US lawmakers want the SEC to delist Chinese companies like Alibaba and Tencent

Two senior Republican U.S. lawmakers, John Moolenaar (House China Committee chair) and Senator Rick Scott (Senate Committee on Aging chair), have urged the Securities and Exchange Commission (SEC) to delist 25 major Chinese companies from U.S. stock exchanges, including Alibaba, Baidu, JD.com, Tencent, and Weibo. They allege these companies have ties to the Chinese military and the Chinese Communist Party's strategic objectives, posing national security risks and unacceptable dangers to American investors.

The lawmakers argue that these firms benefit from American investor capital while advancing China's military modernization and human rights violations, citing China's military-civil fusion policy that compels private companies to cooperate with the People's Liberation Army. They contend that these companies are "actively integrated into the Chinese military and surveillance apparatus," with risks that cannot be mitigated by disclosures alone.

They have called on SEC Chair Paul Atkins to use the authority granted by the Holding Foreign Companies Accountable Act to suspend trading or compel delisting of these firms if they fail to meet U.S. auditing standards or investor protections. The SEC has not yet responded publicly to this request.

This move reflects growing bipartisan efforts in Washington to reduce Chinese access to U.S. capital amid escalating economic and geopolitical tensions between the two countries. China has criticized the push, accusing the U.S. of weaponizing national security concerns to suppress Chinese firms.

U.S. lawmakers want the SEC to delist Chinese companies like Alibaba and Tencent due to alleged military links and national security risks, leveraging existing regulatory tools to protect American investors and curb Chinese state influence through capital markets.

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