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New Rules for Reporting China-Related Investment Risks

This act introduces new requirements for publicly traded companies to disclose financial risks associated with their operations in China. The goal is to better inform investors about potential threats, which could influence citizens' investment decisions and the security of their savings. This will provide citizens with a more complete picture of the risks involved in investing in companies with ties to China.
Key points
Companies will need to describe their reliance on and exposure to supply chains and operations in China, Hong Kong, Macau, Taiwan, Japan, Mongolia, North Korea, and South Korea.
Companies must disclose financial risks stemming from actions by the Chinese Communist Party or the Chinese government, including supply chain disruptions, asset nationalization, or intellectual property issues.
If a material risk is identified, companies must describe actions taken or planned to minimize it, as well as plans for significant disruptions in US-China economic relations, including PRC military action against Taiwan.
The new rules will take effect 180 days after enactment, giving companies time to adapt to the new reporting requirements.
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Additional Information
Print number: 118_HR_7757
Sponsor: Rep. Sherman, Brad [D-CA-32]
Process start date: 2024-03-20