Washington Post: China’s infiltration of U.S. capital markets is a national security concern
There’s another good reason to reconsider transferring billions of dollars of U.S. taxpayers’ money into China; that’s investment that might otherwise go to U.S. companies to create U.S. jobs. As Joe Biden said in Iowa this week, “When it comes to taking on China, first, let’s invest in ourselves.”
“It is outrageous that long-term passive investment dollars are being funneled out of the U.S. and into opaque companies that avoid routine financial audits,” said Christopher Iacovella, chief executive of the American Securities Association, which advocates for small businesses and small investors. “Senator Rubio is standing up for American investors by raising very important questions about the inclusion of some Chinese companies in stock indexes.”
Wall Street is aiding the Chinese government in its effort to get Americans to fund China’s economic aggression. But the issue is now being taken out of Wall Street’s hands.
Policymakers and lawmakers are going to try to force Chinese companies to play by the rules or force Wall Street to stop helping them. For Beijing, economics and national security are closely linked. The United States can no longer pretend that’s not the case.
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