Statement on the PCAOB’s Actions

Today, the Public Company Accounting Oversight Board (PCAOB) designated China and Hong Kong as the jurisdictions where the PCAOB is not allowed to conduct full and complete audit inspections. The PCAOB has made these designations as mandated under the Holding Foreign Companies Accountable Act of 2020 (HFCAA). Pursuant to each annual determination by the PCAOB, the SEC will, on an annual basis, identify issuers that have used non-inspected audit firms and thus are at risk of such suspensions in the future.

Today’s announcement is a crucial step in protecting investors in the U.S. capital markets. The Commission and the PCAOB will continue to engage with relevant foreign authorities on these matters. I hope that those authorities will, working with the PCAOB, take action that allows the PCAOB to carry out its statutory mandate. In addition, we remain committed to working with the PCAOB and our domestic and international counterparts to continue to implement the HFCAA.