The Trump administration has issued its recommendations to ban Chinese companies that do not comply with US accounting standards from listing on American stock exchanges.

The proposals — announced by a working group that included Steven Mnuchin, the Treasury secretary, and Jay Clayton, the chairman of the Securities and Exchange Commission — would force Chinese companies to delist from US stock exchanges unless regulators get access to their audits.

The measures, which are subject to a lengthy rulemaking process before going into effect, would force the delisting of Chinese companies audited by firms whose work cannot be reviewed by the US Public Company Accounting Oversight Board because of Chinese government restrictions.

The Trump administration recommendations envision an alternative to delisting in which the companies could hire a co-auditor outside of China, potentially a US-based entity within the same auditor group, thereby allowing the PCAOB another means to review the audit.

The proposal recommends delisting companies that fail to comply with either requirement by January 1, 2022, and a ban on new listings that did not comply, which would kick in immediately.

The move marks the latest effort by Mr Trump to take a tougher stance on China over everything from trade and technology to ensuring that US investors are not funding Chinese companies that Washington views as a security threat.