GOOD MORNING FROM LONDON #204
The FT reports on a growing issue for auditors. In March 2021 the US Securities + Exchange Commission implemented a Trump law that compels foreign companies listed in the US to allow US Regulators’ to review their financial audits. In response, China refused + accused the US of “politicising security regulation”.
The Big Four auditors – Deloitte, PwC, KPMG + EY – dominate China’s auditing market. Compliance with US law risks the Big Four’s future in China. Apple + General Motors have HQ’s in the US + expanding operations in China. There is an impasse + the US stands to lose China’s growing Listing business. Will London benefit + resist the US to get the business? Will such a move affect the US/UK trade deal?
It is a trial of strength between the declining power of the US + the coming power of China. This is a moment in history when the status quo is challenged. It appears in the S China Sea, Xinjiang Cotton, the Olympics, the UN, Nigeria. It is a global issue that is increasingly the main issue.