The United States Senate, on Wednesday, passed a bill that could delist Chinese companies like Alibaba Group Holding Ltd. and Baidu Inc. from the U.S stock exchanges as relations between the world's two largest economies become tense.
Senator John Kennedy, a Republican from Louisiana and Chris Van Hollen, a Democrat from Maryland introduced the bill which was approved by unanimous consent.
The bill would require companies to certify that they are not under foreign government control and to follow US standards for audits and other financial regulations.
The House of Representatives have to pass the bill before President Donald Trump signs it into the law.
The bill is the result of US-China tensions over the deadly coronavirus pandemic and the Luckin Coffee accounting scandal.
Although the bill applies to all foreign companies, it is mainly targeted at China.
Trump and many US officials have pointed out, on many occasions, that China did not handle the coronavirus outbreak in its early stages, which led to the collapse of the global economy, infecting millions worldwide and taking lives of nearly 3,30,000 people across the globe.
Meanwhile, a recent internal investigation, as revealed by Luckin Coffee, found hundreds of millions of dollars of its sales last year were 'fabricated'.
The revelation led to the Chinese coffee chain sacking its chief executive and chief operating officers and six other employees who were 'allegedly' involved have been suspended while an investigation into the company has begun,