Top Republican Senator Marco Rubio has introduced legislation to block access to US capital markets for Chinese companies that have been blacklisted by Washington, threatening a blow against Chinese firms that rely on US investors for funding, reported Reuters.
The bill, which Rubio submitted late on Monday, would bar US investment firms, retirement funds, and insurance companies from taking stakes in Chinese companies that have been placed on a trade black list overseen by the Commerce Department or added to a list of firms backed by the Chinese military according to the Pentagon.
If the legislation is approved, blacklisted Chinese companies would also be banned from trading on US exchanges after a year-long grace period, said Reuters.
“The Chinese Communist Party’s exploitation of US capital markets is a clear and ongoing risk to US economic and national security that must be addressed,” Rubio said in a statement to Reuters.
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