Duval Times

Today, Senators Rick Scott and Marco Rubio have introduced the Trusted Foreign Auditing Act, a bill aimed at protecting U.S. investors and capital by requiring Chinese companies to use independent auditors not controlled by the Communist Party. This legislation is a response to the failure of Chinese companies listed on U.S. stock exchanges to comply with U.S. securities law.

Senator Rick Scott emphasized the need for transparency and accountability, stating, "Companies controlled by the CCP operate in complete secrecy with no transparency into their books or business dealings." He further added, "The Trusted Foreign Auditing Act is a good step in the right direction to ensure that when Americans invest their dollars on domestic financial exchanges, there will be accurate information regarding their investments."

Senator Marco Rubio, the primary sponsor of the bill, highlighted the importance of shedding light on Chinese companies' operations. He expressed concern over the lack of transparency and stated, "We have allowed Chinese companies to become a black hole, swallowing hundreds of millions of investor dollars with little to no transparency about their operations."

U.S. Representative Elise Stefanik has introduced companion legislation in the House to reinforce the objectives of the bill. Congresswoman Stefanik emphasized the need to protect U.S. investors, businesses, and interests from Communist China's hostile behaviors. She stated, "This bill will require all companies that are listed on the U.S. stock exchange to retain independent auditors to ensure they are fully compliant with U.S. law."

The Trusted Foreign Auditing Act has garnered support from other lawmakers as well. Senator Bill Hagerty, an original cosponsor, emphasized the need for transparency from Chinese companies and stated, "For too long, Chinese companies have been allowed to access our capital markets without complying with our nation's auditing requirements."

The legislation has also received endorsements from the Coalition for Prosperous America and Heritage Action, highlighting the broad support for increased transparency and accountability in Chinese financial firms operating in the U.S.

This bill comes as a response to the failure of Chinese companies to comply with U.S. securities law, with many using auditors with ties to the Chinese Communist Party in an attempt to sidestep the law. The Public Company Accounting Oversight Board found that these auditors were not meeting American auditing standards.

The Trusted Foreign Auditing Act aims to rectify this situation by mandating the use of independent auditors not controlled by the Communist Party. Failure to comply with the legislation would result in Chinese companies being delisted from U.S. stock exchanges.

With this legislation, Senators Rick Scott and Marco Rubio, along with their colleagues, are taking a strong stance against the lack of transparency and accountability exhibited by Chinese companies. They seek to protect American investors and ensure that accurate information is available regarding their investments.

This bill represents an important step towards forcing transparency and accountability from Chinese financial firms operating in the U.S. By requiring them to use auditors without Communist ties, the Trusted Foreign Auditing Act aims to protect U.S. investors and hold Chinese companies accountable for their actions.

To find out more, go to this link: https://www.rickscott.senate.gov/2023/12/sens-rick-scott-and-marco-rubio-introduce-bill-mandating-chinese-financial-firms-use-auditors-without-communist-ties