Us Congress Senate Bill SB152

Us Congress 2023-2024 Regular Session

• Introduced: 1/30/23
• Refer: 1/30/23

Caption

American Financial Markets Integrity and Security Act

Impact

If enacted, SB152 will significantly impact investment practices involving these covered entities, primarily affecting investment companies, insurance companies, and pension funds. These companies will be prohibited from investing in entities identified as linked to the Chinese military, leading them to reassess their portfolios and investment strategies. Additionally, federal funds cannot be used to engage in contracts with these companies, thus further isolating them from American financial channels and reinforcing measures to protect national interests.

Summary

SB152, known as the American Financial Markets Integrity and Security Act, aims to prohibit the trading of securities issued by certain Chinese military companies on national securities exchanges. The legislation is motivated by national security concerns regarding China's military operations and potential threats posed by companies closely associated with the military sector. The bill seeks to protect American financial markets and investors by restricting access to these military enterprises, which are categorized as 'covered entities' under the law.

Contention

While the bill garners support from lawmakers concerned about national security, it also faces criticism from those who argue that such prohibitive measures could escalate tensions between the U.S. and China. Critics express concerns that blanket restrictions might hinder legitimate business relations and economic opportunities with certain Chinese firms that do not engage in military activities. Additionally, the bill’s provisions could lead to diplomatic friction, as it imposes stringent investing guidelines and market access limitations.