US lawmakers push for delisting Alibaba and other Chinese firms for national security concerns

Two members of the United States Congress have come forward to request the country’s Securities and Exchange Commission (SEC) to delist a total of 25 Chinese companies, Alibaba included. The reason behind this call is based on concerns related to national security.

The concerns about the listed Chinese companies revolve around the notion that they are not compliant with U.S. audit regulations. The two lawmakers also highlighted the risks associated with these companies having ties to the Chinese government, which could pose a threat to U.S. national security.

Delisting these Chinese companies is seen as a measure to protect American investors and their interests. The lack of adherence to U.S. audit regulations by these companies could potentially result in inaccurate financial reporting, creating risks for investors who are involved with these companies.

These types of concerns have been raised before, with some officials pointing out that Chinese companies listed in the U.S. have long avoided compliance with American auditing standards. This lack of transparency raises red flags for U.S. lawmakers.

In addition to concerns about national security, there are also worries about the influence that the Chinese government could exert over these companies. This influence could compromise the integrity of financial information provided by these companies, leading to potential risks for investors.

By calling for the delisting of these Chinese companies, the lawmakers are sending a strong message about the importance of maintaining transparency and adherence to regulations in the U.S. financial markets. It is crucial for companies listed in the U.S., regardless of their country of origin, to comply with auditing standards to ensure the integrity of financial information and protect investors.

The SEC will need to review the request made by the two lawmakers and assess whether the concerns raised are valid. Delisting these Chinese companies would have significant implications for both the companies involved and the U.S. financial markets. It could potentially lead to increased scrutiny of other foreign companies listed in the U.S.

Overall, this call to delist 25 Chinese companies, including Alibaba, is part of a larger effort to address concerns about compliance with U.S. regulations and potential risks to national security. The outcome of this request will have important implications for the future of Chinese companies listed in the U.S. and for investors who are involved with these companies.