Capital Markets Transparency and
Security: The Nexus Between U.S.-China Security Relations and
America's Capital Markets
NEXT STEPS
The field of capital markets security has only recently been
introduced to America's policy-making community. The funding
patterns of global "bad actors" and those governments
that may be judged to be potential adversaries of the United
States are not sufficiently understood. Similarly, the functioning
of America's capital markets has never before been viewed through
a national security lens. These shortcomings must be rapidly
redressed.
While official Washington struggles to get a handle on the complexities of
this 21st century issue area, NGO's, some Members of Congress and other activists
will likely continue to oppose certain foreign offerings that do not reflect
their fundamental values and perceptions of U.S. national interests. At the
same time, the fundraising activities of global "bad actors" continue
to escalate, especially as the markets grow more receptive to higher yield
emerging market securities.
There remain a number of immediate steps that could be undertaken by the federal
government to strengthen transparency and disclosure requirements and evaluate
capital markets security. Additionally, the U.S.-China Commission can play
an important role in raising Congressional and national awareness regarding
the PRC's fundraising activities and offering non-disruptive policy prescriptions
to relevant legislative committees and government agencies. Recommendations
regarding possible actions by the federal government and the Commission have
been provided to the Commission for its internal consideration.