In an op-ed published Wednesday, Senator Marco Rubio (R-FL) called on Wall Street to stop enabling Communist China. Specifically, Rubio wrote in The American Prospect that investors are clueless about Chinese influence.
He argued that many American investors unwittingly tied themselves financially to Chinese companies. These investors remain unaware that these firms have ties to China’s Communist Party.
‘Height Of Hypocrisy’
“It’s the height of hypocrisy. U.S. corporations with lucrative business ties to the Chinese Communist Party will boycott states here over anti-abortion laws, while Beijing systematically sterilizes Uyghur women.
They routinely inflame divisive race issues within the US while marginalizing African American actors or erasing Tibetan characters to keep Chinese audiences happy,” Rubio argued.
The senator noted that China opened its market to American financial companies. These companies also ended up listed on American stock exchanges.
As a result, American investors’ portfolios will often make investments in Chinese companies. Ultimately, many well-meaning American investors will find themselves propping up “a genocidal regime.”
It becomes easy to do because Wall Street will do it for them, Rubio said. He added that US stock and capital markets should cut off Chinese firms.
Shareholder National Securities Awareness Act
Rubio also suggested requiring increased scrutiny of activist investors. In particular, he pinpointed companies tied to national security work or supply chains. Rubio filed a bill last month, the Shareholders National Securities Awareness Act.
The bill proposes to lower the threshold for disclosure of investor shareholdings. From 5%, Rubio proposes to lower the threshold to 2.5% of outstanding shares.
This applies to investors who want to influence company management. Specifically, this covers moves that can affect national security or supply chain assets.
Republican Criticism Over China Stance
Rubio’s article forms part of growing Republican criticism over China’s influence. GOP members criticized many companies and media figures that defer too much to China.
They call out their overtly delicate handling of anything deemed offensive to China. Recently, wrestler John Cena apologized to Chinese fans for calling Taiwan a country.
Washington and Beijing are in a tense standoff over sovereignty claims over Taiwan. China wants the US to recognize its right in claiming Taiwan as a province.
Other issues that crop up include China’s treatment of Uyghur Muslims in the Xinjiang province. Former President Donald Trump fearlessly declared it genocide. However, The Biden administration saw fit to review this policy.
Meanwhile, National Intelligence director Avril Haines said that the US maintains a “strategic ambiguity” policy. This means the US will remain ambivalent in its support for Taiwan if China decides to attack.
Watch The Hill’s video reporting on Florida Senator’s Marco Rubio warning of the threat from communist China:
Do you agree with Senator Marco Rubio that US companies should stop enabling Communist China through Chinese companies? Also, are US companies deferring too much in the name of Chinese market share?
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