The Holding Foreign Companies Accountable Act was passed in 2020 to counter audit inspection issues of U.S.-listed foreign based companies. Despite it being allegedly neutral, the act largely targets Chinese companies due to conflicting Chinese laws which bar access to auditinformation. However, the act fails to capture the complex involvement of the Chinese Communist Party within corporations and oversimplifies the structure of Chinese state-owned enterprises. Additionally, the act is both overinclusive and underinclusive due to insufficient guidance on U.S.-based issuers whose nature of businesses are in China and variable interest entities. In order for the Holding Foreign Companies Accountable Act to achieve its objectives of investor transparency and protection, the act should be amended to require more extensive disclosures of interactions with the Chinese Communist Party and the standard should shift from a jursidiction-based approach to a caseby-case approach.