Gallagher, Colleagues Introduce Bill that Bans Harmful Chinese Companies from Exploiting U.S. Capital Markets
March 3, 2021
WASHINGTON, D.C. — Rep. Mike Gallagher (R-WI), alongside Reps. Liz Cheney (R-WY) and Chris Stewart (R-UT), today introduced the American Financial Markets Integrity and Security Act, legislation that would prohibit Chinese companies 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. In addition to prohibiting these companies from being listed on securities exchanges, this bill would also prohibit investment from investment companies, insurance companies, and retirement funds.
Senators Marco Rubio (R-FL), Mike Braun (R-IN), Tom Cotton (R-AR), Ben Sasse (R-NE), John Kennedy (R-LA) and Rick Scott (R-FL) introduced companion legislation in the U.S. Senate. Click HERE for bill text.
“The Chinese Communist Party’s campaign to dominate the technologies of the future poses an existential threat to our values, and underscores the need for the United States to selectively decouple its economy from China’s. One step towards beginning this process is through preventing malign Chinese actors from exploiting our capital markets to finance their efforts,” said Rep. Gallagher. “This legislation takes important steps to not only highlight ties between Chinese firms and the People’s Liberation Army, but also ensure that no American unwittingly subsidizes the Party’s efforts to undermine our values.”
“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,” said Sen. Rubio. “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.”
"The Chinese Communist Party is working to undermine the United States across nearly every domain, from defense to technology and industry. Xi Jinping is carrying out this malign campaign by exploiting America's free and open system," said Rep. Cheney. "This bill is a critical step toward countering the CCP and ensuring that its companies cannot exploit U.S. markets to their advantage."
“U.S. capital markets are the envy of the world. Access to these markets is a privilege. We should be under no obligation to allow our adversaries, that intend to do us harm, access to our free and open system. This bill protects our markets from exploitation and bans companies with ties to the Chinese Communist Party and their military, espionage, and human rights abuses," said Rep. Stewart.
Currently, there are a number of Chinese companies, including over thirty identified on lists released in June and August 2020 by the Pentagon, accessing U.S. capital markets. This includes those companies that have been sanctioned by the U.S. government but are operating in the U.S. capital market system and are involved in the Communist Party’s military, espionage, human rights abuses, “Military-Civil Fusion Strategy,” and the ‘Made in China 2025’ industrial policy.
In 2019, Rep. Gallagher and Sen. Rubio introduced the Ensuring Quality Information and Transparency for Abroad-Based Listings on our Exchanges (EQUITABLE) Act, which would ban Chinese and foreign firms that disregard U.S. accounting laws from being listed on U.S. exchanges.