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China introduces new rule to tighten scrutiny on foreign accounting firms' domestic operations

China has introduced a new regulation aimed at intensifying oversight of foreign accounting firms operating within its borders, effective from December 19, 2024. This rule mandates that foreign accounting firms must register with the Chinese Ministry of Finance and comply with local auditing standards. The move is part of China's broader effort to enhance the quality of financial reporting and auditing practices, ensuring that foreign firms adhere to the same regulatory scrutiny as their domestic counterparts. This regulation comes amidst ongoing tensions with international regulators, particularly the U.S., over access to audit work papers of Chinese companies listed on American stock exchanges. The new rule could potentially lead to increased transparency but also raises concerns about the operational freedom of foreign firms in China.

Read the Full Reuters Article at:
[ https://www.reuters.com/world/china/china-introduces-new-rule-tighten-scrutiny-foreign-accounting-firms-domestic-2024-12-19/ ]