Moolenaar Legislation Aims To End Red China’s Sweetheart Access to Wall Street

In an interview yesterday, the Chairman of the House Select Committee on the Chinese Communist Party, Rep. John Moolenaar (R-MI) called for the deregistration from U.S. capital markets of Alibaba and other Chinese companies aiding and abetting our mortal enemy, the Chinese Communist Party and its People’s Liberation Army.

Appearing on “Securing America” – a program aired on Real America’s Voice that is hosted by Frank Gaffney, the Vice Chairman of the Committee on the Present Danger: China – Chairman Moolenaar made, among others, the following points:
 

• We don’t want to be in a situation where either with taxpayer dollars or with investor dollars that we’re funding our demise as a nation. When it comes to Chinese companies, we have to recognize that there’s really no such thing as a private sector company in China. By law, they are required to be subservient to the Chinese Communist Party and basically carry out any activity that the Chinese Communist Party requires them to do.
• So, in the case of Alibaba, we realized that our Pentagon has designated them as a Chinese military company. And what we’ve learned is through this process, because of their national security laws, China, wherever a Chinese company or a Chinese national is, throughout the world, is required to carry out the mission of the Chinese Communist Party. That means when customer data or different information on cloud services, different vulnerabilities and cybersecurity, if those exist and Alibaba is aware of those, they are required to hand that information over to the Chinese Communist Party. So, it creates a situation where you don’t want Alibaba in our infrastructure in any way.

 

• We have asked SEC Chairman Atkins to consider removing companies that are on the entity list for the Pentagon that are considered Chinese military companies not to be allowed on American exchanges. And my hope is that they will move in that direction.But right now we’re seeing the situation where American companies, American investors are investing in companies that are linked to the Chinese military and those technologies could be used against our men and women in the armed forces.
  
  Also to slave labor, when you look at recently the different IPO’s that have occurred, whether it was CATL with JP Morgan and Bank of America and then recently a mining company which was put on the exchange and IPO by an American company, Morgan Stanley. And there’s a proven track record of complicity in Shenzhen with slave labor, with human rights abuses in Xinjiang.
   
• And so we see these situations where American investor dollars unknowingly are either advancing the Chinese slave labor or cooperation with the Chinese military industrial complex. And that’s just wrong. But we need to make it illegal, and we need to [enact] legislation, as well as cooperation with the executive branch, to shut that down.
   
• We are working diligently to put legislation perhaps in the National Defense Authorization Act. That’s one potential vehicle where, and with outbound investment that would codify what the America First Investment Policy is from the Trump administration. And it’s important that we send a clear message and give guidelines to businesses. And then sanction those who are complicit in this activity and working with the CCP.
• And so it’s a work in progress in the legislative process. It’s always a negotiation between the House, the Senate, and the executive branch. But clearly we want to make sure we’re moving forward on the legislative agenda because, you know, President Trump is able to do a lot of things unilaterally through executive orders, but for it to last for future presidents, we want to make sure it’s codified in the law.
• When Xi Jinping said that critical minerals and rare earth elements were going to be cut off to the free world, that was a shot, a loaded gun going off for our economy and that of our allies. And so it’s a wakeup call for us to be self-sufficient, reduce our dependence on China.
  
  And I’m pleased the Trump administration is really moving forward on this agenda.
   
• [Frank Gaffney: Speaking of Paul Atkins, the Chairman of the Securities and Exchange Commission could, with a stroke of a pen, on 30 days’ notice, end the sweetheart deal that was engineered by Joe Biden when he was vice president back in 2013, giving privileged access of the Chinese to our markets, capital markets, sir. Should that be done as well?]
  
  Chairman Moolenaar concluded by saying, "We have made that request and they’re going through their process and my hope is they will continue to move forward and make progress. It’s a slower process than we’d like working in the government, but these are things that are very important and of great value to the American people."