Senate Republicans are urging Security and Exchange Commission Chair Gary Gensler to investigate an alleged bait and switch by the Chinese Communist Party.
Seven Republican Senators urged in a letter Wednesday for Gensler to investigate concerns the CCP coffered money from American investors after ordering its Cyberspace Administration of China (CAC) to investigate a Chinese company shortly after its IPO filing on the New York Stock Exchange (NYSE).
The senators cited the stock price plunged after Beijing-based ride-hailing company Didi Global had its IPO.
"Immediately following the IPO, the CCP's cyber arm, the Cyberspace Administration of China (CAC), opened an investigation into Didi claiming that the company violated Chinese privacy and national security laws," the Senators' letter reads.
"Resulting from this CAC crackdown, Didi's stock price plummeted only two days after its IPO. The timing of the CAC investigation conveniently occurred after the company was able to snatch billions of dollars from American investors."
The letter highlights the "news reports suggest that the CCP will penalize Didi almost $3 billion, which means that these American dollars could be going directly into CCP coffers."
The Republicans letter also pressured Gensler to pursue "expeditious implementation and enforcement" of a bill sponsored by Sen. John Kennedy, R-La., to eliminate China-based companies from United States stock exchanges if they refuse to let federal regulators review their books.
The Senate passed a follow-up bill in June that would speed up the timeline for China-based companies to be booted.
Kennedy and fellow Sens. Tom Cotton, R-Ark., Kevin Cramer, R-N.D., Bill Hagerty, R- Tenn., Marsha Blackburn, R-Tenn., and Rick Scott, R-Fla., all signed the letter.
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