Moolenaar, Scott Demand Answers from SEC and PCAOB on Chinese Companies’ Access to U.S. Markets
WASHINGTON, D.C. — Chairman John Moolenaar (R-MI) of the House Select Committee on China and Chairman Rick Scott (R-FL) of the Senate Special Committee on Aging have sent letters to the U.S. Securities and Exchange Commission (SEC) and the Public Company Accounting Oversight Board (PCAOB), requesting an urgent briefing about risks posed to American investors by Chinese companies listed on U.S. stock exchanges.
At issue is a 2022 agreement between Chinese regulators and the PCAOB regarding audit inspections of China-based companies. The lawmakers warn that despite this agreement, significant gaps remain in transparency and regulatory oversight.
“The agreement between Chinese securities regulators and the PCAOB allows the CCP government to withhold information from U.S. investors, which concerns us,” they wrote. “This arrangement gives us significant concern that American investors are not adequately protected.”
They further note that Chinese laws conscript companies in service of the state. “CCP-linked companies cannot operate independently from the state,” the lawmakers warned, pointing to national security laws and restrictions that classify critical business information as state secrets.
Under the Holding Foreign Companies Accountable Act (HFCAA), foreign firms whose audits cannot be fully inspected by the PCAOB are supposed to be delisted after two consecutive years. However, Moolenaar and Scott emphasize that this deal leaves American investors exposed.
The lawmakers’ request follows an April 2025 joint hearing examining how the CCP “exploits American retirees and undermines national security.”
Moolenaar and Scott are seeking clarity on how U.S. regulators plan to protect investors and ensure transparency from Chinese firms listed on American exchanges.
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