Congressman John Moolenaar Chairman of the Select Committee on the CCP | Official U.S. House headshot
Congressman John Moolenaar Chairman of the Select Committee on the CCP | Official U.S. House headshot
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 action against Chinese companies that are linked to the Chinese Communist Party (CCP) and are listed on U.S. stock exchanges. The focus is on companies like Alibaba, Baidu, Hesai, and Zeekr, which allegedly benefit from American capital markets while advancing CCP objectives.
"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 protect both American investors and national security.
The letter raises concerns about American retirement funds potentially supporting the CCP through investments in U.S.-listed Chinese companies such as Alibaba, JD.com, and Tencent Music. It highlights issues with these companies using shell structures that obscure ownership and lack transparency regarding their ties to the CCP.
The letter also addresses human rights concerns, pointing out connections between some listed firms and forced labor in Xinjiang or their role in mass surveillance efforts targeting Uyghurs and other minorities. Additionally, it suggests that some companies contribute to threats against U.S. national security by supporting military developments or enabling cyber intrusions.
The committee has urged the SEC to utilize provisions under the Holding Foreign Companies Accountable Act and Sections 12(j) and 12(k) of the Securities Exchange Act to address these concerns by suspending or delisting non-compliant entities.
According to the letter, immediate enforcement is necessary to prevent U.S. markets from becoming a financial resource for what is described as America's foremost adversary. Detailed profiles of CCP-linked firms and proposed actions for protecting U.S. investors are included in the full letter.
The appeal was supported by a bipartisan group of lawmakers from both chambers, including Chairman Rick Scott, Rep. Rob Wittman, Rep. Andy Barr, Rep. Darin LaHood, Rep. Gus Bilirakis, Senator Jim Justice, Rep. Dan Newhouse, Rep. Ashley Hinson, and Rep. Nathaniel Moran.
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