U.S. Lawmakers Urge SEC to Delist Chinese Firms Threatening National Security

In a significant move, Chairman Moolenaar of the House Select Committee on China, alongside Senate Aging Committee Chairman Rick Scott, has urged SEC Chairman Paul Atkins to initiate delisting procedures against Chinese firms. This request, emphasized in a recent release, underscores national security and investor protection concerns stemming from Chinese firms trading on U.S. stock exchanges.

The correspondence targets major enterprises like Alibaba, Baidu, Hesai, and Zeekr, as they allegedly exploit American capital for the strategic benefit of the Chinese Communist Party (CCP), including military advancements and forced labor. Moolenaar stressed the non-commercial role these companies play in the CCP's broader agenda to compromise U.S. interests.

Many Americans unknowingly hold stakes in these firms via 401(k)s or pension plans. Opaque ownership structures shield CCP ties, challenging audit efforts. Numerous companies are implicated in Xinjiang's forced labor practices or provide technology for pervasive surveillance of minority groups by the CCP. The letter to the SEC invokes the Holding Foreign Companies Accountable Act and relevant Securities Exchange Act sections to ensure compliance with U.S. regulations, emphasizing the urgent need for action.

(With inputs from agencies.)