Sec. 30133. Review of Chinese companies on United States capital markets
544 words·~2 min read·
/bill/117/hr/4521/pcs/section-30133·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Not later than 180 days after the date of the enactment of this Act, the Secretary of the Treasury, in consultation with the Secretary of State and in consultation with and with support from the Securities and Exchange Commission, shall submit a report to the Committees on Financial Services, Foreign Affairs, and the Permanent Select Committee on Intelligence of the House of Representatives and the Committees on Banking, Housing, and Urban Affairs, Foreign Relations, and the Select Committee on Intelligence of the Senate that describes the capital raising activities in the United States of companies incorporated in the PRC and companies incorporated outside PRC that predominantly invest in companies incorporated in the PRC.
The report should discuss risks to the United States national security posed by the capital raising activities of these companies. The report shall— identify companies that— are incorporated in the PRC that issue registered securities or are listed or traded on one or several stock exchanges within the United States, including through the use of American depository receipts, variable interest entity structures, over-the-counter market, or A Shares , or are otherwise added to indexes and exchange-traded funds out of mainland exchanges in the PRC; are incorporated in the PRC that issue unregistered securities within the United States; are incorporated outside of PRC but predominantly invest in companies incorporated within the PRC, including companies that raise capital through the various exemptions available under the securities laws of the United States; or based on the factors for consideration described in paragraph (3), have knowingly and materially contributed to— activities that undermine United States national security; serious abuses of internationally recognized human rights; or a substantially increased financial risk exposure for United States-based investors; describe the activities of the companies identified pursuant to subparagraph (A), and their implications for the United States; and develop policy recommendations for the United States Government and State governments to address the risks posed by companies identified pursuant to subparagraph (A).
In completing the report under paragraph (1), the Secretary shall consider whether a company identified pursuant to paragraph (2)(A)— has materially contributed to the development or manufacture, or sold or facilitated procurement by the People’s Liberation Army, of lethal military equipment or component parts of such equipment; has contributed to the construction and militarization of features in the South China Sea; has been sanctioned by the United States or has been determined to have conducted business with sanctioned entities; has engaged in an act or a series of acts of intellectual property theft; has engaged in corporate or economic espionage; has contributed to the proliferation of nuclear or missile technology in violation of United Nations Security Council resolutions or United States sanctions; has contributed to the repression of religious and ethnic minorities within the PRC, including in the Xinjiang Uyghur Autonomous Region or the Tibet Autonomous Region; has contributed to the development of technologies that enable censorship directed or directly supported by the Government of the PRC; and has contributed to other activities or behavior determined to be relevant by the President.
The report required under this section shall be submitted in unclassified form. The unclassified portion of the report required under this section shall be made accessible to the public online through relevant United States Government websites.