JONES CONTINUES FIGHT AGAINST COMMUNIST CHINESE TAKEOVER OF AMERICAN MARKETS

Jul 11, 2017 Issues: Economy and Jobs

WASHINGTON, DC – Congressman Walter B. Jones (NC-3) is once again raising concerns over Chinese acquisitions of American markets and companies.  Earlier this year, Congressman Jones and over 50 of his congressional colleagues sounded the alarm about the proposed takeover of the Chicago Stock Exchange (CHX) by a Chinese firm – Chongqing Casin Enterprise Group (CCEG).  The decision about whether to approve or deny that transaction now lies before the U.S. Securities and Exchange Commission (SEC).  In a letter to SEC Chairman Jay Clayton sent yesterday, Jones and 10 of his colleagues urged the SEC to deny the proposed takeover.  Jones and his colleagues believe Chinese ownership of the Chicago exchange poses financial, economic, and cyber-security risks to America.

“A communist Chinese takeover of a trillion dollar American market could have highly dangerous and detrimental effects on the US economy,” said Congressman Jones.  “In my view, the SEC should immediately reject this proposed acquisition.”

Specifically, the letter states: “Given the lack of transparency within China and the dominant nature of its governance, we have substantial concerns related to the SEC’s ability to monitor and regulate the upstream ownership of CCEG. Approving opaque upstream ownership of CHX would: (1) strip the SEC of its ability to carry out its statutorily mandated oversight of upstream ownership; (2) promote the improper consolidation of ownership and coordinate voting control over CHX, and; (3) materially harm the public trust in the independent and objective operation of U.S. capital markets.”

Congressman Jones has consistently fought against the efforts of communist China to buy strategic American businesses.  In 2013, Congressman Jones fought the Chinese purchase of Smithfield Foods, Inc., the world’s largest pork producer and processer.  Despite his efforts, the merger was finalized and was the largest-ever acquisition of an American corporation by a Chinese company.

The full letter to Chairman Clayton is attached.

For additional information, please contact Allison Tucker in Congressman Walter Jones’ office at (202) 225-3415 or Allison.tucker@mail.house.gov.

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