China backs down on US flight restrictions after Trump retaliates

Beijing announced the decision on Thursday to allow American airlines to operate limited flights to the country on after Washington said it would bar Chinese airlines from flying into the US from June 16.

The airlines spat came amid rising tensions on many fronts, from health to diplomacy, between the US and China, the world's two largest economies.

On Thursday, which was the 31st anniversary of the 1989 crackdown on pro-democracy protesters in Beijing's Tiananmen Square, Trump fired another salvo at China accusing it of endangering US investors by refusing to have its companies listed in the US stock markets comply with US investor protection provisions. "China's efforts to thwart transparency requirements suggest significant risks even for investors in Chinese companies listed on US stock exchanges," he said. He cited as an example Chinese government restrictions on auditors sharing information with the board overseeing them.

Saying that "the time has come to take firm action", Donald Trump added that he was setting up a Working Group on Financial Markets to suggest remedies for ensuring Chinese companies listed in American companies complied with US norms.

US Secretary of State Mike Pompeo appealed to stock exchanges around the world to follow the example of NASDAQ and tighten listing rules for Chinese companies. In an action directed against Chinese companies, NASDAQ announced last month that auditing firms would have to ensure all listed companies comply with international reporting and inspection standards.

As a face-saving measure to avoid giving the impression it was caving in to US pressure, China extended the new airline regulation to all foreign carriers. Beijing had said that only those airlines that were flying to China on March 12 could resume flights to that country starting June 8. (IANS)

Also watch: Evening Bulletin | 5th June, 2020