Trump Cites China In Call To Scrap Quarterly Reports For US Companies

by Stefan J. Bos, Worthy News Chief International Correspondent

BEIJING/WASHINGTON (Worthy News) – U.S. President Donald J. Trump has urged American companies to stop publishing quarterly financial reports, pointing to China’s “long-term approach” as a model, although it is a Communist-ruled nation. He suggested that moving to semi-annual disclosures would cut costs and allow executives to focus on growth rather than short-term market pressures.

“Companies should not be required to report quarterly. It’s a waste of money and effort,” Trump wrote Monday on his Truth Social platform.

Under U.S. law, most publicly traded firms must file detailed quarterly (10-Q) and annual (10-K) reports with the Securities and Exchange Commission (SEC). By contrast, America’s key trading partner and ally, the European Union, abolished mandatory quarterly reports in 2014, requiring only half-yearly and annual filings to discourage “short-termism.”

Yet China also legally requires listed companies to publish quarterly, semi-annual, and annual reports. However, Trump suggests that the Communist Party’s tight control over the economy enables Chinese firms to operate with a long-term horizon, shielded from the pressures of shareholder expectations. Critics note that Chinese corporate disclosures are less transparent and more influenced by political priorities than those in the United States.

Trump’s call comes as he faces criticism over his handling of U.S. economic data. On August 1, he dismissed Bureau of Labor Statistics (BLS) Commissioner Erika McEntarfer after a July jobs report showed only 73,000 new positions added, well below expectations, with downward revisions for earlier months. Trump said on Truth Social: “No one can be that wrong? We need accurate Jobs Numbers. They can’t be manipulated for political purposes.”

CRITICS CONCERNED

Economists and former officials condemned the firing. William Beach, a former BLS commissioner, called it “totally groundless,” while Jed Kolko of the Peterson Institute for International Economics described the dismissal as “a five-alarm intentional harm to the integrity of US economic data.” They stressed that revisions are a standard feature of the statistical process.

Trump’s allies defended his decision and his broader business stance. His nominee to replace McEntarfer, Heritage Foundation economist E.J. Antoni, was praised by supporters as someone who would ensure “honesty and accurate economic data reporting.”

Supporters also echoed Trump’s claim that economic figures have at times been used for political reasons. They suggested that quarterly reporting likewise locks businesses into short-term thinking at the expense of innovation and long-range planning.

This is not the first time Trump has pushed the idea. In 2018, while serving as president, he asked the SEC to study whether U.S. companies should report every six months instead of every three. Then SEC Chair Jay Clayton confirmed the review but stressed that quarterly disclosures provide “important transparency for investors and accountability for companies.” The proposal stalled after regulators and investors opposed eliminating quarterly reports.

The SEC has not signaled any move to change course today, and experts emphasize that such a shift would require congressional or regulatory approval. Critics warn that scaling back disclosures would reduce accountability for companies, while Trump and his supporters counter that trimming the rules would strengthen America’s competitiveness — even if the inspiration comes from China.

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