Beijing offered a conciliatory overture in a long-running standoff with Washington over audits of U.S.-listed Chinese companies. That is a concrete first step that could prevent the delisting of hundreds of Chinese companies from American exchanges. The ball now heads back to Washington’s court—where its reception remains highly uncertain.
China’s securities regulator proposed revisions to China’s secrecy laws over the weekend that would remove a requirement that audit inspections of overseas-listed Chinese companies be done mainly by Chinese regulators. That has been a key sticking point between China and the U.S. for more than a decade. But the U.S. position has hardened in recent years following a string of high-profile fraud cases involving U.S.-listed Chinese companies like Luckin Coffee, and amid the general deterioration in bilateral relations.