US Lawmakers Urge SEC to Delist Chinese Firms Threatening National Security

In a bid to protect national security and safeguard American investors, two prominent lawmakers have urged the Securities and Exchange Commission (SEC) to delist Chinese companies potentially threatening US interests. Chairman Moolenaar of the House Select Committee on China and Senate Committee on Aging's Chairman Rick Scott have pointed to corporations like Alibaba, Baidu, and others, linked to China's strategic ambitions and espionage activities according to a Select Committee on the Chinese Communist Party's statement.

Emphasizing the broader threat posed by these firms, Chairman Moolenaar noted, "These companies are not just commercial entities; they are instruments of the Chinese Communist Party's broader strategy to undermine US interests." Several Chinese companies on US stock exchanges maintain ties to the Chinese military and surveillance initiatives, including companies like Alibaba and Tencent Music, integral to the surveillance network used by the People's Liberation Army (PLA).

Furthermore, many Americans unknowingly invest in these firms through their 401(k) plans or pension funds. These companies often operate through shell companies, lack transparency in ownership, and obscure ties with the Chinese Communist Party, as highlighted in the Committee's release. There are also grave allegations of forced labor involvement and support for cyber-attacks on American infrastructure. The Committee urges the SEC to leverage the Holding Foreign Companies Accountable Act and related sections of the Securities Exchange Act to remove these companies from US markets.

(With inputs from agencies.)