Two Republican lawmakers have called on the U.S. Securities and Exchange Commission (SEC) to delist a number of Chinese companies, including Alibaba Group (9988.HK), citing concerns over national security due to alleged ties to the Chinese military, the Financial Times reported on Friday.
US lawmakers have urged SEC to delist Alibaba, BABA, and other Chinese companies
5/3/2025
John Moolenaar, chair of the House Select Committee on China, and Rick Scott, who chairs the Senate Committee on Aging, sent a letter to SEC Chair Paul Atkins urging action against 25 Chinese firms listed on U.S. stock exchanges, according to the report.
“These entities benefit from American investor capital while advancing the strategic objectives of the Chinese Communist Party—supporting military modernization and committing serious human rights abuses,” the lawmakers reportedly wrote. “They also pose an unacceptable risk to American investors.”
The list of companies includes major names such as search engine Baidu (9888.HK), e-commerce platform JD.com (9618.HK), and social media giant Weibo (9898.HK).
Despite their commercial appearance, the lawmakers argued, these businesses are “ultimately harnessed for nefarious state purposes,” according to the FT.
They also emphasized that under the Holding Foreign Companies Accountable Act, the SEC has the legal authority to halt trading and initiate delisting procedures against such companies.
The SEC, along with Alibaba, Baidu, and JD.com, did not immediately respond to Reuters’ requests for comment. Neither the Select Committee on the Chinese Communist Party nor the U.S. Senate committee issued statements in response.
Currently, over 100 Chinese firms are traded on U.S. exchanges, collectively valued at around $1 trillion. Investor worries about forced delistings of Chinese stocks have resurfaced amid ongoing tensions and trade disputes between Washington and Beijing.
Meanwhile, China announced on Friday that it is “evaluating” an invitation from the U.S. to hold talks over President Donald Trump’s sweeping tariffs, suggesting a possible softening in the trade conflict that has rattled global markets.
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