British-based bank HSBC reportedly allowed Beijing to set up a Chinese Communist Party (CCP) committee within its China-based investment banking subsidiary. Under Chinese law, these committees are required to implement the Party’s principles and policies within the company, with zero limiting factors.
- “These communist party committees are not just for show. They exist to influence, monitor, and ultimately control the company.
- “Investors need to be aware. Companies operating in China always give into the Chinese Communist Party. And Beijing’s interests are weakening and destabilizing America, not returning a good investment to American retirees.” — U.S. Senator Marco Rubio (R-FL)
There is growing concern additional companies may follow HSBC’s lead, if they have not already. According to the Financial Times, a person familiar with HSBC’s decision said, “You don’t second guess the authorities in China. … Any American bank who isn’t doing the same is playing a dangerous game.”
Writing in the Wall Street Journal earlier this week, Rubio warned, “The risk of Communist infiltration is widespread because the number of publicly traded companies operating in China—from tech giants and advanced manufacturers to shoemakers and drug companies—is staggering. Financial companies … are among the most vulnerable.”
Looking forward … Rubio will push for SEC disclosure of these communist committees for any company operating on U.S. stock exchanges. He introduced legislation in February with Senator Marsha Blackburn (R-TN) and Representative Claudia Tenney (R-NY) to do exactly that.
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- July 2022: ICYMI: Rubio in WSJ: Expose Secret Chinese Communist Cells
- February 2022: Rubio, Blackburn, Tenney Introduce Bill to Expose CCP Influence on Publicly Traded Companies
- November 2020: Rubio Presses McKinsey on Reports of CCP Committees in China-based Operations