North Indy News

Washington, D.C. – Today, co-chairs of the CPA caucus, Congresswoman Victoria Spartz (R-IN-05) and Congressman Brad Sherman (D-CA-32), introduced four legislative measures aimed at addressing the risks posed by China to the U.S. economy and financial markets.

Congresswoman Spartz highlighted the importance of protecting American investors, stating, "As a former Big 4 auditor of multinational publicly traded companies, I understand the risks to financial markets and American investors posed by the lack of transparency and proper auditing of Chinese operations." She emphasized the need for transparency and the elimination of incentives that could jeopardize the interests of the American people.

Congressman Sherman pointed out the disparities in tax incentives between the U.S. and China, stating, "We provide the capital gains tax subsidy to encourage Americans to invest and build our economy. It makes no sense to forgo U.S. tax dollars to encourage Americans to invest in China’s economy." He also highlighted the importance of requiring American companies to disclose their China risk and the steps taken to mitigate it.

The legislative package includes four bills, each addressing a different aspect of the risks posed by China to the U.S. capital markets. These bills aim to end tax breaks for Chinese stocks, restrict sanctioned Chinese companies' access to U.S. capital markets, increase transparency on risks to American corporations, and reduce exposure to these risks for retail investors and Americans saving for retirement.

The bills in the package include the No Capital Gains Allowance for American Adversaries Act, the China Risk Reporting Act, the PRC Military and Human Rights Capital Markets Sanctions Act, and the No China in Index Funds Act. Each bill is designed to mitigate specific threats and enhance the security of the U.S. economy and financial markets.

In conclusion, the introduction of these bills reflects the efforts of Congresswoman Spartz and Congressman Sherman to safeguard the American economy from the strategic, commercial, and national security threats posed by China.