US bill to keep Chinese firms out of federal government retirement plan

  • US lawmakers introduced a bipartisan bill on Wednesday that would prevent the federal government’s retirement plan from holding Chinese companies, the latest in a series of laws and executive orders aimed at restricting the ability of US entities to fund technologies that could harm American national security.
  • The bill would block the Thrift Savings Plan from investing in firms based in or closely affiliated with China, Iran, North Korea, and Russia.
  • The prohibited companies identified in the Taxpayers and Savers Protection (TSP) Act include not only those headquartered in, or listed on, an exchange of one of the four countries, but also those deriving more than half their revenues within the countries.
  • The bill is a revised version of one introduced last year by Shaheen, Rubio and three other Republicans, and only targeted companies affiliated with China. It was referred to the Senate Homeland Security and Governmental Affairs Committee, but never passed.
  • That law had threatened to delist nearly 170 mainland Chinese companies with a combined market value of USD1.5tn if US regulators were not allowed to inspect their audit records.

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