Contra-China Flurry of Bills Could Further Limit Chinese Financial Activities in US

Contra-China Flurry of Bills Could Further Limit Chinese Financial Activities in US

Mateo Guillamont
Mateo Guillamont
June 27, 2024

US Senator Rick Scott (R-FL) has introduced various bills limiting China’s ability to do business in the US.

If passed, the bills would prohibit American companies from investing in Chinese companies, bar individuals from purchasing Chinese stocks, and prevent Chinese companies from going public.

Senator Scott justified his bills by claiming China was profiting off of Americans’ hard work.

“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,” said Scott “Now is the time to take action to ensure that those nest eggs are in the right hands away from malign influence.”

The first of Scott’s bills, the Safeguarding U.S. Financial Leadership Against Communist China Act: would prohibit index funds and registered investment companies from investing in Chinese firms.

Respective US companies with investments in Chinese companies would have to submit a divestment plan within 180 days of the bill’s enactment or face $500,000 in daily civil penalties.

Next, the Stop Funding the CCP Through A-Shares Act would outlaw American investors’ purchase of “A-Shares.”

A-shares are a type of company stock that exclusively sell in Chinese financial markets.

Finally, the Timely Rejection of Adversarial and Dangerous Enterprises and Securing American Financial Exchanges (TRADE SAFE) Act bans certain Chinese companies from going public.

If passed, the TRADE SAFE Act would prevent all companies listed on a series of US government blacklists, including many Chinese ones, from selling their securities on US exchanges.

Senators Marco Rubio (R-FL) and Marsha Blackburn (R-TN) cosponsored the TRADE SAFE Act.

Scott has consistently proposed bills to hinder China’s capacity to profit off American businesses and to terminate any US government support for China.

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Mateo Guillamont

Mateo Guillamont

Mateo is a Miami-based political reporter covering national and local politics

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