SAFE from PRC Investments Act

12/15/2023, 3:53 PM

Securing American Families and Enterprises from People's Republic of China Investments Act or the SAFE from PRC Investments Act

This bill requires certain issuers of securities and funds traded on an exchange to report on connections to China or the Communist Party of China. In particular, an issuer with specified connections to China must annually disclose a variety of details, including

  • whether executive-level employees, senior directors, or board members are members of the Communist Party of China;
  • interactions with the party;
  • expenditures in China;
  • expenditures in the United States regarding operations and lobbying activities; and
  • the ability of the Public Company Accounting Oversight Board to audit the issuer.

Additionally, an exchange-traded fund that invests in a Chinese company must annually disclose about that company

  • ownership information,
  • party involvement,
  • whether the company participates in specified Chinese policies or activities,
  • any ties to U.S.-sanctioned individuals, and
  • the types of products or services produced by the company.
Congress
118
Number
HR - 499
Introduced on
2023-01-25
# Amendments
0
Sponsors
+5
Cosponsors
+5

Variations and Revisions

1/25/2023
Text
PDF
XML

Status of Legislation

Bill Introduced
Introduced to House
House to Vote
Introduced to Senate
Senate to Vote

Purpose and Summary

Securing American Families and Enterprises from People's Republic of China Investments Act or the SAFE from PRC Investments Act

This bill requires certain issuers of securities and funds traded on an exchange to report on connections to China or the Communist Party of China. In particular, an issuer with specified connections to China must annually disclose a variety of details, including

  • whether executive-level employees, senior directors, or board members are members of the Communist Party of China;
  • interactions with the party;
  • expenditures in China;
  • expenditures in the United States regarding operations and lobbying activities; and
  • the ability of the Public Company Accounting Oversight Board to audit the issuer.

Additionally, an exchange-traded fund that invests in a Chinese company must annually disclose about that company

  • ownership information,
  • party involvement,
  • whether the company participates in specified Chinese policies or activities,
  • any ties to U.S.-sanctioned individuals, and
  • the types of products or services produced by the company.
Alternative Names
Official Title as IntroducedTo amend the Securities Exchange Act of 1934 to require certain additional annual disclosures by public companies and exchange-traded funds investing in companies with ties to the People's Republic of China, and for other purposes.
Policy Areas
Finance and Financial Sector

Comments

Related

Member:  Monica De La Cruz

Recent Activity

Latest Summary4/3/2023

Securing American Families and Enterprises from People's Republic of China Investments Act or the SAFE from PRC Investments Act

This bill requires certain issuers of securities and funds traded on an exchange to report on connectio...

Latest Action1/25/2023
Referred to the House Committee on Financial Services.