WASHINGTON, D.C. – Today, Senator Rick Scott announced a package of four finance-focused bills to hold Communist China accountable and better protect American investors and families. 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.
Senator Rick Scott said, “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.”
Senator Scott’s package to hold Communist China accountable include the following bills:
The Sanction Transactions Originating from Pernicious Chinese Companies and Policies (STOP CCP) Act, cosponsored by Senators Joni Ernst, Ted Cruz, Bill Hagerty and Mike Braun
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.
The bipartisan Protecting American Capital Act, co-led with Senator Jeanne Shaheen
The Chinese Communist Party continues to benefit from American capital entering their markets while providing little to no financial data to validate their domestic economic claims. This is both an economic gamble as well as a serious national security risk for the United States. This bill would require the U.S. Department of the Treasury to analyze and submit an annual report to congress on the United States’ financial exposure among certain sectors of the Chinese economy that pose significant risk.
The Transaction and Sourcing Knowledge (TASK) Act, cosponsored by Senators Marco Rubio and Mike Braun
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.
The Secure America’s Financial Exchanges (SAFE) Act, cosponsored by Senator Mike Braun
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).