Chairman Moolenaar of the House Select Committee on China and Chairman Rick Scott of the Senate Committee on Aging have addressed a letter to SEC Chairman Paul Atkins. The letter calls for the delisting of certain Chinese companies from U.S. stock exchanges, citing concerns over national security and investor protection.
The communication highlights major Chinese firms such as Alibaba, Baidu, Hesai, and Zeekr, noting their connection to the strategic goals of the Chinese Communist Party (CCP), including military advancements and surveillance operations.
"These companies are not just commercial entities; they are instruments of the Chinese Communist Party's broader strategy to undermine U.S. interests," stated Chairman Moolenaar. He emphasized the need for decisive action by the SEC to safeguard American investors and national security.
The letter points out that many Americans might unknowingly be investing in these companies through retirement funds like 401(k)s or pensions. It raises issues about these firms' opaque ownership structures, audit challenges, and lack of transparency regarding CCP affiliations.
Additionally, some of these companies are accused of being involved in human rights violations and forced labor practices in regions such as Xinjiang. They also pose threats to U.S. national security by contributing to military capabilities or cyber intrusions targeting American infrastructure.
The committee has urged the SEC to utilize powers granted under existing laws like the Holding Foreign Companies Accountable Act to address compliance issues with U.S. regulations among these entities.
A broad group of bipartisan lawmakers from both chambers signed the letter, urging immediate enforcement actions by the SEC.
