Republican Senators Push to Delist Chinese Technology Firm

Republican Senators pressed the SEC and Treasury to delist a Chinese technology firm from the NASDAQ and place it on the Office of Foreign Assets Control ("OFAC") Chinese Military-Industrial Complex Companies List.

In their letter to SEC Chair Paul S. Atkins and Treasury Secretary Scott Bessent, the Senators argued that the firm’s continued presence on U.S. markets contradicts NASDAQ’s listing standards and allows American investors to finance China’s military modernization in violation of U.S. policy. They also highlighted Treasury’s authority under Executive Order 13959 to add the company to the Chinese Military-Industrial Complex Companies List, which imposes restrictions on firms operating in China’s defense or surveillance technology sectors.

The Senators highlighted the Department of Defense’s designation of the firm as a Chinese military company under section 1260H the National Defense Authorization Act, a determination reaffirmed by a federal district court in July 2025. The Senators pointed to evidence that the firm's technology supports China’s defense sector, including combat vehicles and surveillance systems tied to human rights abuses, and raised concerns about espionage risks in the Asia-Pacific region.

The Senators further requested a response outlining a plan to protect U.S. investors from inadvertently financing China’s military modernization by October 1, 2025.