I published an opinion piece in the March/April edition of China Law and Practice on the standoff between U.S. and Chinese regulators. I make the point that China could lose out if it fails to make a deal with U.S. regulators on audit matters.
Treasury Secretary Jack Lew is in Beijing today. He met with Xi Jinping and new MOF minister Lou Jiwei this morning, and is scheduled to meet with Li Keqiang. Lew has a lot to talk about, with cyberspying, currency and intellectual property certainly high on the agenda. I hope he also is able to discuss the SEC/PCAOB standoff with Li Keqiang. I don't think the PCAOB can justify holding off much longer in hopes to reach a bilateral deal with China on joint inspections. If a deal is not soon reached, I expect the PCAOB will be forced to begin the process of deregistration of accounting firms that would lead to Chinese companies being delisted from U.S. stock exchanges.