U.S. Senator Cindy Hyde-Smith has announced her support for two legislative measures aimed at curbing Communist China’s influence in American financial markets. The Mississippi Republican is backing the Secure America’s Finance Exchanges (SAFE) Act and the Sanction Transactions Originating from Pernicious Chinese Companies and Policies (STOP CCP) Act, both introduced by Senator Rick Scott of Florida.
Hyde-Smith emphasized the need for decisive action against what she described as China’s misuse of rules in dealings with U.S. companies and markets. “The United States must act more forcefully to confront Communist China’s blatant abuse of the rules in its interactions with American companies and financial markets,” she stated.
Senator Scott echoed these concerns, highlighting the risks posed by Chinese companies operating without adequate oversight. “Communist China has made clear they’re willing to use any means necessary to become the dominant global power, including exploiting Americans, our financial markets, and our economy,” he said.
The SAFE Act proposes that the Securities and Exchange Commission (SEC) enforce disclosure requirements on Chinese-based firms looking to access U.S. exchanges via Initial Public Offerings (IPOs). This includes revealing any ties to the Chinese Communist Party or employment history within it. The aim is to make investors aware of potential connections between these companies and the CCP.
The STOP CCP Act seeks to broaden restrictions on entities associated with the CCP, ensuring that sanctioned firms cannot bypass sanctions through restructuring or creating new subsidiaries. It mandates automatic sanctions across all U.S. authorities for any company already sanctioned under one authority.
Both pieces of legislation have been sent to the Senate Committee on Banking, Housing, and Urban Affairs for further evaluation.
