Posted on 06/13/2020 7:18:08 AM PDT by SeekAndFind
An attempt by the Senate to prevent China from using American investments in Chinese firms against the United States might prove to be self-defeating in the long run.
Already an epicenter of anti-Chinese communist sentiment, the Senate on May 20 overwhelmingly approved the "Holding Foreign Companies Accountable Act (S. 945)," a bill that might lead to Chinese firms being barred from listing on U.S. stock exchanges.
The bill will require foreign companies doing business in the U.S. to certify they’re not controlled by their governments. They will also have to submit to audits by U.S. regulators for three consecutive years.
If not, these firms will be banned from trading on Wall Street. Stricter oversight by U.S. will affect the future listing plans of major private Chinese corporations.
Uneasy American legislators in both the House and the Senate have voiced loud objections to the billions of dollars being poured into China’s largest corporations by American corporations and entities for decades. Congressional sources said most of the American money flowing untrammeled into China comes from the U.S. pension funds and college endowments desirous of massive investment returns.
The concern among these lawmakers is China is using American money to expand its own tech industry and defeat the U.S. in the race for leadership in artificial intelligence and autonomous driving capabilities, among many other advanced technologies.
S. 945 was introduced by Sen. John Kennedy (R-La) and Sen. Chris Hollen (D-Md) and was approved by unanimous consent. A companion bill was later introduced in the House, indicating broad and bipartisan support for putting the screws on China.
“Publicly listed companies should all be held to the same standards, and this bill makes common sense changes to level the playing field and give investors the transparency they need to make informed decisions,” said Sen. Hollen.
(Excerpt) Read more at ibtimes.com ...
Markets inherently involve risk. I say we hit em while we still got the muscle.
>>> The bill will require foreign companies doing business in the U.S. to certify they’re not controlled by their governments.
Isn’t this like asking a bear to certify that it does NOT Crap in the woods?
“Publicly listed companies should all be held to the same standards,...”
In a nutshell. There can be be NO logical argument against enforcing this...none.
This is a far far far left wing rag .
Its a lefty junk rag no one reads .
“”I say we hit em while we still got the muscle.””
Frankie Five Angels
This is a diversion by the globalists in the GOP Senate. Instead of bringing our supply chain back to America , they ‘re doing a stunt of delisting Chinese companies on the stock exchange. Investing in those companies will continue on other exchanges.
Unfortunately many GOP sheeple will buy this stunt and nothing will change in terms of jobs and manufacturing. Well still be shipping jobs to China and other cheap labor countries. The chamber of commerce and big donors still rule the GOP
Good insight. Hopefully Trump will have more flexibility after the election!
Good news... But we need to nationalize Foreign owned Food companies (Unilever, Nestle’s, Smithfield and Swift among others), too...
Quite frankly, I am sick and tired of EXPERTS!
I have no problem with the Chinese stocks on the US Stock Exchange. But it should be a full display of purchases across the board.
Currently the only way to determine stock purchases is look at 13F filings with the SEC. They tell you what positions are held by large institutions at the end of each quarter. The institutions have 45 days from quarter-end to file. So you’ll be seeing data that’s as much as a month and a half old, but it will display financial commitment to the stocks they purchase. And the companies doing purchasing should not have a problem with disclosure as it then leaves it up to the consumer if they wish to partake of the company’s service or product based upon their alining of foreign or local companies the consumer does not wish to support.
You roll the dice, you pay the price. Full disclosure.
rwood
Controlled by cheap-labor big donors, the GOP leadership refuses to bring manufacturing back to the US.
That’s an unpopular position with everybody but the big donors, so the GOP leadership has to create a diversion. To divert people from focusing on supply chains and the offshoring of manufacturing, they create a meaningless distraction- they get us debating over whether Chinese companies should be listed on the US stock exchanges.
Stupid sheeple in the GOP base think their GOP leaders are “sticking it” to the Chinese by delisting companies on the stock exchange, while nothing changes where it really matters - in the supply chains. We continue sending factories to China and the cheap labor Third World, but our GOP leaders get applauded for the meaningless stunt of stock-exchange delisting
As always, the cheap labor big donors win - and the stupid sheeple in the GOP get fooled into thinking their GOP leaders stood up for America while they were really just continuing the sell-out
Experts say a lot of things and they’re frequently wrong.
RE: But we need to nationalize Foreign owned Food companies (Unilever, Nestle’s, Smithfield and Swift among others), too...
Can you explain what you have in mind when you say “nationalize”?
“....they were really just continuing the sell-out...”
You’re right there. But to take it past the politicians, let the decision be to the people. Give us our choice though the free market which is what it was designed for to begin with. If I choose not to buy Chinese goods, and enough people do the same, the old law of supply and demand takes over with demand being the answer to China. We have had the power to do this with any country in the world for many years.
Trump has done his part however. According to NPR, hardly a fan of his, he has done a lot of damage to their economy by tossing trade restrictions and tariffs on them which has created a real problem with their economy as their exports to the US, basically shoes, was cut 12% in the January through March time frame, along with cutting them almost $38B and scraping their world wide exporting to the lowest it’s been in 17 years. Sooner or later they will have to play by the rules or starve to death. Hope it’s sooner.
rwood
Trump has done his part however. “
No he hasn’t. We’re still sourcing our medical supplies - along with most other manufacturing - from China.
He had a two year window when GOP ran congress. Instead of pushing for legal changes to bring US manufacturing back to the US, Trump let Ryan and McConnell frame his agenda. And they’re globalists. They’re the problem not the solution
Stock Market News: US Senate Wants To Delist Chinese Companies, Expert Warns Of ‘Backfire’
the result of eunuchs making decisions. Is this another self proclaimed “expert.”
It is about time that Chinese companies are required to abide by the same regulations the everyone else already does when listing on American stock exchanges. Like having annual audits made public and real, verifiable earnings reports.
He hasn’t been sitting on his keyster. It has taken a little time but during the January through March time frame this year, Trump’s tariffs and trade restrictions have lowered China’s exports to us by 12% and cost their retainers a little short of $38B in 3 months. And as other countries have fallen in line China is operating at their lowest export capacity in 17 years. And as you can see by the supplied graph, our lowest import numbers from China since Trump took office in 2016.
Starting in early April of this year, we were importing roughly $19.81B from China, with it going up to $31.07B by the end of April. And the product we import from them more than anything is shoes.
https://www.statista.com/statistics/277428/value-of-us-imports-from-china/
Where we have China on the ropes is food. China needs to feed 21% of the world population on only 7% of global farmland. What needs to be added is that a lot of this ‘arable land’ is often still hilly, water-starved, or salinated. Additionally, the percentage of arable land also continues to shrink due to urbanization, erosion, pollution, and other factors. By some accounts China has lost up to 20% of its arable land since 1949, yet their population is huge and not shrinking enough to make a small dent in the problem. For them to import enough food from their land they are farming, or other sources from straight trade is like trying to paint the side of a moving freight train that never stops. Let’s just say they have their problems, and by my observation, Trump is being one of them.
rwood
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