"The issue is not only one of law or accounting but a wider one of sovereignty. US rules, which require accountants to share audit documents from foreign countries, conflict directly with China’s, which bar the practice. If the regulators of both countries continue to assert their own rules, companies and investors caught in between will be hurt in the process."

Read more here.

Ann Lee is a Senior Fellow at Demos and an Adjunct Professor of Economics and Finance at New York University. She is a former investment banker and hedge fund partner who has made frequent appearances on networks such as Bloomberg, ABC, CBS, CNN and NPR. For more information, please visit her website at professorannlee.com.