Kennedy, Rubio introduce bill banning dangerous Chinese companies from exploiting U.S. capital markets
Mar 03 2021
WASHINGTON – Sens. John Kennedy (R-La.) and Marco Rubio (R-Fla.) today introduced the American Financial Markets Integrity and Security Act to ban malign Chinese companies—including the parent, subsidiary, affiliate or a controlling entity—that are listed on the U.S. Department of Commerce Entity List or the U.S. Department of Defense list of Communist Chinese military companies from accessing U.S. capital markets.
“The Chinese Communist Party shouldn’t find ready investors on U.S. soil. I’m thankful to partner with Sen. Rubio to ensure that American capital isn’t developing, expanding, or strengthening China’s military. This is a national security priority, and I hope our colleagues pass this bill without delay,” said Kennedy.
“The Chinese Communist Party’s exploitation of U.S. capital markets is a clear and ongoing risk to U.S. economic and national security that must be addressed. The American Financial Markets Integrity and Security Act will ban these companies from operating in U.S. capital markets and make clear to the Chinese Communist Party that they will no longer be able to exploit our financial system. I urge the Biden Administration to support this bill and build upon—not undo—the critical work the previous administration took to address China’s exploitation of U.S. capital markets,” said Rubio.
Currently, there are a number of Chinese companies accessing U.S. capital markets, and more than 30 of these are identified on lists released in June and August 2020 by the Pentagon. This includes those companies that the U.S. government has sanctioned yet are operating in the U.S. capital market system while being involved in the Communist Party’s military, espionage, human rights abuses, “Military-Civil Fusion Strategy” and the “Made in China 2025” industrial policy.
As part of efforts to guard American investors and their capital, this December, the president signed into law the Holding Foreign Companies Accountable Act, Kennedy’s bill to protect American investors and their savings from Chinese and other foreign companies that operate on U.S. stock exchanges while refusing to submit to Securities and Exchange Commission oversight.
Sens. Mike Braun (R-Ind.), Tom Cotton (R-Ark.), Ben Sasse (R-Neb.) and Rick Scott (R-Fla.) have also cosponsored the American Financial Markets Integrity and Security Act.
Rep. Mike Gallagher (R-Wis.) introduced companion legislation in the House.
The full text of the bill is available here.