Former Secretary of State Mike Pompeo recently raised concerns about the presence of Chinese companies on U.S. exchanges and the potential implications for American investors. Pompeo highlighted the fact that many Chinese companies are included in U.S. indexes and ETFs, allowing American investors to unknowingly support the expansion of the Chinese Communist Party, which is considered the country's number one adversary.
Pompeo criticized the lack of action from the Biden administration in addressing this issue, pointing out that the U.S. has the most liquid markets and should take steps to prevent the Chinese Communist Party from benefiting from American investments. He suggested that requiring Chinese companies to adhere to the same disclosure standards as other countries could help mitigate these risks.
Furthermore, Pompeo expressed concerns about the influx of Chinese nationals entering the U.S. through the open border. He suggested that some of these individuals may be working on behalf of the Chinese Communist Party, as they would have needed the party's permission to leave China.
Pompeo warned that allowing Chinese influence to grow unchecked in American institutions could have long-term consequences for national security. He emphasized the need for the U.S. to prioritize America-first policies and take a firm stance against Chinese interference.
In conclusion, Pompeo urged policymakers to address the issue of Chinese companies on U.S. exchanges and to be vigilant about the potential risks posed by Chinese nationals entering the country. He emphasized the importance of safeguarding American interests and preventing undue influence from foreign adversaries.
