China Tightens Oversight on Foreign Accounting Firms

On December 19, 2024, China implemented new regulations to enhance scrutiny of foreign accounting firms operating within the country. These firms are now subject to supervision by authorities, including the finance ministry and public securities bureau, and must report their annual business plans and reports. Previously, such firms only needed to file their operations with the finance ministry. This move follows increased regulatory actions, including a record fine of 441 million yuan ($60 million) imposed on PwC in September 2024 over its audit of the failed property developer China Evergrande Group.