WASHINGTON (LEX 18) — U.S. Rep. Andy Barr has introduced new legislation that would require companies listed on U.S. exchanges to disclose information about their connection to or financial support from the Chinese Communist Party, the Kentucky Republican announced in a release issued Wednesday.
H.R. 7924, also known as the Transparency in Chinese Government Investment Act, defines financial support as subsidies, grants, loans, loan guarantees, tax breaks, tax incentives, or any preferential treatment related to Chinese government procurement policies.
“This legislation would provide unprecedented transparency for American investors with respect to CCP investments in publicly traded companies,” Barr said. “CCP investment in American companies frequently leads to CCP manipulation of American companies and investors — whether it be the forced transfer of technology or the outright theft of American intellectual property. These are just two examples of many tactics used by the CCP that hijack American innovation, devalue American capital markets and most importantly threaten the investments of millions of American citizens.”
The legislation also stipulates that companies must identify any of their officers or directors who hold or formerly held positions with the CCP, Chinese government or other Chinese affiliations specified in the TCGIA.
Companies must disclose any association with Chinese strategic initiatives such as “Made in China 2025,” or the “New Generation Artificial Intelligence Development Plan,” in addition to other initiatives outlined in the TCGIA.
According to the release, 172 Chinese firms were listed on major U.S. exchanges since September 2019 and have a total market capitalization of more than $1 trillion.