The heat is on for newly confirmed SEC chairman Paul Atkins to crack down on Chinese companies

msn.com/NY Post ^ | Charlie Gasparino

[RoosterRedux]

Paul Atkins, President Trump’s nominee as the new chairman of the Securities and Exchange Commission, faced a key question [...]

Would the long-time securities lawyer and regulator investigate Chinese companies for what one senator believes are wanton and blatant violations of US disclosure laws that have gone unchecked for years?

...

The crackdown would be significant, probably one of the biggest the SEC has undertaken in its history. Nearly 300 Chinese companies, representing more than $1 trillion in market value, trade on US markets, namely the New York Stock Exchange and the Nasdaq Composite.

Many or maybe all of them, depending on whom you speak with, could be delisted.

The controversy over Chinese companies with public shares trading here has been brewing for years. Critics believe giving China access to our markets and public capital has fueled its quest for military and economic dominance. In 2020 during Trump’s first term, he signed into law provisions that give regulators the ability to delist China Inc. for ­violations of disclosure rules.

Among the concerns of lawmakers are that Chinese companies fail to properly account for Chinese Communist Party influence and ownership of their enterprises, and that they use slave labor of dissidents as part of their normal business operations. American investors in China Inc. will have little recourse if they are defrauded by a rogue ­nation.

...

These moves will put both major US exchanges in a tight spot, of course. The NYSE and the Nasdaq usually delist companies piecemeal when they fail to meet financial listing requirements or are indicted for fraud. Here they would be chopping out of their balance sheets major tech firms and retailers, such as Chinese online retailer Alibaba, that pay a lot of money to trade in the US and attract capital from our markets.

[RoosterRedux]

It looks like China may finally have to face the music on its U.S.-listed companies.

If the SEC under Paul Atkins follows through, we could see a wave of delistings for firms that flout disclosure laws, conceal CCP control, or benefit from slave labor. That would be a financial gut punch for American investors—especially those in index funds loaded with Chinese stocks.

But the goal isn’t short-term portfolio protection—it’s about cutting off access to U.S. capital for companies tied to a hostile regime and abusive practices. Wall Street may howl, but this is long-overdue financial decoupling. Transparency or exit—that’s the new standard.

The problem? China can’t be transparent—CCP control is baked into every major firm. Jack Ma warned about this in Alibaba’s prospectus, citing the “risks of doing business in China,” including state interference. Delisting isn’t punishment—it’s just acknowledging reality. You can’t demand transparency from a system built on secrecy and control.

Thanks to Democrats like Joe Biden, Gary Gensler, and others—and the willful blindness of U.S. stock exchanges—the CCP has built its industrial base with American capital. That’s the very same industrial base that steals our IP, knocks off our industrial, commercial, and technological innovation, exploits forced labor, and undercuts American products on the global market.

[FLT-bird]

This is a really informative “American Thought Leaders” Epoch Times program interview with Roger Robinson formerly director of economic affairs at the Reagan national security council. In it he goes over in detail how the normal SEC rules were waived for Chinese companies to get them listed in the US, how index funds incorporate many banned Chinese companies including arms makers supplying the Chinese military, and how many American investors are unwittingly funding the arming and equipping of the Chinese military via their investments in these Chinese index funds.

Obviously, this must stop and Chinese companies need to start being subject to the same listing requirements as all other companies - that includes all the various accounting and governance rules they do not currently have to follow.

This interview is an hour and a half but its very informative. I watched it a couple days ago.

https://www.youtube.com/watch?v=iN_yID45e98&t=1467s

[RoosterRedux]

I just made the following comment on another China thread I posted a few hours ago:

I don’t see any way out of this for China except the collapse of their economy, the Xi government—and maybe even a reformation of the CCP itself.

This isn’t just a case of China “taking advantage” of the West. Their entire economy has been built on theft and dishonesty. Cut off the IP theft, forced tech transfers, and access to U.S. capital—and their model collapses.

