing Targets U.S. Savings | It’s up to the president to protect American investors as China vies for global leadership.
- One of the safeguards Americans rely on is the Public Company Accounting Oversight Board (PCAOB). Its regulators vouch for the accuracy of the books of every firm — American and foreign — operating on a U.S. exchange. Firms under the thumb of the CCP, though, have a penchant for lying to the PCAOB or snubbing its oversight altogether. That leaves Americans looking to invest flying blind.
- At a time when the PCAOB estimates that the Chinese firms registered with it have a global market capitalization of roughly $2.3 trillion, China has made it impossible “for the PCAOB to obtain timely access to relevant documents and testimony necessary to carry out [its] mission.”
- As a result, Chinese businesses are freer to commit fraud than their American, Asian, and European competitors. Luckin Coffee, for instance, made up a nonexistent $310 million in sales in less than a year. When such fraud comes to light, these businesses’ stock values can drop quickly — dragging Americans’ savings down with them.