Washington, D.C. – Congressman Andy Barr has introduced H.R. 7924, the Transparency in Chinese Government Investment Act (TCGIA) of 2020. As of September 2019, 172 Chinese firms were listed on major U.S. exchanges, with a total market capitalization of more than $1 trillion. This legislation requires companies listing on U.S. exchanges to be transparent about any connection to or financial support by the Chinese Communist Party (CCP). Financial support includes subsidies, grants, loans, loan guarantees, tax breaks, tax incentives or any preferential treatment related to Chinese government procurement policies.
The TCGIA also stipulates that companies must identify any of their officers or directors who hold or formerly held positions with the CCP, Chinese government or other Chinese affiliations specified in the TCGIA. Lastly, companies must disclose any association with Chinese strategic initiatives such as “Made in China 2025,” or the “New Generation Artificial Intelligence Development plan,” in addition to other initiatives outlined in the TCGIA.
“This legislation would provide unprecedented transparency for American investors with respect to CCP investments in publicly traded companies,” said Congressman Barr. “CCP investment in American companies frequently leads to CCP manipulation of American companies and investors — whether it be the forced transfer of technology or the outright theft of American intellectual property. These are just two examples of many tactics used by the CCP that hijack American innovation, devalue American capital markets and most importantly threaten the investments of millions of American citizens.
“Additionally, the TCGIA exposes Chinese companies raising capital in American markets that are part of broader CCP strategic initiatives that undermine American national security and further some of the CCP’s most dangerous activities,” Barr continued. “I am urging Congress to act now to protect the integrity of our financial markets and our national security.”
“For years the Chinese Communist Party has abused free market principles to advance their goals for economic and technological dominance to the detriment of U.S. businesses and consumers,” said Congressman Michael McCaul (R-TX), who serves as the Ranking Member of the House Foreign Affairs Committee. “This bill gives U.S. investors greater transparency into how publicly-listed companies are benefiting from and supporting CCP practices that hurt the U.S. economy. I applaud Representative Barr for his leadership on this critical legislation as well as his tireless work on the China Task Force to hold the CCP accountable.”
Congressman Barr has been heavily involved in crafting legislation to counter CCP aggression and hold China accountable in the wake of the COVID-19 pandemic that originated in Wuhan, China. Barr was appointed to the China Task Force in May by House Minority Leader Kevin McCarthy (CA-23). Barr is currently Co-Chairing the Task Force subgroups on Economics and Energy as well as on Competitiveness. The Task Force is expected to issue its full recommendations in October of 2020.