I 

116TH CONGRESS 

2D SESSION H. R. 7924 

To amend the Securities Exchange Act of 1934 to require issuers to disclose 

certain financial support from the Government of China, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

AUGUST 4, 2020 

Mr. BARR (for himself, Mr. MCCAUL, and Mr. RIGGLEMAN) introduced the 

following bill; which was referred to the Committee on Financial Services 

A BILL 

To amend the Securities Exchange Act of 1934 to require 

issuers to disclose certain financial support from the 

Government of China, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Transparency in Chi5 nese Government Investment Act of 2020’’. 


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1 SEC. 2. DISCLOSURE OF CERTAIN FINANCIAL SUPPORT 

2 FROM THE GOVERNMENT OF CHINA. 

3 Section 13 of the Securities Exchange Act of 1934 

4 (15 U.S.C. 78m) is amended by adding at the end the 

5 following: 

6 ‘‘(s) DISCLOSURE OF CERTAIN FINANCIAL SUPPORT

7 FROM THE GOVERNMENT OF CHINA.—Each issuer shall, 

8 in any annual report required under this section and in 

9 any prospectus in connection with an initial public offer10 ing, disclose the following: 

11 ‘‘(1) Any participation by such issuer in any in12 dustrial policy or development plan of the Govern13 ment of China, including— 

14 ‘‘(A) Made in China 2025; 

15 ‘‘(B) Military-Civil Fusion; 

16 ‘‘(C) Internet Plus; 

17 ‘‘(D) Guidelines to Promote the National 

18 Integrated Circuit Foundry Development Plan; 

19 ‘‘(E) the China Integrated Circuit Invest20 ment Industry Fund (or any similar fund at the 

21 provincial or local level); 

22 ‘‘(F) Strategic Emerging Industries Initia23 tive; and 

24 ‘‘(G) New Generation Artificial Intelligence 

25 Development plan. 


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1 ‘‘(2) Any financial support such issuer received 

2 from the Government of China through the partici3 pation described in paragraph (1), including— 

4 ‘‘(A) direct subsidies, grants, loans, or loan 

5 guarantees; 

6 ‘‘(B) reduction of taxes or tax exemptions; 

7 ‘‘(C) preferential treatment under the Gov8 ernment of China procurement policies; 

9 ‘‘(D) participation in domestic or inter10 national standard-setting organizations; 

11 ‘‘(E) prosecution or enforcement of Gov12 ernment of China intellectual property; 

13 ‘‘(F) access to research and development; 

14 and 

15 ‘‘(G) reduced prices for key inputs, includ16 ing land, power, and water. 

17 ‘‘(3) Any other financial support such issuer re18 ceived from the Government of China, including— 

19 ‘‘(A) direct subsidies, grants, loans, or loan 

20 guarantees; 

21 ‘‘(B) reduction of taxes or tax exemptions; 

22 and 

23 ‘‘(C) preferential treatment under the Gov24 ernment of China procurement policies. 


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1 ‘‘(4) Any conditions under which the financial 

2 support described in paragraphs (2) and (3) was 

3 provided, including— 

4 ‘‘(A) export performance; 

5 ‘‘(B) input purchases manufactured in 

6 China from specific producers or through the 

7 use of Government of China intellectual prop8 erty; and 

9 ‘‘(C) the assignment of Chinese Com10 munist Party personnel or Government of 

11 China personnel in corporate positions of the 

12 issuer. 

13 ‘‘(5) Any Chinese Communist Party committee 

14 established by such issuer, including— 

15 ‘‘(A) the standing of each such committee; 

16 and 

17 ‘‘(B) which personnel of the issuer form 

18 each such committee and the role of such per19 sonnel. 

20 ‘‘(6) The name, position, and location of each 

21 officer, director, and beneficiary of the issuer who at 

22 the time of such report holds or formerly held a po23 sition with— 

24 ‘‘(A) the Chinese Communist Party; 

25 ‘‘(B) the Government of China; 


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1 ‘‘(C) the Central Committee of the Com2 munist Party of China; 

3 ‘‘(D) the Central Military Commission of 

4 China; 

5 ‘‘(E) the Chinese People’s Political Con6 sultative Conference; 

7 ‘‘(F) the National People’s Congress of 

8 China; or 

9 ‘‘(G) a State Council in China. 

10 ‘‘(7) In the case of any prospectus in connec11 tion with an initial public offering in which an issuer 

12 makes a disclosure under paragraphs (1) through 

13 (6), whether such issuer offers more than one class 

14 of voting security.’’. 

Æ 


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