Sens. Rick Scott & Bob Casey Introduce Legislation to Reveal Private Equity Investments in China, Foreign Adversaries

November 9, 2023

The legislation would provide the U.S. public transparency into private equity investments in countries of concern 

WASHINGTON, D.C. – Today, Senators Rick Scott and Bob Casey (D-PA) introduced the Disclosing Investment in Foreign Adversaries Act to provide transparency into investments made by American private equity firms in countries of concern like China and Russia. Currently, private equity and venture capital firms can invest Americans’ savings and pensions in China without the American people’s knowledge. The legislation would require private equity, mutual funds and ETFs to annually disclose the percentage of any assets invested in countries like China to the Securities and Exchange Commission (SEC); require the SEC to publicly release a report of firms investing assets in countries of concern and the percentage of those invested assets; entities selling stock in the private markets would also be required to disclose the recipient of the investment, the intended location of the investment, and the investment’s intended purpose. Without the ability for the U.S. public to monitor investments made by large private equity and venture capital funds in foreign economies, American states, municipalities, universities, unions, and pension funds could unknowingly be investing in the United States’ economic competitors like China and Russia.

Senator Rick Scott said, “Our adversaries, like Communist China, benefit from a complete lack of transparency allowing them to hide and fund bad behavior—especially when it comes to financial markets. These foreign adversaries lie, cheat and steal, and it’s almost impossible to call them out for it. It is time to stop sending American dollars to these countries of concern. I am proud to lead this bipartisan charge with my colleague Senator Casey as we work across the aisle to hold bad actors accountable.”

Senator Bob Casey said, “Americans deserve to know where and how their savings are being invested. It is vital to know if our money is being used to boost the economies of our adversaries who steal our technological know-how and steal our jobs. This legislation will help the United States better understand how our own dollars are being used to advance the interests of countries like China.”

American Securities Association President & CEO Chris Iacovella said, “The Chinese Communist Party has been methodically exploiting U.S. capital markets and American investors to fund its economic and military rise for far too long. ASA commends Senator Bob Casey (D-PA) and Senator Rick Scott (R-FL) for introducing the Disclosing Investments in Foreign Adversaries Act, which would force Wall Street to disclose its investments in China, Iran, Russia, and North Korea. A strong, bipartisan consensus in Washington has emerged that wants to end the Chinese Communist Party’s access to American capital, and this Congress should take advantage of that momentum to protect American investors and the integrity of our capital markets.”

FDD Action said, "The American people deserve to know whether their hard-earned savings are invested here at home or sent to adversaries abroad. The Disclosing Investments in Foreign Adversaries Act brings much-needed transparency to the financial sector by enhancing reporting requirements for U.S. investments in countries like China, Iran, Russia, and North Korea. This commonsense legislation protects our national security, promotes greater financial oversight, and ensures that U.S. funds are not strengthening the technological capabilities and industrial bases of America’s adversaries. FDD Action is pleased to endorse this legislation to safeguard our financial future and strategic interests.”