Duval Times

In an effort to address the non-compliance of Chinese companies listed on U.S. stock exchanges with U.S. securities law, Senator Marco Rubio and Representative Elise Stefanik have introduced the Trusted Foreign Auditing Act. This legislation aims to protect U.S. investors and capital by mandating that Chinese companies use independent auditors without ties to the Communist Party.

Senator Marco Rubio, who introduced the bill, expressed his concerns about the lack of transparency surrounding Chinese companies operating in the U.S. He 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. No more. This legislation will shed much-needed light on an economy that threatens both our prosperity and our security. If these Chinese companies are unwilling to comply with our laws, they will be kicked off our exchanges."

Joining Senator Rubio, Representative Elise Stefanik emphasized the importance of protecting U.S. investors and interests from the hostile behaviors of Communist China. 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. We cannot allow Communist China to completely disregard the rules required to access American capital. This legislation will put guardrails in place to protect American investors and hold Chinese companies accountable."

Senators Rick Scott and Bill Hagerty are original cosponsors of the bill. Senator Scott highlighted the need for transparency, stating, "Companies controlled by the CCP operate in complete secrecy with no transparency into their books or business dealings. 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. I am proud to stand with my colleagues to introduce this important legislation that will force accountability and protect American investors."

Senator Hagerty echoed the sentiment, adding, "For too long, Chinese companies have been allowed to access our capital markets without complying with our nation's auditing requirements. I'm pleased to join Senator Rubio on this legislation that will force transparency from these companies."

The Trusted Foreign Auditing Act has garnered endorsements from the Coalition for Prosperous America and Heritage Action, further highlighting its importance in ensuring accountability and protecting American investors.

This legislation comes after Senator Rubio criticized the initial auditing deal between the Biden Administration and China. In a letter to U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler, Senator Rubio sought answers on how American investors would be protected when conducting business with the People's Republic of China.

With the introduction of the Trusted Foreign Auditing Act, Senator Rubio, Representative Stefanik, and their colleagues are taking a proactive approach to address the lack of compliance by Chinese companies listed on U.S. stock exchanges. By mandating the use of independent auditors without Communist ties, this legislation aims to bring transparency and accountability to Chinese financial firms and protect the interests of American investors.

To learn more, click on this link: https://www.rubio.senate.gov/rubio-stefanik-colleagues-introduce-bill-mandating-chinese-financial-firms-use-auditors-without-communist-ties/