Republican lawmakers are pushing for the delisting of 25 Chinese companies from US stock exchanges, citing concerns over national security and alleged ties to the Chinese military. The move targets prominent firms like Alibaba, Baidu, JD.com, and Weibo, as well as others with alleged military connections such as Pony AI and Hesai.
John Moolenaar and Rick Scott, chairs of Congressional committees, have formally requested the Securities and Exchange Commission (SEC) to take action. They argue that these Chinese companies pose a threat to US investors and national security due to their ties to the Chinese Communist Party and military-civil fusion program.
The lawmakers emphasize that despite appearing as commercial entities, these Chinese firms are allegedly being utilized for state purposes that conflict with American interests. They highlight the need for the SEC to exercise its authority under the Holding Foreign Companies Accountable Act to protect investors from potential risks associated with these companies.
The letter to the SEC underscores that the Chinese Communist Party’s control over these companies is not transparent to US investors and that their integration into the Chinese military and surveillance apparatus poses significant risks. The lawmakers stress the urgency for the SEC to act promptly to safeguard American markets.
Furthermore, the lawmakers argue that these Chinese companies accessing US capital while allegedly supporting a regime accused of human rights violations and engaging in military activities is unacceptable. They call for decisive action by the SEC to suspend trading and compel delisting of companies that fail to protect American investors.
The proposal to delist these Chinese companies is part of a broader effort to address concerns about the influence and activities of Chinese firms listed on US stock exchanges. The move reflects growing bipartisan scrutiny of Chinese companies operating in the US and the need to ensure that American investors are not unwittingly supporting entities that may pose risks to national security.
In conclusion, the push to delist Chinese companies from US stock exchanges underscores the complex interplay between economic interests, national security considerations, and regulatory oversight in the context of US-China relations. The outcome of this initiative will have implications not only for the affected companies but also for the broader financial markets and geopolitical dynamics between the two countries.
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