US Lawmakers Urge SEC to Delist Alibaba, Chinese Firms over National Security: Report
In a move that is likely to send shockwaves across the global financial landscape, two US lawmakers have called on the country’s Securities and Exchange Commission (SEC) to delist 25 Chinese companies, including the e-commerce giant Alibaba, citing national security risks. According to a report by the Financial Times, the lawmakers have claimed that these companies benefit from US investor capital while aiding China’s military modernization goals. The lawmakers have also accused the firms of violating human rights.
The lawmakers, Senator Marco Rubio and Representative Mike Gallagher, have written a letter to the SEC, urging the agency to take immediate action to delist the companies. The letter claims that these Chinese firms have significant ties to the Chinese military, and by investing in them, US investors are inadvertently supporting China’s military modernization goals.
The list of companies includes not only Alibaba, but also other well-known Chinese firms such as Baidu, JD.com, and Tencent Holdings. The lawmakers have argued that these companies are not transparent about their ties to the Chinese military, making it difficult for US investors to make informed decisions about where to invest their money.
The lawmakers have also accused the companies of violating human rights, citing instances of forced labor, censorship, and persecution of minority groups. They have argued that by investing in these companies, US investors are complicit in these human rights abuses.
The move comes at a time when there is growing concern about the risks posed by Chinese companies to US national security. The US government has already taken steps to restrict the ability of Chinese companies to access US capital markets, citing concerns about the risks of investing in companies that are subject to significant government influence.
The delisting of these companies would have significant implications for the global financial markets. It would not only affect the companies themselves, but also the investors who have invested in them. It would also have implications for the companies that do business with these Chinese firms, as well as the industries that rely on them.
The move is also likely to have implications for the relationship between the US and China. The two countries have been engaged in a trade war for several years, and the delisting of these companies could be seen as a major escalation of the conflict.
In response to the letter, a spokesperson for the SEC said that the agency is committed to protecting US investors and the integrity of the financial markets. The spokesperson said that the agency is reviewing the letter and will take appropriate action to address the concerns raised by the lawmakers.
The move is also likely to have implications for the global economy. The Chinese companies that are included on the list of companies to be delisted are significant players in the global economy, and their delisting could have significant consequences for the global financial markets.
In conclusion, the move by US lawmakers to urge the SEC to delist 25 Chinese companies, including Alibaba, is a significant development that has far-reaching implications for the global financial landscape. The lawmakers have raised concerns about the national security risks posed by these companies, as well as their human rights record. The move is likely to have significant implications for the companies themselves, as well as the investors who have invested in them. It will be interesting to see how this develops in the coming weeks and months.
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