Cut Chinese access to U.S. capital: pensions, listings, HK clearing, sovereign bonds
Navarro’s package would bar Chinese high-tech investment into the U.S., stop U.S. pensions from buying Chinese stocks, delist non-PCAOB-compliant Chinese issuers (or close A-shares / deregister sanctioned firms), block Hong Kong clearinghouses as conduits, and bar Chinese sovereign bonds from U.S. portfolios.
Mandate
Mandate Ch. 26 (Trade) — The Case for Fair Trade (Navarro): prohibit all Communist Chinese investment in high-technology industries; prohibit U.S. pension funds from investing in Communist Chinese stocks; delist Chinese stocks that do not meet PCAOB standards or alternatively close the Chinese A-shares market to U.S. investment and deregister U.S.-sanctioned Chinese companies; prohibit use of Hong Kong clearinghouses as transit points for American capital investing in the mainland; prohibit inclusion of Chinese sovereign bonds in U.S. investors’ portfolios.
Undo plan
1) Rescind blanket bans on Chinese portfolio investment not tied to HFCAA/PCAOB audit access failures or OFAC sanctions.
2) Restore ordinary ERISA fiduciary discretion for pensions absent statutory China bans; publish risk guidance instead of prohibition.
3) Keep HFCAA delisting for audit-inspection noncompliance; reverse broader A-shares closure beyond that.
4) Narrow outbound investment screening to national-security technologies with clear definitions and licenses.
5) Verify: SEC/PCAOB inspection reciprocity stats; pension China exposure disclosures.