Washington, DC – Congresswoman Claudia Tenney (NY-22) today introduced the No Chinese Communist Subterfuge via Unregistered Regime Presence Rendered Indivisible to Shareholders and Equivalent (SURPRISE) Parties Act. This bill will require any company publicly traded in the United States to disclose their ties to the Chinese Communist Party (CCP). As economic integration between China and the rest of the world deepens, the CCP has increased its presence within and control over non-state firms operating in China, including using CCP cells within companies and CCP members on corporate boards. The no Chinese Communist SURPRISE Parties Act will shine a light on these activities and provide investors and the public with information on CCP activities inside multinational corporations.
“Americans have a right to know who is really running the show when they choose to invest in a company listed on an American stock exchange. The Chinese Communist Party’s malign influence runs deep, and the No Chinese Communist SURPRISE Parties Act will help bring to light the areas of influence and leverage that the CCP has over publicly listed companies and reduce information asymmetries in the financial marketplace. I am grateful for the support of my colleagues and look forward to moving this bicameral bill through the legislative process, especially as House Democrats push legislation that will weaken the United States’ standing on the world stage and strengthen China,” said Tenney.
“U.S.-listed companies should not act as tools of the Chinese Communist Party, and American investors are entitled to know if that is the case,” Senator Rubio said. “My bill provides a common-sense solution to yet another attempt by Beijing to subvert the United States by deepening its influence over the American financial marketplace.”
“Communist China continues to exert control over American companies by forcing them to develop communist party organizations within their ranks,” Senator Blackburn said. “American investors have the right to know whether or not their hard-earned money is propping up companies that the CCP controls.”
Publicly traded companies are required to file annual disclosures of relevant information, including their financial data and analyses of their strengths, weaknesses, opportunities, and threats. The Securities and Exchange Commission (SEC) is responsible for developing and enforcing disclosure requirements for firms listed on U.S. exchanges. Currently, no requirement exists for companies to disclose their ties to the CCP, including whether a firm has CCP party cells within its operations. This requirement is more relevant than ever as the CCP expands its malign influence over non-state actors operating in China.
The No Chinese Communist SURPRISE Parties Act is cosponsored by Reps. Cathy McMorris Rodgers (WA), Randy Weber (TX), Louie Gohmert (TX), Gregory Steube (FL), Ronny Jackson (FL), and Brian Babin (TX).
The legislation was also introduced in the Senate by Senators Marco Rubio (FL) and Marsha Blackburn (TN).
Full text of the legislation can be found here.
A one pager on the bill can be found here. ### |