WASHINGTON, D.C. — The Coalition for a Prosperous America (CPA) applauds Senator Rick Scott (R-FL) for introducing a comprehensive package of five bills aimed at safeguarding American investors and addressing the Chinese Communist Party’s (CCP) exploitation of U.S. financial markets. This legislative initiative aligns with CPA’s commitment to ensuring that U.S. capital does not inadvertently support adversarial regimes that undermine America’s economic and national security interests.
Senator Scott’s legislative package includes:
- Trading and Investing with Clear Knowledge and Expectations about Risk (TICKER) Act: Mandates the Securities and Exchange Commission (SEC) to identify Variable Interest Entities (VIEs) linked to Chinese companies in their stock trading symbols on U.S. exchanges and requires broker-dealers to provide risk warning labels on the potential lack of legal recourse for investors in such entities.
- Protecting American Capital Act: Prohibits U.S. index funds and registered investment companies from investing in Chinese companies, thereby preventing American capital from funding entities that may pose security risks.
- Secure America’s Financial Exchanges (SAFE) Act: Requires the SEC to implement specific disclosure requirements for Chinese-based companies seeking access to U.S. exchanges through Initial Public Offerings (IPOs), enhancing transparency and protecting investors.
- Transaction and Sourcing Knowledge (TASK) Act: Directs the SEC to report on specific sourcing and transaction activities within the Xinjiang province, known for forced labor practices, and requires an annual report on the presence of CCP committee members in company operations.
- Sanction Transactions Originating from Pernicious Chinese Companies and Policies (STOP CCP) Act: Expands sanctions and closes existing loopholes to hold the CCP accountable for its malign activities.
“The CCP’s exploitation of U.S. capital markets poses a significant threat to our economic and national security,” said Zach Mottl, Chairman of CPA. “Senator Scott’s legislative package is a crucial step toward ensuring that American investments do not inadvertently fund activities that are counter to our values and interests. CPA fully supports these measures and urges Congress to act swiftly in their passage.”
CPA has consistently advocated for policies that prevent U.S. capital from financing entities that undermine American interests. Last year, CPA released a list of legislation it endorses to restrict U.S. capital flows to China. In June 2024, CPA supported Senator Scott’s previous efforts to restrict Wall Street investments in China, emphasizing the need to protect American investors and uphold the integrity of U.S. financial markets. CPA also supported a bipartisan legislative package introduced by Congresswoman Victoria Spartz (R-IN-05) and Congressman Brad Sherman (D-CA-32).
Last year, CPA released a new “case study” report to Congress that highlights the growing influence of the CCP over U.S. financial firms. The report titled “Inside the Wire: Wall Street’s Joint Ventures with the Chinese Communist Party” reveals how U.S. financial giants — including BlackRock and Goldman Sachs — have formed joint ventures (JVs) with state banks controlled by the Chinese Communist Party (CCP), giving Beijing unprecedented influence over major U.S. financial firms and Wall Street executives. These partnerships provide the CCP with dangerous leverage that poses a serious risk to U.S. economic and national security.
This report follows CPA’s two prior reports onVanguard and FTSE Russell, as well as BlackRock and MSCI, that detail how Wall Street asset managers and index providers funnel U.S. investor capital into companies linked to CCP firms that have been sanctioned by the U.S. government for human rights abuses and helping advance the lethality of the PLA.
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