That’s why Xi hasn’t responded positively to Trump’s tariffs. He knows Trump isn’t bargaining for fairer trade terms—he’s targeting the foundation of China’s economic power. Xi’s system doesn’t survive under fair trade rules. It only thrives on exploitation—and that’s what Trump is ending.

The real question now is: how will Xi and the CCP respond? Is there any reformist force left within the Party that could shift China back toward Deng’s path of market-oriented pragmatism? Or has Xi’s centralization made that impossible?

[FLT-bird]

Agreed. Without the US market alone....without a massive trade surplus AND investment capital to fuel their companies AND the theft of technology, that will be a huge blow to China. If it ever comes to US allies doing the same (EU, Japan, Australia, Canada, UK, etc) they are totally screwed. That represents 60% of their exports and the loss of even more capital and technology. You just can't replace markets like the US, EU and Japan. There simply aren't other markets anywhere nearly big enough to take up the slack.

My concern is that with the Chinese economy now faltering, Xi will try to play the only card they have left to maintain their political support at home - ultranationalism in the form of an invasion of Taiwan. Y'know it wouldn't be a bad thing at all if Taiwan were to acquire a few dozen tactical nukes.....

Now that we are finally addressing the threat from China, I think the danger will mostly be in the short term. Between their crappy demographics/rapidly aging population, their enormous toxic asset bubble as a result of the collapse of the domestic real estate market, and capital/production capacity declining in the country now that the US is decoupling, the future does not look great for them. They will grow weaker over time rather than stronger.

[ScottHammett]

The real question now is: how will Xi and the CCP respond?

How did Japan respond to economic pressure before Pearl Harbor? The US appears to be more aware of CCP tactics than it was of Hirohito’s. A color revolution, while highly unlikely in the PRC, would be my choice.

[grumpygresh]

“only card they have left to maintain their political support at home - ultranationalism in the form of an invasion of Taiwan.“

You can’t hide an invasion force. It’s not like D-Day or Inchon anymore. An invasion of Taiwan would make China into an international pariah. We’ve seen what drones can do in Ukraine against massed armor. An invasion force on the sea is a massive target. Even in 1944, if Nazi Germany had operational use of the V-2, the D-Day landings would have been a disaster.
If that happened, China would at minimum suffer a blockade and trade would come to a hault, no ship could be insured that gets close to China. Tankers would be turned back or sunk and China’s oil supply which is 70% by sea would grind to a halt.

If China wanted to do this, they missed their chance under Biden.

[RoosterRedux]

I’ll bet Xi is looking over his shoulder a lot lately. And I’ll bet there’s a yuuge amount of chatter within the various factions of the CCP.

[PIF]

Or has Xi’s centralization made that impossible?

—
Coupled with many many high ranking clan members disappearances ...

[zeestephen]

Re: "Is there any reformist force left within the Party that could shift China back toward Deng's path of market-oriented pragmatism?"

About ten days ago, I think on Saturday April 5, Mark Levin, on Fox News, had a gentleman guest speaking about the instability of the Chinese government.

The guest, who I did not recognize, stated that Xi Jinping was being openly challenged by the Chinese military.

Xi apparently purged two military men. The military let the purge stand, but directly warned Xi that he could never purge any military personnel again without the permission of the military leadership.

Also, it is now common knowledge that Xi has enriched his entire family, including cousins and nieces and nephews.

I only saw the last couple minutes of the interview. I searched for a Mark Levin link on the Web, but everything is behind a pay wall.

[Lake Living]

Yeah, I watched that. Wow! Very informative. Also, Maria Bartiromo’s interview with the Shark Tank guy. She didn’t let him skate on his comment about not knowing why Wall Street continued to allow such corruption.

[RoosterRedux]

Is this the Levin interview (with Gordon Chang):

China expert warns regime could be on the ‘cliff of disintegration’

[zeestephen]

Thanks, Rooster.

Your China clip is definitely from the partial Levin interview I saw.

I was hoping to find the entire interview, but Fox News has become very protective about giving away content.