ASA Urges Competes Act Conferees to Hold China Accountable
Supports bipartisan efforts to remove Chinese companies from Thrift Savings Plan
WASHINGTON – The American Securities Association (ASA) today sent a letter to Congressional leadership urging the Competes Act conferees to hold China accountable and address some of the biggest threats facing investors and our economy. In the letter, ASA outlined its support for several provisions and backed bipartisan efforts to remove Chinese companies from the Thrift Savings Plan.
“ASA applauds Congress for acting in a bipartisan manner to hold China accountable and prioritize America’s economic and national security,” said ASA CEO Chris Iacovella. “By passing the Accelerating Holding Foreign Companies Accountable Act, removing Chinese companies from the Thrift Savings Plan, and ending the CCP’s use of the 'passive index loophole', Congress can take another important step to stop China’s infiltration of the U.S. capital markets.”
In the letter, ASA called on the conferees to support the following provisions:
AHFCAA of the America COMPETES Act regarding Chinese companies listed on U.S. exchanges.
The Accelerating Holding Foreign Companies Accountable Act (AHFCAA) would delist Chinese companies that refuse to abide by U.S. corporate governance and auditing standards from U.S. exchanges sooner than current law. Congress has rightfully concluded that there is no good reason to allow such companies to list in the United States and expose American investors to fraud perpetrated by the Chinese Communist Party (CCP.) The Senate recently passed the AHFCAA by unanimous consent, demonstrating once again the bipartisan nature of this issue, and we urge Congress to include this provision in the final legislation.
Rep. Spanberger provision of COMPETES Act - China Financial Threat Mitigation
The Rep. Spanberger provision would require the Treasury Department to provide Congress with a report regarding the threats to financial stability posed by China, along with recommendations for how the United States should use its influence with international organizations to address the China threat. To date, the Treasury Department and the Financial Stability Oversight Council (FSOC) have done little to examine potential risks posed by China. This report would be an important step towards adopting an all-of-government approach towards countering threats that are unique to China.
Additionally, ASA strongly opposes the Rep. Sherman private company disclosure amendment which would impose onerous and unprecedented mandates upon private businesses that raise capital using certain exemptions under the securities laws. It would also grant the SEC unfettered authority to write additional rules to require information that private companies and private funds would have to disclose – either to the SEC or publicly.
ASA’s regional financial services companies work in communities across the country to create jobs, grow the economy, and increase prosperity for all Americans. The ASA exclusively represents the capital market and private client interests of its members and seeks to promote free market principles making it easier to access financial advice and capital. ASA members help Americans save for retirement, provide Main Street businesses with capital to grow, and advise hardworking Americans how to create and preserve wealth. For the latest updates follow @AmerSecurities and learn more at http://americansecurities.org/.