The United States House of Representatives (US) passed a bill to remove Chinese firms from the US stock exchange if they did not fully comply with the country's auditing rules.
The bill was approved by the House of Representatives unanimously, after the Senate approved the bill last May.
Under the bill, foreign companies are not allowed to be listed on any US stock exchange if they fail to comply with the audit of the US Public Accounting Board for three consecutive years.
Although the law applies to companies from any country, those who support the bill intend to target US-listed Chinese firms such as Alibaba, Pinduoduo Inc and giant oil company, PetroChina Co Ltd.
In addition, public companies also need to submit evidence of whether they are owned or controlled by a foreign government.
According to a statement issued by Republican Senator John Kennedy, American investors have been 'cheated' after investing in Chinese firms that are seen as legitimate and do not set the same standards as other public companies.
Kennedy explained that China uses the US stock market to exploit American investors.
Meanwhile, the American Securities Association praised the bill and described the move as appropriate to protect Americans from 'fraudulent' companies run by the Chinese Communist Party.
Earlier, Chinese Foreign Ministry spokeswoman Hua Chunying stressed that the discriminatory policy clearly 'attacked' Chinese firms.
"Instead of placing various barriers, we hope the US can provide a fair and non-discriminatory environment for foreign companies to invest and operate in the US," Chunying said in a press conference.
