US Lawmakers Urge SEC to Delist Alibaba, Other Chinese Companies Over National Security Concerns

U.S. lawmakers are ramping up pressure on the Securities and Exchange Commission (SEC), calling for the delisting of Chinese companies such as Alibaba, Baidu, and JD.com. They argue that these companies have ties to the Chinese military, posing serious risks to American investors and national security.

Calls for SEC Action

Chairman of the House Select Committee on China, John Moolenaar, and Chairman of the Senate Special Committee on Aging, Rick Scott—both Republicans—have sent a letter to SEC Chair Paul Atkins urging action against 25 Chinese companies currently listed on U.S. stock exchanges. These include major names like Alibaba, Baidu, JD.com, and Weibo.

Threats from ties to the Chinese Military

According to the lawmakers, these Chinese firms “benefit from U.S. capital while advancing the Chinese Communist Party’s strategic goals, supporting military modernization, and engaging in severe human rights abuses.” They warn that such connections pose “unacceptable risks” to American investors.

Concerns over Lack of Transparency

The letter emphasized that the Chinese government’s influence over domestic companies is often hidden from U.S. investors, making disclosure requirements insufficient to mitigate risks. Some companies are said to be “integrated into China’s military and surveillance apparatus” despite appearing to be ordinary commercial enterprises.

Named Companies

Besides Alibaba, Baidu, and JD.com, the letter also mentions companies like Pony AI (autonomous driving tech), Hesai (lidar sensors), Tencent Music, and Daqo New Energy (polysilicon producer accused of forced labor in Xinjiang). According to the lawmakers, these firms are accessing U.S. capital while serving “a genocidal dictatorship and our top geostrategic rival.”

A New Front in U.S.-China Tensions

This move is the latest in Washington’s efforts to prevent China from leveraging U.S. technology and finance to boost its military capabilities. It comes amid escalating trade tensions and just a day after the CIA released a Mandarin-language video aimed at recruiting domestic Chinese spies.

Beijing and Company Responses

The Chinese Embassy in Washington criticized the U.S. for “abusing the concept of national security” to suppress Chinese businesses. Spokesperson Liu Pengyu emphasized that Beijing opposes “weaponizing trade and tech issues.” Meanwhile, the SEC stated that Chair Paul Atkins would respond directly to Congress.

CONCLUSION

As tensions between Washington and Beijing intensify, the battle is extending beyond trade into financial markets. The push to delist Chinese firms reflects the U.S. government’s resolve to protect national interests and investor security in an increasingly complex geopolitical landscape.

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