Florida Senator Rick Scott announced a comprehensive package of three finance-focused bills to hold Communist China accountable and safeguard American investors and families from unintentionally supporting the malign activity ongoing from the Chinese Communist Party to undermine American markets.
Senator Scott has been advocating for the decoupling of operations and investments from what he calls “the genocidal, communist Chinese regime.” The Florida Senator said this proposed legislation will safeguard Americans’ hard-earned investments and retirements, prevent funding the CCP’s malign activities and legitimizing their nefarious financial regime, and secure American financial exchanges.
“Communist China will stop at nothing to exploit American markets and take advantage of U.S. investors and companies doing business within its country,” Republican Senator Rick Scott said. “Hardworking Americans are doing their best right now to save as much money as possible, especially as Bidenflation continues to work against them and put their retirement goals further out of reach. Now is the time to take action to ensure that those nest eggs are in the right hands away from malign influence. Additionally, these pieces of legislation will ensure that no American dollars will end up in the hands of a country actively working against America in an attempt to undermine our national security.
Senator Scott’s package of bills to hold Communist China accountable includes the following legislation:
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- The Safeguarding U.S. Financial Leadership Against Communist China Act would prohibit index and mutual funds from investing in a Chinese company with a one-year divestment period and civil penalties for violations thereafter. Index and mutual fund companies must also provide a detailed divestment plan to its investors and shareholders within 180 days of enactment with $500,000 daily civil penalties for companies who do not comply.
- Additionally, the Safeguarding U.S. Financial Leadership Against Communist China Act would protect investors by putting an end to the mindless approach to investing in Chinese companies and prevent investors from being misled regarding the value of an underlying Chinese company. It would stop once and for all the investment of U.S. capital into our adversary, Communist China.
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- The Stop Funding the CCP Through A-Shares Act would prevent the funding of malign activities of the Chinese Communist Party via the sale of “A-Shares” on CCP-controlled securities exchanges by prohibiting the purchase, sale, and ownership of such securities by U.S. investors.
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- This bill would prohibit companies on U.S. Government ‘blacklists’ from being allowed to IPO and list their securities on U.S. exchanges. These blacklists include the:
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- Non-SDN Chinese Military-Industrial Complex (CMIC) List
- Federal Communications Commission (FCC)
- Uyghur Forced Labor Prevention Act (UFLPA) Entity List
- 1260H List
- Holding Foreign Companies Accountable Act (HFCAA) List
- Military end user (MEU) List
- Commerce Department Bureau of Industry and Security (BIS) List
- Consolidated Screening List
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- It would also require the SEC to provide a report on the companies that are currently listed on U.S. exchanges that also fall under these lists within 180 days of the bill’s enactment.
“Putting real protections in place is paramount to ensuring Americans’ money is working for them—and not helping fund a foreign military that wishes to destroy our way of life,” Florida Senator Rick Scott added. Every American deserves clarity and peace of mind about how their money is being invested, and this legislation will help bolster those transparency efforts.”
This Republican package of bills has been endorsed by the American Securities Association, the Coalition for a Prosperous America, and Roger W. Robinson, Jr., the Former Chairman of the Congressional U.S.-China Economic and Security Review Commission.
