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Chairman Moolenaar of the House Select Committee on China, along with Chairman Rick Scott of the Senate Committee on Aging, sent a letter to Securities and Exchange Commission (SEC) Chairman Paul Atkins encouraging the Commission to initiate the delisting of Chinese companies that present significant national security and investor protection threats, according to a statement from the Select Committee on the CCP (SCCCP).
The letter points out Chinese companies that are listed on US stock exchanges, such as Alibaba, Baidu, Hesai, and Zeekr, which benefit from American capital markets while also promoting the strategic goals of the Chinese Communist Party (CCP), including military modernisation, surveillance, and forced labour, as indicated in the SCCCP release. "These companies are not just commercial entities; they are instruments of the Chinese Communist Party's broader strategy to undermine US interests," said Chairman Moolenaar. "The SEC must act decisively to protect American investors and national security," as quoted by the SCCCP release. US-listed Chinese firms such as Alibaba, JD.com, and Tencent Music have connections to the Chinese military or are integrated into China's surveillance apparatus. Most Americans with 401(k) plans or pension funds are unaware that they are investing in these companies. Many operate through shell companies that obscure ownership, are difficult to audit properly, and are exempt from revealing their affiliations with the CCP. As a result, American investors lack transparency, according to the SCCCP statement. Several listed companies are linked to forced labour in Xinjiang or supply technology for the CCP's extensive surveillance of its population, including Uyghurs and other minority groups. Some firms on US stock exchanges have contributed to the development of weapons systems for the PLA, supported drone warfare, or facilitated cyberattacks targeting American infrastructure, as noted in the SCCCP statement. The Committee called on the SEC to utilise the Holding Foreign Companies Accountable Act and Sections 12(j) and 12(k) of the Securities Exchange Act to suspend or remove companies that are inherently unable to comply with US law. The SEC possesses the authority to take action, and the letter requests swift enforcement to ensure that US markets do not serve as a funding source for America's leading adversary. (ANI)
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