WASHINGTON — The Coalition for a Prosperous America (CPA) applauded the House Republican Study Committee (RSC) for including in its China bill a provision that would immediately prohibit U.S. investment in China A-Shares on certain CCP-controlled securities exchanges by prohibiting the purchase, sale, and ownership of such securities by U.S. investors. This week, the Chief Investment Officer for Goldman Sachs gave a warning to clients saying, “Our view is that one should not invest in China.”
The RSC bill also includes a provision to prohibit outbound investment to China in specific sectors that pose a risk to U.S. economic and national security, an effort that has been blocked by retiring House Financial Services Committee Chairman Patrick McHenry (R-NC). Senator John Cornyn (R-TX) told Politico last year that, “Almost everybody in the House agrees with us. It’s Chairman McHenry who’s the one who derailed it.”
Last week, RSC Chairman Kevin Hern (OK-01) and RSC National Security Task Force Chairman Joe Wilson (SC-02) introduced the Countering Communist China Act (HR 7476), along with 43 original co-sponsors. The original cosponsors include Rep. French Hill (R-AR), the Vice Chairman of the House Financial Services Committee, along with Committee members Rep. Alex Mooney (R-WV) and Rep. Zach Nunn (R-IA).
“The RSC bill sends a strong message to lawmakers like Financial Services Committee Chairman Patrick McHenry, who has consistently done the bidding of Wall Street and the CPP,” said Michael Stumo, CEO of CPA. “Congress has overwhelming evidence of how U.S. capital is being exploited by the CCP to fund their military modernization, Orwellian surveillance state, human rights abuses, and genocide. Despite this, McHenry is still opposed to putting an end to this national security threat. It’s time for Speaker Johnson to override McHenry and bring legislation to the House floor immediately.”
CPA has written extensively on how American investors are exposed to thousands of bad actor Chinese A-Share companies. In December, CPA Co-Founder and Vice Chair Dan DiMicco wrote in The Charlotte Observer that McHenry’s blockade of efforts to address China A-Shares and outbound investment is “dangerously foolish.”
Last year, CPA released a report showing that Vanguard, which has roughly $8 trillion in global assets under management, is investing the retirement and investment dollars of the American people in bad actor Chinese “A-Share” companies at a level unmatched in the U.S., including 60 Chinese companies linked to China’s military and its defense sector, as well as eight companies currently sanctioned by the U.S. government for human rights abuses in Xinjiang.
As first reported by the Financial Times, “Vanguard, the world’s second-largest asset manager, is acting as a pipeline through which US investment dollars are being funneled into Chinese military companies and corporations sanctioned over human rights abuses.”
Related:
- New China Committee Report Documents American VC Firms Investing Billions into PRC Companies Fueling the CCP’s Military, Surveillance State, and Uyghur Genocide
- New Report Uncovers American Investor Funding of China-Iran Strategic Partnership
- CPA Report Details How Vanguard and FTSE Russell Funnel Billions of U.S. Investor Capital to the CCP and PLA -Linked Companies
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