Скачать или смотреть Senate Testimony: The China Challenge -- We Have to Shine a Light on China

Under Secretary of State, Keith Krach, testifies before the U.S. Senate Subcommittee on Security. Krach states that it's time to, "Shine the light on China."

Krach points out that Chinese companies on American stock exchanges are the only companies that don't obey Sarbanes-Oxley and can't get audited. "As a guy who's taken three companies public, that kind of makes me mad, but that's not the point. The point is it puts our American investors at risk. And it also creates an uneven playing field for our companies because any anybody in the business world understands that financial strategy is a key part of your competitive strategy. And this allows them to misstate their earnings, hide subsidized revenue, count things as perpetual revenue versus not. Luckin Coffee is a great example. American investors lost $300 million. So it gives the Chinese company a competitive advantage."

"It also sacrifices the gold standard of our American exchanges. The average American bondholder has financed the one belt, one way road. And, you know, the emerging index funds, it's all buried in there. That's why one of the things that I wrote in an op ed is that it is incumbent on US companies to disclose who are the financial institutions or who are the Chinese companies they invest in--particularly state pension funds, university endowments, mutual funds.

And I think shining that light in terms of disclosure is a great tool, just like reciprocity is a great tool, just like enforcement is a great tool. So we should really use that to the full extent we can because those concepts are just simple, right on, and easy to understand.