HYDE-SMITH COSPONSORS BILLS TO PROTECT AMERICAN INVESTORS, TARGET COMMUNIST CHINA MEDDLING IN U.S. MARKETS
WASHINGTON, D.C. – U.S. Senator Cindy Hyde-Smith (R-Miss.) has cosponsored two bills to protect American investors by cracking down on Communist China’s influence in and exploitation of U.S. financial markets.
Hyde-Smith is an original cosponsor of the Secure America’s Finance Exchanges (SAFE) Act and the Sanction Transactions Originating from Pernicious Chinese Companies and Policies (STOP CCP) Act. Both measures were introduced by U.S. Senator Rick Scott (R-Fla.).
“The United States must act more forcefully to confront Communist China’s blatant abuse of the rules in its interactions with American companies and financial markets. These bills begin to call a spade a spade, and force tighter controls over activities that ultimately benefit the Communist Party of China,” Senator Hyde-Smith said.
“Communist China has made clear they’re willing to use any means necessary to become the dominant global power, including exploiting Americans, our financial markets, and our economy. For too long, Chinese companies have been given free rein to lie, cheat, and circumvent the laws and regulations of the United States and intentionally keep Americans in the dark while the Communist Party of China benefits. It’s putting our national security and the security of Americans’ investments at risk,” Senator Scott said.
The SAFE Act would require the Securities and Exchange Commission (SEC) to implement specific disclose requirements for Chinese-based companies seeking to access U.S.-based Exchanges through Initial Public Offering (IPOs), including the disclosure of any financial support from the Chinese Communist Party (CCP) or information regarding employees who have held a position within the CCP. Currently, the SEC and most American investors are unaware that many Chinese companies with CCP ties continue to list IPOs on U.S. financial exchanges to raise capital with U.S. dollars.
The STOP CCP Act would expand the scope of entities considered engaged with the CCP to include subsidiaries and affiliated companies, preventing sanctioned firms from evading restrictions through restructuring. It would also require any Chinese company sanctioned under one U.S. authority to be automatically sanctioned under all applicable U.S. sanctioning authorities, which would ensure comprehensive and consistent enforcement. This legislation targets companies listed on the Non-SDN Chinese Military-Industrial Complex Companies (NS-CMIC) List from evading restrictions and sanctions by creating a subsidiary, or spin-off company.
Both measures have been referred to the Senate Committee on Banking, Housing, and Urban Affairs for consideration.
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