Holding Foreign Companies Accountable Act

Floor Speech

BREAK IN TRANSCRIPT

Mr. BARR. Mr. Speaker, I rise in strong support of S. 945. The United States has the most robust and advanced capital markets in the world. They provide access to capital for some of the most innovative businesses, and create an avenue for investors of all levels to save for retirement and plan for their futures.

It follows that companies from around the globe flock to the U.S. capital markets to fund their businesses; and the U.S. is happy to be the destination for these firms. However, to play in our markets, companies need to play by our rules; and Chinese firms listed on American exchanges are the worst and most frequent offenders. Gone are the days when we can sit idly by and let Chinese firms, many with strong ties to the Chinese Communist Party, participate in our markets at the expense of protection for everyday investors.

Most publicly traded firms are audited by public accounting firms, which, in turn, are overseen by the PCAOB. This gives investors confidence that the books are accurate. China, however, refuses to let the PCAOB review its auditors.

The result? At best, investors lack confidence in the validity and reliability of a company's financial data. Even worse, thousands of investors are downright defrauded. The worst case scenario--American savers are unwittingly funding efforts by Chinese SOEs to usurp America's global supremacy and compromise U.S. national security.

I was proud to serve on the House China Task Force, where we closely examined, among other things, China's participation in U.S. capital markets. Earlier this year, we published a report with over 130 recommendations--most of which are bipartisan. Passage of the House companion to S. 945, sponsored by Mr. Sherman, was among the recommendations.

Also among the recommendations was passage of my bill, the Transparency in Chinese Government Investment Act, which would direct the SEC to investigate whether disclosure of a business's ties to the CCP or other malign Chinese initiatives is material for investors; and, if so, require companies to report.

We can no longer allow China to take advantage of our rules, defraud our investors, and challenge the spirit of free enterprise. I urge support of S. 945.

BREAK IN TRANSCRIPT

Source