Senator Proposes Ban on Owning Securities of Sanctioned Chinese Firms

Sen. Pete Ricketts, R-Neb., introduced bills last week aimed at curbing U.S. investment in China.

His People's Republic of China Military and Human Rights Capital Markets Sanctions Act would prohibit Americans from owning the publicly traded securities of U.S.-sanctioned companies. His No China in Index Funds Act would bar index mutual funds from holding Chinese stocks.

Both bills were referred to the Senate Banking Committee. Reps. Brad Sherman, D-Calif., and Victoria Spartz, R-Ind., introduced companion legislation in the House in March. Sen. Rick Scott, R-Fla., proposed similar measures in June (see 2406270029).

Ricketts introduced his bills as the Treasury Department works on regulations to prohibit certain U.S. outbound investment in three Chinese technology sectors, although those proposed regulations wouldn't restrict investments in publicly traded securities and index funds (see 2406210034).