This week, U.S. Sen. Rick Scott, R-Fla., showcased a package of “four finance-focused bills to hold Communist China accountable and better protect American investors and families.”
Scott’s office offered some of the reasons why the senator was championing these proposals.
“As tensions between the U.S. and Communist China continue to rise, these important bills will put safeguards in place to protect Americans’ hard-earned investments and stop exploitation by the Communist Chinese government. Since being elected to the Senate in 2018, Senator Scott has been urging both federal agencies and private businesses to decouple operations and investments from the genocidal Chinese regime. The proposed legislation will hold Communist China accountable by closing investment sanctions loopholes, protecting investors from dubious Chinese companies, imposing new sanctions, demanding additional transparency and accountability from publicly-traded companies, and identifying vulnerabilities and requiring disclosures so that transactions are transparent and safe for Americans,” Scott’s office noted.
“We know Communist China will stop at nothing to exploit American markets and take advantage of U.S. investors and companies doing business within its country. Communist China poses a clear and present threat to the U.S. economy and its top targets are our investors, markets, supply chains and jobs. I continue to strongly advocate for all American investors and business leaders to cut ties with Communist China, and forcing transparency to expose both financial and national security risks is absolutely necessary to achieve this. Chinese companies largely operate under the control of the Chinese Communist Party, and if they continue to act in bad faith, we cannot as a country continue to invest and provide capital to their regime. This package will do just that. I’m proud to have such strong support from my colleagues on both sides of the aisle in our fight to hold Communist China accountable and keep Americans’ finances and retirements safe,” Scott said.
This week, Scott introduced the “Sanction Transactions Originating from Pernicious Chinese Companies and Policies (STOP CCP) Act” which is being co-sponsored by U.S. Sens. Mike Braun, R-Ind., Ted Cruz, R-Tex., Joni Ernst, R-Iowa, and Bill Hagerty, R-Tenn
“Many Chinese companies on the Non-Specially Designated Nationals (SDN) Chinese Military-Industrial Complex (NS-CMIC) list avoid sanctions by creating a subsidiary company as a loophole to receive investments. They also avoid sanctions by exploiting areas in the U.S. markets where the NS-CMIC list has no jurisdiction. This bill would expand the jurisdiction of existing U.S. investment restrictions targeting Chinese entities placed on the NS-CMIC Companies list as well as establish that Chinese companies sanctioned under one U.S. authority be automatically sanctioned under all other authorities,” Scott’s office noted.
The bill was sent to the U.S. Senate Banking, Housing, and Urban Affairs Committee. So far, there is no companion measure over in the U.S. House.
Scott also offered the “Transaction and Sourcing Knowledge (TASK) Act” which has the backing of Braun and U.S. Sen. Marco Rubio, R-Fla.
“The Securities and Exchange Commission (SEC) has done very little to crack down on China’s abuses within the U.S. public markets, especially when it comes to the atrocities regarding forced labor and human rights violations within the Peoples republic of China (PRC). This bill would direct the SEC to report on specific sourcing and transaction activities within the forced labor region of the Xinjiang province. Additionally, this bill would require an annual report disclosing if there is a Chinese Communist Party committee member apart of the companies’ operation and summarize the actions and corporate decisions in which such committees may have participated,” Scott’s office noted.
The bill was sent to the Banking, Housing, and Urban Affairs Committee. So far, there is no companion measure over in the House.
Scott is also championing the “Secure America’s Financial Exchanges (SAFE) Act” which Braun is co-sponsoring.
“Chinese companies continue to list Initial Public Offerings (IPOs) on America’s financial exchanges. Many of these companies have alarming ties to the Chinese Communist Party, yet this information is not required to be disclosed to investors or the SEC when seeking to list on American financial exchanges. This bill would require the SEC to implement specific disclosure requirements for Chinese-based companies seeking access into U.S.-based exchanges through Initial Public Offering (IPOs),” Scott’s office noted.
Scott also pointed to his “Protecting American Capital Act” which he brought out earlier this week.
“Companies based in Communist China often benefit immensely from American capital, but provide unreliable or manipulated financial data in an attempt to validate their claims. Without reliable data, U.S. investors are unable to accurately assess the large financial risks imposed by Communist China. The Protecting American Capital Act would require the U.S. Treasury to submit an annual risk assessment to Congress regarding American investors’ financial exposure in the Communist Chinese economy,” Scott’s office noted.
U.S. Sen. Jeanne Shaheen, D-NH, is co-sponsoring the proposal which was sent to the Banking, Housing, and Urban Affairs Committee. So far, there is no companion measure over in the House.
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