Alibaba Group Holding Ltd – ADR (NYSE:BABA) shares are trading lower Wednesday after two senior U.S. lawmakers called on the Securities and Exchange Commission to delist it along with other U.S.-listed Chinese companies.
What To Know: According to the Financial Times, Rep. John Moolenaar (R-Mich.) and Sen. Rick Scott (R-Fla.) called on the SEC to delist it and 24 other companies because the companies have military links that make them a national security risk.
Some of the other companies include JD.Com, Inc. (NASDAQ:JD) and Baidu Inc. (NASDAQ:BIDU).
Moolenaar chairs the House Select Committee on China, while Scott leads the Senate Committee on Ageing.
In the letters, the lawmakers wrote: “These entities benefit from American investor capital while advancing the strategic objectives of the Chinese Communist party . . . supporting military modernisation and gross human rights violations.”
Moolenaar and Scott argue that even if Chinese organizations seem commercial, they can still be exploited for harmful state objectives due to China's military-civil fusion policy, which mandates companies to hand over technology to the People's Liberation Army if directed by the government.
As of March 2025, there are approximately 286 total Chinese companies listed on U.S. exchanges.
BABA Price Action: Alibaba shares closed Wednesday down 3.47% at $123.23, according to data from Benzinga Pro.
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