Duval Times

On May 31, 2024, Senator Rick Scott sent a letter to Gary Gensler, Chair of the Securities and Exchange Commission (SEC), expressing concerns about the Chinese Communist Party (CCP)-linked electric vehicle company Zeekr trading on the New York Stock Exchange. Zeekr is a subsidiary of Zhejiang Geely Holding Group, a Chinese conglomerate with close ties to the CCP. In his letter, Senator Scott requested that Chair Gensler take measures to protect and inform U.S. investors about Chinese companies like Zeekr.

Senator Scott wrote: "Zeekr is a subsidiary of Zhejiang Geely Holding Group, a Chinese conglomerate with close ties to the Chinese Communist Party (CCP). As you know, the CCP's ongoing authoritarian control over China's economy and companies raises significant risks for U.S. investors."

He further raised concerns regarding supply chain and human rights abuses linked to Zeekr. Citing a report from the U.S. Senate Finance Committee, he highlighted alarming ties between auto companies and forced labor violations.

Senator Scott also referenced his introduction of two legislative measures aimed at increasing disclosure requirements for Chinese-based companies seeking access to U.S. exchanges through Initial Public Offerings (IPOs). The Securing American Financial Exchanges (SAFE) Act would mandate specific disclosures by the SEC for such companies, while the Transaction and Sourcing Knowledge (TASK) Act would require detailed reporting on supply chains potentially involving forced labor.

In his letter, Senator Scott posed several questions to Chair Gensler:

1. How did the SEC ensure that Zeekr's supply chains are free from forced labor and human rights abuses when approving this IPO?

2. How did the SEC determine that Zeekr does not receive financial support from the Government of China?

3. How did the SEC ascertain that Zeekr has no committees or employees affiliated with the CCP?

4. How did the SEC verify that Zeekr has not engaged in transactions with entities listed on various U.S. government sanction lists?

5. What assurances did Zeekr provide regarding legal recourse and protections for U.S. investors?

Senator Scott concluded by emphasizing: "We must ensure our financial exchanges are not promoting US capital investment in companies with ties to countries that want to destroy America."