A few things happening here. Wall Street wants their IPO fees (of course they do), and has worked for years to delay delisting of Chinese companies through lobbying and special interest groups. Obama demanded more access to Chinese companies - nothing happened. Trump wanted more access and give China 3 years, but that was more than 4 years ago.
The real reason this is happening now is because China is taking away Wall Street's pressure of - "don't take away my listing fees"- by restricting data outflow and encouraging companies to list at home. At the same time, China is slowly liberalizing its own financial market to foreign banks. Goldman sacs is not loosing any money from lack of listing fees, they more than made up that difference by investing in China (which is exactly what China wants).
China is treating data as a matter of National security. Data is like manufacturing 20 years ago. Manufactures are encouraged to come into China, but are dissuaded from leaving. Likewise, data can come in but should not be allowed to leave or shared with foreigners (Chinese data is not going to become more transparent). If further restrictions are imposed, more Chinese companies will leave the global stock market.
Lastly, I doubt a compromised deal is going to be reached, at least not in the way that the SEC wants (Full, unrestricted access) for all of the reasons I just listed.
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