U.S. Senator Katie Britt Joins Bipartisan Letter to SEC on Risks from China-Linked Entities in U.S. Markets

WASHINGTON,D.C.– U.S. Senator Katie Britt (R-Ala.) joined a bipartisan group of senators in sending aletterto Securities and Exchange Commission (SEC) Chair Paul Atkins supporting the Commission’s ongoing efforts to address risks to U.S. investors and markets from China-linked entities accessing U.S. capital markets. The letter builds on the SEC’s recent work, including its Cross-Border Task Force to Combat Fraud, and highlights areas where additional review may help strengthen investor protection, market integrity, and national security safeguards.
In the letter, the lawmakers wrote,“China’s access to U.S. markets – without appropriate safeguards – can put American investors and our financial system at greater risk… the [People’s Republic of China (PRC)] directly and indirectly exerts pressure on Chinese-owned and controlled entities to prioritize Beijing’s geopolitical interests – not the well-being of U.S. investors and the integrity of our financial markets.”
The lawmakers continued,“American investors in these structures will – sometimes unknowingly – purchase shares in an offshore shell company contractually tied to a PRC-based operating entity… the structure leaves investors without insight into the operating entity’s true ownership structure, with weak contractual claims, and with little or no meaningful legal protection.”
The letter raises concerns about risks posed by opaque corporate structures of Chinese companies listed on U.S. exchanges, including variable interest entities (VIEs), as well as PRC legal and data-sharing requirements that may limit the SEC’s regulatory oversight and expose sensitive information of U.S. investors. The lawmakers also highlight the challenges U.S. regulators face in obtaining critical information due to PRC restrictions and underscore the importance of continued vigilance against fraud, manipulation, and misleading disclosures tied to foreign issuers.
Senator Britt joined Senators Tim Scott (R-S.C.), Mike Crapo (R-Idaho), Mike Rounds (R-S.D.), Thom Tillis (R-N.C.), John Kennedy (R-La.), Bill Hagerty (R-Tenn.), Cynthia Lummis (R-Wyo.), Pete Ricketts (R-Neb.), Jim Banks (R-Ind.), Kevin Cramer (R-N.D.), Bernie Moreno (R-Ohio), Dave McCormick (R-Pa.), Elizabeth Warren (D-Mass.), Chris Van Hollen (D-Md.), Raphael Warnock (D-Ga.), Andy Kim (D-N.J.), and Lisa Blunt Rochester (D-Del.) in sending the letter.
Senator Britt has long prioritized protecting American businesses from being exploited by foreign bad actors and ensuring that U.S. markets are best positioned for success. She has introduced theNot One More inch or Acre Act,Revitalizing America’s Offshore Critical Minerals Dominance Act of 2025,and theImproving Access to Small Business Information Act.
You can read the full letterhere.
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