US lawmakers urge SEC to delist Alibaba

• Published On: 04 May 2025 at 03:28

Two Republican legislators have petitioned the Securities and Exchange Commission to delist a group of Chinese corporations, including digital behemoth Alibaba, citing alleged military ties and concerns about US national security, the Financial Times reported Friday.

John Moolenaar, chair of the House Select Committee on the Chinese Communist Party, and Rick Scott, chair of the Senate Committee on Aging, expressed their concerns in a letter to SEC Chair Paul Atkins. The letter identifies 25 Chinese companies listed on US stock exchanges, including Baidu, JD.com, and social media site Weibo.

"These entities benefit from American investor capital while advancing the strategic objectives of the Chinese Communist Party—supporting military modernization and gross human rights violations," the lawmakers wrote, according to the Financial Times. "They also pose an unacceptable risk to American investors."

The letter contends that, despite their commercial veneer, the enterprises serve "nefarious state purposes" under Chinese government direction. The lawmakers urged the SEC to use its authority under the Holding Foreign Companies Accountable Act to halt trade and initiate delisting procedures.

The SEC and the companies named in the letter did not immediately reply to demands for comment. Neither did the relevant congressional committees.

Currently, over 100 Chinese companies are listed on U.S. markets, with a combined market valuation of around $1 trillion. Concerns about forced delistings have resurfaced amid ongoing tensions between Washington and Beijing, exacerbated by trade disputes and regulatory clashes.

Meanwhile, Beijing announced on Friday that it is "evaluating" a proposal from Washington to reopen trade negotiations, indicating a potential lessening of hostilities that have worried global markets.