Communist China is getting more totalitarian – even with foreign investment fund management firms operating on its soil. The Chinese regime is now requiring all foreign firms – including American ones – to set up an internal unit for surveillance and supervision by the ruling Chinese Communist Party (CCP).
Other Chinese national laws require all companies in the country, including foreign firms, to establish internal CCP organizations. However, those laws have been largely symbolic.
Until now.
Ignites Asia — an extension of Financial Times — first reported that in May, the China Securities Regulatory Commission (CSRC) implemented new changes to its industry rules governing publicly offered securities investment funds.
This week it reported that one of the provisions in the new CSRC rules requires that these companies establish a CCP organ within their companies.
According to a translation by Ignites Asia, the provision states:
Fund management companies shall, in accordance with the provisions of the Articles of Association of the Communist Party of China, establish party organizations, carry out party activities, and provide necessary conditions for the activities of party organizations.
State-owned fund management companies shall, in accordance with relevant regulations, integrate party leadership into all aspects of corporate governance, and include party building work requirements into the company’s articles of association, so as to implement the legal status of party organizations in the corporate governance structure.
Logan Wright – leader of China Markets Research for the Rhodium Group – told Ignites Asia that “It’s another small signal that China’s system is increasingly diverging from global business practices and norms, rather than converging with them over time.”
Wright added that the requirement for foreign businesses to accept a CCP unit within their structure will “add to the perceived political risks associated with deepening foreign investment in China.”
Coincidentally, the new rules specifically governing fund companies come as major U.S. and international investment firms are working to bring branches of their business to China.
As American Military News reported:
A Shanghai-based lawyer who works with foreign business managers told Ignites Asia that this rule is the first explicit “party organization” requirement for the public fund industry. The lawyer, who declined to be named due to the political sensitivity of the matter, told Ignites Asia the new rule applies to foreign-Chinese joint ventures and the Chinese subsidiaries of wholly foreign-owned companies working in China. U.S. multinational firms like BlackRock, Fidelity, and Neuberger Berman are among these entities expanding into the Chinese market.
Maybe it’s time these huge American investment businesses stop ‘trading with the enemy’ and focus their powerful financial efforts elsewhere.
ADN
The opinions expressed in this article are those of the author and do not necessarily reflect the positions of American Liberty News.
Paul Crespo is the Managing Editor of American Liberty Defense News. As a Marine Corps officer, he led Marines, served aboard ships in the Pacific and jumped from helicopters and airplanes. He was also a military attaché with the Defense Intelligence Agency (DIA) at U.S. embassies worldwide. He later ran for state and federal office, taught political science, wrote for the editorial board of a major newspaper and had his own radio show. A graduate of Georgetown, London and Cambridge universities, he brings decades of experience and insight to the issues that most threaten our American liberty – at home and from abroad. To read more go to: paulcrespo.com.
Piss poor decisions, lousy judgements, compromised bought and paid for policy positions,they could not have elected more of an anti American leader then if you put in some Chinese communist war lord, maybe you have, listening to Hunter Biden brag about his influence over his fellow corrupt big guy father. Why do we have open borders for illegal’s, drugs, disease? the war on our energy industry? inflation shortages? all stemming from a corrupt leadership, making decisions against our American way of life, it’s values. His America last policy is killing our Country.The mid terms are coming closer, vote out these democrats, keep them out of impeach every ass hole who broke his oath to our Country to protect and serve, replace them with those who love our country and are not looking to line their own pockets, but serve the America they are trying to take away from us. At the rate most of his cabinet members continually claim covid relapses, they should all be tested for monkey pox, staring with that male clown running around the white house in a dress, then again we all remember the secret painting of bill Clinton in high heels and and a blue dress.The democrats have no moral attributes, oath breakers and liars, one and all. Their America last policy will cost them everything with the midterms upcoming. Put an end to corruption and abuse of power.
Unfortunately we also have Republican traitors in Congress more than willing to vote away our Rights.
That behavior is not really motivation to vote for Republicans.
The communist chinese government has every american in china under surveilance and if you don’t think so, they’ve already fooled you! It was time long ago to leave there but profit got in the way and things were overlooked due to the lure of profits.
They have given up their independence for money, and most are too old to give a damn, And they won’t be back short of imprisonment!
Agreed! Pull your assets out while you can, before the CCP comes in and takes over…
I take it down, how’s that American Liberty!
If all those companies didn’t see this coming then they aren’t as smart as they are trying to tell their customers they are. What this country needs to do is to get our medical and sensitive electronics companies out of there before they kill us with the meds we take, or render our military electronics equipment useless. People, especially our government officials, should not be surprised at anything they do because they play the long game in their quest for world domination.
ALL companies leave China, OK Tesla
America is finally figuring out what we, the citizens, already hold to that we in America need to have American manufacturing plants built here in America for our citizens. We need to manufacture our essentials here in America. When it comes to various minerals and resources needed, we procure such, through agreements with non-socialist countries who have humanist laws. Europe has many nations with no child labor laws. There is always a means by which we can acquire the resources needed to produce whatever product we need to manufacture whatever product. Democrats are wrong in how they manage our labor industries. They don’t want people to work, so that is why they ship our jobs to other countries.
Donald Trump was pushing to bring American Corporations back on shore and they turned on him with a hatred previously unknown in history. Now let them suck it up because when everything goes pear shaped over Taiwan, they will be Nationalized by the CCP in a flash!
If The Donald was still President, this would’ve already happened!!!!!!
we made China rich by producing our goods there,,,,,, as they saying goes “whoever has the gold, makes the rules” ……So as long as we keep buying “Made in China” don’t be surprised one day if they rule over us……all in the name of corporations making a buck off slave labor,,,,,, and us consumers not wanting to pay higher prices ….. it’s bound to happen…..one day ……America will be under China