White House Said to Focus on Limiting China Stocks in Pension Fund

The US is considering restricting capital inflows into China, particularly through government pension funds, due to concerns about financial fraud and the implications of MSCI's decision to increase China's weight in emerging market indices. Delisting Chinese companies is no longer being considered, but there is a push in the Senate, led by Marco Rubio, for a bill requiring Chinese companies listed in the US to comply with US auditing standards. This move aims to protect American investors from risks associated with non-compliance by Chinese companies.

How does the White House justify the potential restrictions on investments in Chinese companies?

Why do many Chinese companies listed in the US not comply with US auditing standards?