Two influential Republican lawmakers have called on the US Securities and Exchange Commission (SEC) to delist dozens of Chinese companies, including tech giants Alibaba, Baidu, JD.com, and Weibo, over allegations that they pose a significant national security risk and are tied to the Chinese military, the Financial Times reported.
John Moolenaar, chair of the House Select Committee on China, and Senator Rick Scott, chair of the Senate Committee on Aging, sent a letter to newly appointed SEC chair Paul Atkins on Friday, urging him to invoke his authority under the Holding Foreign Companies Accountable Act to suspend trading of 25 Chinese firms on American stock exchanges. The lawmakers said these companies benefit from US investor capital while aiding the Chinese Communist Party’s (CCP) military ambitions and human rights violations.
“These entities benefit from American investor capital while advancing the strategic objectives of the Chinese Communist Party... They also pose an unacceptable risk to American investors,” the letter stated, as obtained by the Financial Times.
The lawmakers cited China’s military-civil fusion strategy, which legally compels private companies to cooperate with the People’s Liberation Army (PLA) when requested. They warned that even seemingly commercial enterprises are ultimately “harnessed for nefarious state purposes” under Beijing’s control.
A growing bipartisan campaign to cut Chinese access to US capital
The latest effort reflects broader moves in Washington to reduce US economic and technological entanglements with China, especially in sectors with national security implications. The letter argues that Beijing’s grip on Chinese firms is often “systemically concealed” from American investors and that enhanced disclosures cannot mitigate the unpredictable legal and political risks involved.
Among the companies named are:
• Pony.ai, an autonomous vehicle firm.
• Hesai, a lidar tech provider previously blacklisted by the Pentagon for military ties, which the company denies.
• Tencent Music, a streaming platform already flagged by the Pentagon.
• Daqo New Energy, a polysilicon maker accused of using forced labour in Xinjiang.
The letter accuses these companies of being “actively integrated into the Chinese military and surveillance apparatus,” and calls for immediate action to protect US markets and investors.
SEC leadership change puts spotlight on policy direction
Paul Atkins, who assumed leadership of the SEC last month, has yet to reveal his approach toward Chinese firms. His predecessor, Gary Gensler, had tightened scrutiny over foreign listings, including those from China. During his confirmation hearing, Atkins acknowledged the importance of “accounting and auditing” to investor protection and pledged to uphold regulatory standards.
Meanwhile, former US-China Economic and Security Review Commission chair Roger Robinson said the era of American capital underwriting Chinese state-linked firms is drawing to a close. “This multitrillion-dollar US investor underwriting of our principal adversary... will now gradually draw to a close,” he said.
As of March 2025, 286 Chinese companies remain listed on US exchanges, according to the US-China Economic and Security Review Commission. That number could shrink if the SEC takes the proposed action.
China responds, accusing US of overreach
The Chinese embassy in Washington strongly objected to the push, accusing the US of weaponizing national security concerns to suppress Chinese firms. “We oppose turning trade and technological issues into political weapons,” said embassy spokesperson Liu Pengyu.
The SEC stated on Friday that Chair Atkins would respond directly to the lawmakers. The developments come amid escalating economic tensions between the US and China, which some analysts fear could evolve from a trade war into a full-blown capital war.
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