New law to exclude Chinese companies from the stock market

stock market

New law to exclude Chinese companies from the stock market. The coronavirus is striking at the height of the US-China trade war. The virus spread from Wuhan, China, and US President Donald Trump called it the "Chinese virus."

The US administration continues to blame China for spreading coronavirus worldwide. As a result, tensions between China and the United States are continuing to rise.

stock market

In such a situation, the United States added fuel to the flame of that tension. China has passed new legislation to exclude companies from the country's stock market. The U.S. Senate adopted the resolution unanimously on Wednesday. As a result , major Chinese multinational tech giants such as Alibaba Group Holdings Limited and Baidu Internet can be excluded from the US stock market.

Louisiana Republican Senator John Kennedy and Maryland Democratic Senator Chris Van Holen raised the bill in the U.S. The Senate passed it unanimously.

President Donald Trump

Once passed in the Senate, the bill is now going to the House of Representatives. It will take effect if President Donald Trump signs it after it has passed. President Donald Trump and the top US leaders have always been critical of the role of Beijing. Analysts believe that the new bill has come in that continuity.

The new legislation requires companies to make it clear whether they are owned or controlled by a foreign government.