To amend the securities laws to require certain disclosures and reports with respect to the exposure of issuers to China and the threat of sudden loss of market access between the United States and China, and for other purposes.
About This Bill
Committee
Latest Action · July 25, 2024
Referred to the House Committee on Financial Services.
The PRC Risk Transparency Act requires large U.S. publicly traded companies and investment firms to disclose their financial exposure to China and related national security risks. Companies with at least $1 billion in market value that derive 5 percent or more of revenue, capital investment, or supply chain materials from China, as well as larger companies with 25 percent or more such exposure, must file annual reports detailing their China-based revenues, profits, capital investments, and supply chain dependencies. They must also disclose relationships with Chinese military companies, sanctioned entities, and the Chinese government, and explain their preparedness for a scenario involving severe U.S.-China sanctions and trade restrictions similar to those imposed on Russia following its 2022 invasion of Ukraine. Investment advisers managing $500 million or more must provide quarterly reports to clients and regulators about how such a conflict scenario would affect investment returns. The Securities and Exchange Commission has 60 days from enactment to issue implementing rules, which must include protections for proprietary business information and safe harbors protecting companies from liability for good-faith disclosures.
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