Trump considers dramatic escalation of trade war, stopping Chinese firms from US listings


We begin today in the realm of what if what if the trade war gets worse what if in addition to tariffs and the currency ward that's been threatened. What if the trump administration puts limits on the actual all movement of Money Bloomberg first reported that the White House has been thinking about D. listening Chinese companies from American stock exchanges and putting limits on how Americans can invest invest over there. We should say at this point that the Treasury Department says there is no plan to block Chinese companies from listing on US exchanges for now but as marketplace's places tracey Samuelson reports to get going this whole idea is a bit of a tone change restricting investments would open a big new front in the trade tapeworm says Dan Rosen with the Rhodium group as big as the A to a trade is between the United States and China the financial interaction. It is a much much larger number about four million dollars a flows in both directions according to Rhodium estimates Lee Miller is CEO of china-based book a data and analytics six firm. You've got over a trillion dollars market cap of Chinese companies. They're on US exchanges. You've got enormous opportunities to invest in in in Chinese financial and capital markets going forward what would essentially do is it would shut off a good portion of the investment universe from US investors esters. Miller says US regulators don't have access to the same financial information about Chinese firms listed on U. S. exchanges as they do American ones so strengthening those requirements me aiming sense. If you're Walmart you are subject to a certain set of standards. If you are Alibaba and you're behind the Chinese firewall here then you're able to you push back against this oversight and it's it's becoming a bigger problem. Rosen with Rhodium group says imposing investment restrictions isn't unusual against adversaries. The series like Iran North Korea Cuba. What's very abnormal here is that we haven't at all as a nation or even as a government decided that that's how we you want to consider the People's Republic of China. He says historically. US policy has tended to treat China as more of an economic opportunity than a threat. I'm tracey Samuelson for marketplace

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