Two Republican lawmakers have called on the U.S. Securities and Exchange Commission (SEC) to delist several Chinese companies from American stock exchanges, citing national security concerns. According to the Financial Times, House China Committee Chair John Moolenaar and Senate Aging Committee Chair Rick Scott sent a letter to SEC Chair Paul Atkins, urging action against 25 Chinese firms, including Alibaba (NYSE:BABA), Baidu (NASDAQ:BIDU), JD.com, and Weibo (NASDAQ:WB).
The lawmakers argue these companies are linked to China’s military and benefit from U.S. investor capital while allegedly supporting the strategic goals of the Chinese Communist Party, including military modernization and human rights violations. They claim that, despite their commercial appearance, the firms ultimately serve state interests and pose risks to American investors.
Moolenaar and Scott emphasized that the SEC has authority under the Holding Foreign Companies Accountable Act to suspend trading and compel delistings if firms fail to comply with U.S. audit regulations or present national security threats.
The request comes amid renewed tensions in U.S.-China relations, including the ongoing trade war and scrutiny of Chinese tech firms. Over 100 Chinese companies are currently listed on U.S. exchanges, representing a combined market capitalization of approximately $1 trillion. The potential delisting of major players like Alibaba and Baidu could significantly impact global markets and investor confidence.
As of now, the SEC and the companies mentioned have not responded to requests for comment. Meanwhile, Beijing has indicated it is evaluating Washington’s offer to resume trade talks, possibly signaling a de-escalation in trade hostilities.
This development raises fresh concerns among investors over the future of Chinese stocks in the U.S. and underscores growing bipartisan pressure to address perceived security risks tied to Chinese tech giants.