sends the wrong message to Chinese business executives around the world that it’s permissible to engage in fraudulent transactions with Iran and North Korea,” said Michael Pillsbury, a scholar at the Hudson Institute who was a top China adviser to former President Donald J. Trump.

Michael Pillsbury, the Hudson Institute scholar who was one of Mr. Trump’s top China advisers, said the Biden administration’s approach to China was shaping up to be tougher and “more effective” than Mr. Trump’s because Mr. Biden’s aides were united in their view that the United States cannot successfully confront China alone.

Michael Pillsbury, the Hudson Institute scholar who was one of Mr. Trump’s top China advisers, cautioned that the Biden administration would “find it’s much tougher than they thought to get these allies to openly side with the U.S. on China strategy because of the Europeans’ heavy dependence on the China export market.” That includes Germany’s significant reliance on Chinese auto purchases.

“It makes a huge difference if it was Wuhan or Beijing,” said Michael Pillsbury, a China scholar at the Hudson Institute who informally advises Mr. Trump.

Michael Pillsbury, a Hudson Institute scholar who has spoken to Mr. Trump on China, noted that previous administrations have also had internal divisions on how hard to challenge Beijing. “It’s not a Cold War 2.0 relationship,” he said. “It’s more cooperative than that.”

Michael Pillsbury, an informal China adviser to Mr. Trump, said the S.E.C. often makes the logical argument that Chinese companies would simply choose to list on exchanges in other countries.