Jefferson City News

House Financial Service Subcommittee on National Security, Illicit Finance, and International Financial Institutions Chairman Blaine Luetkemeyer (MO-03) and Select Committee on the Chinese Communist Party Chairman John Moolenaar (MI-02) introduced The PRC Risk Transparency Act today. The legislation aims to enhance transparency, manage risks, and ensure accountability for entities with significant exposure to China.

The PRC Risk Transparency Act amends section 13 of the Securities Exchange Act of 1934 (15 U.S.C. 78m) by adding a new subsection focused on "China Exposure Disclosures." This addition seeks to improve transparency and reporting requirements for certain securities holders with substantial exposure to China. Covered issuers must file an annual report disclosing the percentage of total revenue, profits, capital investment, and supply chain involvement in China, as well as perform security analysis related to their exposures. The bill includes a market access loss scenario describing a situation where U.S.-China trade falls by 80% due to Chinese military aggression, leading to mutual sanctions and asset seizures. Additionally, the Board of Directors must certify the accuracy and thoroughness of the disclosures. The SEC is required to issue rules within 60 days of enactment, including protections for proprietary information and safe harbor provisions for diligent disclosures.

“The geopolitical tensions between the United States and the People's Republic of China (PRC) pose significant risks to American investors and our financial markets. The PRC Risk Transparency Act is critical in arming our investors with the necessary material information to make informed decisions and protect their financial interests,” said Chairman Luetkemeyer. “This is a proactive step in fortifying our economy against the risks posed by the PRC and ensures the long-term stability of our financial markets as we navigate increased Chinese aggression towards the United States and our allies.”

"Our Select Committee's investigations have shown that Wall Street and American companies are deeply entangled with China, so a military confrontation with the PRC would be devastating to those firms – and to American investors," said Chairman Moolenaar. “All Americans have a right to understand that material risk. I am proud to support the PRC Risk Transparency Act to give investors and lawmakers the information they need to understand the systemic risks posed by investing capital in our foremost adversary. Thank you to Congressman Luetkemeyer for his important leadership on this issue.”

CONTACT US: I encourage you to visit my official website or call my offices in Jefferson City (573-635-7232) or Cottleville (636-327-7055) with your questions and concerns. If you want even greater access to what I am working on, please visit my YouTube site, Facebook page, and keep up-to-date with Twitter and Instagram.

###