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The heads of the two Congress panels have requested the Chinese groups of insurance and exchanges, including Alibaba, which they say have military links that endanger our national security.
John Molenaar, Republican Chairman of the China Committee of the Chamber and Rick Scott, Republican Chairman of the Senate for Aging Committee, wrote to SEC Paul Atkins Chairman on Friday to request his agency to take action against 25 Chinese groups listed in US exchanges.
The goals also include Baidu search engine, online retailer JD.com and renowned Weibo Social Media Platform.
“These entities benefit from the capital of US investors while advancing the strategic objectives of the Chinese Communist Party. Supporting military modernization and human rights violations,” lawmakers said on paper, which was taken by Financial Times. “They also pose an unacceptable risk to American investors.”
Moolenar and Scott said how commercial Chinese groups appeared on the surface, they were “finally used for unjust state purposes”, in part because of the China military unification program, which requires Chinese companies to share technology with the people’s leaving army when ordered by Beijing.
The push marks the latest US attempt to fight China and reduce its ability to use American capital, technology and expertise to modernize its army.
Both countries are also embraced in a trade war that has aggravated tensions between Washington and Beijing. The CIA also released two Chinese -language videos designed to help them recruit more spies inside China.
Moolenar and Scott said the extension of CCP control over Chinese companies was “systematically hidden by US investors” and Chinese law created “unpredictable risk to American investors that improved findings cannot soften”. They added that many of the companies they quoted in their letter were not “just dark” but were “actively integrated into military apparatus and Chinese supervision”.
They said the SEC had the means and authority under the responsible act of foreign companies to “suspend the trading and obligation of removal by suspending or revoking the registration of securities of Chinese companies that do not properly protect US investors”.
“SEC can – and should – act,” wrote Molenaar and Scott.
The goals include Pony he, who makes autonomous management technology, and Hesai, a laser sensor group that the Pentagon has placed in a list of alleged military links, which the company has denied.
They also include Tencent Music, a transmission platform owned by Tencent Holdings, which is already placed on the pentagon’s black list. Another group is Daqo New Energy Corp, a polysilicon manufacturer who has previously been put on a black list of the US Department of Trade allegedly forced labor in Xinjiang.
Lawmakers said groups were just a subset of Chinese companies that were “entering American capital while serving a genocidal dictatorship and our main geostrategic rival”.
There were 286 Chinese enterprises in US exchanges since Mars, according to the US Economic and Security Commission, which was created by Congress to investigate trade security and economic relations implications between US and China.
The measure comes after some investors in the US have worried that the US-Kina trade war can escalate into a capital war.
“This Multitrillion-Dollar American investor by signing our main opponent during these years will now be gradually approaching, just like our willingness to continue tolerating China’s unfair practices,” said Roger Robinson, former chairman of the Economic and Security Review Commission, who now runs his consultancy.
Atkins, who swore as the chairman of the sec last month, has not yet announced the movements of policies concentrated in China. His predecessor, Gary Gensler, increased the control of securities related to Beijing.
Asked at his confirmation session for the provision of Chinese groups to respect the standards of the US, Atkins said: “Accounting and auditing is really important for investor protection and capital markets.”
In addition to encouraging Chinese companies in the US, China Panel of the Home has increased the review of US financial groups working with it, or investing in Chinese companies that have claimed military ties or facing charges of human rights abuses.
FT has requested comments from each of the companies.
The Chinese Embassy in Washington said that Beijing opposed the US “overcoming the concept of national security, using national apparatus and long -wing jurisdiction to overthrow Chinese companies.”
“We oppose the return of trade and technological issues into political weapons,” said Liu Pengyu, the embassy spokesman.
The SEC on Friday said Atkins would respond directly to the members of the Congress.
