Traders work during the IPO for Chinese ride-hailing company Didi Global Inc. on the New York Stock Exchange (NYSE) floor in New York City on June 30, 2021. Brendan McDermid/Reuters
Bipartisan momentum is building in Congress to push the Securities and Exchange Commission (SEC) toward delisting Chinese firms with ties to the Chinese Communist Party (CCP) and human rights abuses.
Earlier in July, the U.S.–China Business Council reported that the SEC is under increasing pressure to consider regulatory changes that would limit Chinese firms’ access to U.S. stock markets, with new regulations expected to roll out soon. Experts say this could protect American investors and shield state pension funds from irregular losses.
Narrowing Exemptions for Foreign Firms
Under pressure from Congress and 21 state treasurers, the SEC is now reviewing whether to tighten rules that currently allow many Chinese companies to avoid U.S. disclosure requirements. On June 4, the agency opened a 90-day public comment period on a proposal to redefine the category of “foreign private issuers,” a designation that currently includes all China-based firms listed in the United States.
