US inspectors fine China-based firms, including PwC affiliates in Hong Kong and China, for audit deficiencies. The $7.9 million penalties are the highest imposed globally. This marks the first enforcement action against a mainland Chinese-based firm. Chinese companies like Alibaba risk delisting from US stock exchanges if they don't comply with American standards. Chinese authorities have not interfered with investigations. The PCAOB will hold China-based firms accountable and aims to inspect all auditors of US-listed companies in Hong Kong and mainland China by 2024.