US, China reach deal in dispute over Chinese company audits

By MARCY GORDON and JOE MCDONALD
AP Business Writers

WASHINGTON (AP) — The U.S. and China have reached a preliminary agreement allowing U.S. regulators to inspect the audits of China-based companies whose stocks are traded on U.S. exchanges. In a long-festering dispute, U.S. regulators have threatened to boot a number of Chinese companies off U.S. exchanges if China doesn’t permit the inspections. The deal was announced Friday. If it does work out, the agreement means U.S. investors could maintain access to shares of important Chinese companies while at the same time being protected by the integrity of the companies’ audits.