This week, U.S. Sen. Rick Scott sent a letter to Jay Clayton, the chairman of the U.S. Securities and Exchange Commission, (SEC) urging the SEC to exclude Chinese-based companies trading publicly on U.S. stock exchanges from eligibility for SEC filing extensions due to impacts of the coronavirus.
“Since Communist China claims to have solved the virus in their country, these companies do not need, and should not be seeking, leniency from the U.S. government,” Scott’s office insisted.
Scott’s letter is below:
Dear Chairman Clayton,
I write regarding our shared priority to protect American investors and businesses, including from the threat of Communist China. We know that Communist China lied about the Coronavirus in an attempt to protect their image. They are lying about how many cases and deaths they have, what they knew and when they knew it, and their cover up cost American lives.
On March 25th, 2020, the U.S. Securities and Exchange Commission (SEC) made the announcement that it would permit U.S. publicly traded companies to apply for 45-day annual report filing delays if they have been impacted by the Coronavirus. This was a positive step to help provide relief for so many American businesses impacted by the virus.
From the beginning, Communist China has not been a friend or a partner in solving this crisis. They hid information from us, and now claim to have solved the Coronavirus in their country, albeit with little or no evidence actually provided. If Communist China has truly stopped the spread of the virus, then Chinese-based companies certainly do not need and should not want regulatory relief from the U.S. government, nor should we offer it to them.
Chinese-based companies already enjoy several leniencies and benefits not afforded to U.S. based companies operating in China. I’ve expressed my concern about the lack of compliance and limitations on oversight of U.S.-listed Chinese companies, which opens the door to adverse activities, including insider trading, accounting fraud, and corporate governance concerns that could put U.S. investors, including pensions, at risk.
I urge you to exclude Chinese-based companies trading publicly on U.S. stock exchanges from eligibility for SEC filing extensions. As our nation faces an unprecedented crisis, we have to put American safety and American businesses first.