Two dozen Republican state financial officers have urged the U.S. Securities and Exchange Commission (SEC) to block Chinese companies—and others based in adversarial nations—from qualifying for Foreign Private Issuer (FPI) status on U.S. stock exchanges. The move aims to protect American investors and national security from the growing risks associated with opaque Chinese firms.
In a letter to SEC Chairman Paul Atkins, obtained by Breitbart News, 24 Republican signers argue that FPI rules, which ease regulatory burdens for foreign companies, are being exploited by entities tied to the Chinese Communist Party (CCP). These companies often incorporate in places like the Cayman Islands while operating out of China, bypassing critical financial transparency and auditing standards required of American companies.
“The state financial officers who penned this letter are standing up for American investors and the national security interests of our country,” said O.J. Oleka, CEO of the State Financial Officers Foundation. “It makes no sense to grant relaxed status to issuers based in countries that are our adversaries, like China.”
Utah Treasurer Marlo Oaks called the issue urgent: “Adversaries of America should not be allowed to exploit our markets. The SEC must act decisively to protect American citizens.”
The letter also calls for requiring foreign issuers on U.S. exchanges to fully disclose all material risks connected to their host country’s status as a Designated Foreign Adversary (DFA). The signers warn that failure to act would mean American capital continues fueling China’s military-civil fusion strategy and economic aggression.
The treasurers emphasize the need for stricter oversight, not leniency, when it comes to foreign firms from hostile regimes. “The last thing we should do is make it easier for the CCP to wage its war on us,” said Oleka.
