- Republican lawmakers John Moolenaar and Rick Scott urged the SEC to delist 25 Chinese companies, including Alibaba, Baidu, JD.com, and Weibo, from U.S. exchanges, citing military ties and national security risks, as reported by the Financial Times.
- The lawmakers claim these firms, with a $1 trillion collective market cap, use American investor capital to support the Chinese Communist Party’s military and human rights violations.
- The call leverages the Holding Foreign Companies Accountable Act to compel delistings amid U.S.-China trade tensions, with Beijing evaluating talks to address Trump’s tariffs.
The Financial Times reported that Republican lawmakers John Moolenaar, chair of the House China committee, and Rick Scott, chair of the Senate committee on aging, have called on the U.S. Securities and Exchange Commission to delist 25 Chinese companies, including Alibaba Group, Baidu, JD.com, and Weibo, from U.S. exchanges, citing national security risks due to alleged military ties. With a collective market capitalization of approximately $1 trillion, more than 100 Chinese firms listed on U.S. exchanges face heightened scrutiny as the lawmakers argue these entities leverage American investor capital to advance the Chinese Communist Party’s objectives, including military modernization and human rights violations. The letter to SEC chair Paul Atkins, as reported by the Financial Times, emphasizes that these companies, despite their commercial facades, serve state-driven purposes that pose unacceptable risks to U.S. investors.
The lawmakers invoke the Holding Foreign Companies Accountable Act, which grants the SEC authority to suspend trading and enforce delistings for non-compliance with U.S. auditing standards, as a mechanism to address these concerns. This push aligns with escalating U.S.-China tensions, exacerbated by President Donald Trump’s tariff policies, which have fueled a trade war disrupting global markets. Beijing’s indication on Friday that it is evaluating Washington’s offer for trade talks suggests a potential de-escalation, but the specter of delisting adds a new layer of complexity to bilateral relations.
The call to action reflects broader geopolitical and economic frictions, as the U.S. seeks to curb China’s access to its capital markets amid fears of strategic exploitation.
The Financial Times report highlights how these developments could reshape the landscape for Chinese companies, whose significant presence on U.S. exchanges has long been a cornerstone of their global financial strategy, while testing the SEC’s resolve to balance market integrity with national security imperatives.
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