The coronavirus pandemic has brought the threat that China poses to the forefront of many Americans’ minds. As my colleague, Claudia Rosett, says in her recent policy focus for IWF:
A colossal tragedy of our time is the rise of China, not as a responsible member of a liberal world order, but as a huge, disruptive, repressive and predatory player. China’s expanding ambitions and aggressive actions are fast translating into a showdown with the U.S., leader of the free world and keeper since World War II of what is now an increasingly imperiled Pax Americana.
As a sign of recognizing the threat of China, Yahoo Finance reports:
The Senate passed a bill by unanimous consent on Wednesday to take on Chinese companies listed on U.S. exchanges.
The legislation would require the companies to submit to a range of stringent provisions to avoid being booted.
First, they must disclose whether they are owned or controlled by a foreign government. Second, and perhaps most intrusively, they would have to comply with audits from the Public Company Accounting Oversight Board (PCAOB) for three years in a row.
Through this bill, the Senate is taking an important step in protecting our country from a country whose ruling party, the Chinese Communist Party (CCP), a dictatorship that demands blind obedience from all citizens, and their companies.
But while the Senate is working to protect Americans, not all American businesses are on board. According to The National Center for Public Policy Research, Blackrock, the largest asset manager in the world,
continues to support liberal shareholder initiatives while investing heavily in Chinese companies that lack basic stewardship and regulatory oversight.
While here at IWF we usually champion the freedom and innovation of private businesses over governmental action or oversight, Chinese involvement (or growing takeover) in the world economy must be countered for the sake of national security.
Our country is struggling in the long path to regrowth after the economic devastation brought about by the coronavirus crisis. Private companies such as Blackrock should be working to help American communities recover. But instead of joining this new American project, Blackrock continues to expose us to the growing threat of China through its risky investments.
Let’s hope that other companies follow the lead of the U.S. Senate and work to protect American interests here and abroad.