Lawmakers in the U.S. call for Chinese companies to be removed from stock exchanges: source
Rewritten Article:
Calm down, folks! Two top congressional committee chairs have given the Securities and Exchange Commission a stern nudge. They're requesting the delisting of Alibaba Group Holding (NYSE:BABA) and other Chinese tech giants, like Baidu, JD.com, and Weibo. According to the Financial Times, these companies are under the microscope due to allegations of ties with China's military.
Now, here's the lowdown. U.S. lawmakers are worried about these Chinese companies' questionable ties to the country's military and the government's military-civil fusion strategy. This strategy, backed by law, requires private companies to help the People's Liberation Army (PLA) when their services are requested, possibly allowing these commercial entities to serve military purposes under Beijing's command.[1][3][5]
The key accusations against these companies are that they advance the strategic goals of the Chinese Communist Party (CCP), supporting military modernization, and they're involved in severe human rights violations.[1][4] Lawmakers believe that these companies pose a significant national security risk and present an unacceptable risk to American investors by potentially using U.S. capital to support military objectives that may not align with U.S. interests.[3][5]
Given these concerns, lawmakers are urging the U.S. Securities and Exchange Commission (SEC) to kick these companies off U.S. exchanges under the Holding Foreign Companies Accountable Act, in a bid to safeguard U.S. investors and national security.[2][3] Let's hope for a fair and transparent resolution on this topic.
- The chairs of two congressional committees have urged the Securities and Exchange Commission (SEC) to delist Alibaba Group Holding (NYSE: BABA) and other Chinese tech giants due to their questionable ties with China's military and potential involvement in human rights violations.
- The U.S. lawmakers' concern stems from the Chinese government's military-civil fusion strategy, which legally requires private companies to support the People's Liberation Army (PLA) when requested, potentially allowing these commercial entities to serve military purposes under Beijing's command.
- These companies are accused of advancing the strategic goals of the Chinese Communist Party (CCP), supporting military modernization, and posing a significant national security risk to the United States.
- In an attempt to safeguard U.S. investors and national security, lawmakers have urged the SEC to remove these companies from U.S. exchanges under the Holding Foreign Companies Accountable Act.
