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US lawmaker seeks to ban Chinese firms from US capital markets

Jul 01, 2020 | 🚀 Fathership
WASHINGTON: A top senator is preparing a bill to ban Chinese companies from U.S. capital markets if they engage in spying, human rights abuse or support China's military, threatening a financial blow as tensions mount over COVID-19 and Beijing's crackdown on Hong Kong.

"The Chinese Communist Party's exploitation of U.S. capital markets is a clear and ongoing risk to U.S. economic and national security that must be addressed," Rubio said in a statement to Reuters.

Roger Robinson, a former White House official who supports curbing Chinese access to U.S. investors, said 13 of the 20 companies designated by the Defense Department last week as Chinese-military-backed have a presence in U.S. capital markets.

"The list of PLA-affiliated Chinese enterprises released by the Pentagon is symptomatic of the broader challenge represented by Chinese companies in our capital markets from an investor protection, national security and human rights perspective," said Robinson, referring to the People's Liberation Army.

China hardliners in Washington have already targeted China's access to U.S. capital markets as a pressure point, succeeding in halting plans by federal pension fund administrators to allow a US$40 billion fund to track an index that includes controversial Chinese companies.