![](https://homelandprepnews.com/wp-content/uploads/2021/11/shutterstock_1041238999.jpg)
On Thursday, U.S. Rep. Blaine Luetkmeyer (R-MO), chair of the House Financial Services Subcommittee on National Security, Illicit Finance, and International Financial Institutions, joined U.S. Rep. John Moolenaar (R-MI), chair of the House Select Committee on the Chinese Communist Party (CCP), to introduce legislation improving transparency with regard to U.S. investment into and reliance on the People’s Republic of China (PRC).
The legislation, the PRC Risk Transparency Act, would force public companies that have meaningful exposure to China to disclose what percentage of their revenue, profit, capital investment and supply chain is tied to the PRC. Additionally, it would require the companies to disclose their relationships with the CCP and with companies the federal government has identified as a national security or human rights threat.
“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,” Luetkemeyer said. “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.”
If passed, the bill would require companies to assess what a geopolitical conflict with China would mean for their business by mandating a market access loss scenario where US-China trade falls by 80 percent due to Chinese military aggression. The legislation also directs investment firms to disclose their holding in Chinese securities.
“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,” Moolenaar said. “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.”