President Donald Trump signed legislation that would bar Chinese companies from being listed on any US stock exchanges unless they adhere to American auditing standards.

“The Holding Foreign Companies Accountable Act” requires foreign companies to comply with the US Public Accounting Oversight Board’s audits for three years in a row.

The act also requires disclosure of ownership or control by a foreign government.

The legislation applies to companies from any country although the bill's sponsors targetted Chinese companies listed in the US, such as Alibaba, Pinduoduo Inc, and PetroChina Co Ltd.

China has dismissed the measure as discriminatory and politically oppressive to Chinese firms.

Chinese authorities have cited national security concerns in their reluctance to let overseas regulators inspect local accounting firms.

The legislation had passed Congress by large margins earlier this year, with Democrat and Republican lawmakers echoing Trump's hard line against China.