Sen. Rick Scott and Rep. Moolenaar Call on SEC Chairman for Delis…

In a recent development in Washington, D.C., Senator Rick Scott and Congressman John Moolenaar have taken the lead in co-authoring a letter addressed to SEC Chairman Paul Atkins, urging the U.S. Securities and Exchange Commission (SEC) to consider delisting Chinese companies on U.S. stock exchanges that present substantial risks to national security and investor protection.

The letter emphasizes the concerns surrounding several Chinese corporations, such as Alibaba, Baidu, Hesai, and Zeekr, that leverage American capital markets while furthering the objectives of the Chinese Communist Party. Senator Scott and Congressman Moolenaar collaborated with Senator Jim Justice and Representatives Andy Barr, Gus Bilirakis, Ashley Hinson, Darin LaHood, Nathaniel Moran, Dan Newhouse, and Rob Wittman in this joint effort.

Senator Scott has persistently advocated for the strict enforcement of the Holding Foreign Companies Act to eliminate problematic entities from American exchanges. Additionally, he introduced a comprehensive set of five bills geared towards shielding American investors by thwarting Communist China’s influence and exploitation within U.S. financial markets.

The letter underscores the shared concern of the House Select Committee on the Strategic Competition Between the U.S. and the Chinese Communist Party and the Senate Committee on Aging along with other Members of Congress regarding the presence of Chinese corporations on U.S. stock exchanges. These companies not only benefit from American investor funds but also aid in supporting CCP’s strategic goals, which include military advancement and systemic human rights abuses.

The high-risk nature of these Chinese firms cuts across different industries yet shares common traits. Many of them are subject to U.S. government restrictions, possess concealed Party affiliations, contribute to Chinese military endeavors covertly, or have ties to forced labor practices.

Furthermore, certain companies utilize variable interest entity (VIE) structures, thereby clouding the extent of true control and leaving American investors with indirect ownership over the Chinese operating entities. The issues exemplified by firms like Alibaba, Baidu, Hesai, and Zeekr highlight the broader structural deficiencies arising from the CCP’s grip over Chinese businesses, which make their listing on U.S. exchanges untenable.

Taking into account Beijing’s military-civil fusion model, all data, capital, technology, and research—even when seemingly commercial—are eventually harnessed for malign state objectives. These objectives encompass surveillance, oppression, and military strategies aimed at compromising the U.S. military and endangering American troops. In light of these severe implications, the SEC is urged to take decisive action by considering the delisting of companies closely intertwined with China’s military-industrial complex or in fundamental conflict with U.S. disclosure regulations.

The joint congressional letter points out that there are currently 286 Chinese firms listed on major U.S. exchanges as of March 7, 2025. Urgency surrounds this call to action, underscoring the importance of safeguarding U.S. financial markets from exploitation by the CCP and its consequential threat to national security.