About this episode
In this eye-opening episode of The Daily Signal podcast, Rob Bluey interviews Chris Iacovella, CEO of the American Securities Association. Iacovella recently testified before Congress about a disturbing financial reality many Americans are unaware of. Iacovella explains how Wall Street exploits multiple loopholes that allow companies controlled by the Chinese Communist Party (CCP) to access American capital markets, despite laws prohibiting foreign ownership of Chinese companies. Key points discussed: How American investments are unknowingly funding CCP activities, including the internment of Uyghurs, PLA weapons systems, cyber attacks against the U.S., and what the State Department has classified as genocide The "Variable Interest Entity" loophole: Americans who think they're buying shares in Chinese companies like Alibaba are actually only purchasing rights to a contract with a Cayman Islands company that contracts with the mainland Chinese company The "Passive Index" loophole: Asset managers include mainland Chinese companies in index funds sold to U.S. investors, allowing these companies to access American capital without complying with U.S. laws and regulations Bipartisan legislation from Rep. Andy Barr and Sen. John Cornyn aimed at identifying Chinese companies with ties to the military or specific technology infrastructure Why China's economic competition is fundamentally unfair: "When you have slave labor, no environmental laws, no OSHA laws, and no labor laws, of course it's going to be cheaper" Iacovella also explains the mission of the American Securities Association as a non-Wall Street trade association representing approximately 100 member firms across the country. Its mission is to "promote investor trust and confidence and to facilitate the flow of capital to small businesses across America." Listen now to understand how your investments might be inadvertently supporting a foreign adversary and what you can do about it. Keep Up With The Daily Signal Sign up for our email newsletters: https://www.dailysignal.com/email Subscribe to our other shows: Problematic Women: https://www.dailysignal.com/problematic-women The Signal Sitdown: https://www.dailysignal.com/the-signal-sitdown The Tony Kinnett Cast: https://www.dailysignal.com/the-tony-kinnett-cast Follow The Daily Signal: X: https://x.com/DailySignal Instagram: https://www.instagram.com/thedailysignal/ Facebook: https://www.facebook.com/TheDailySignalNews/ Truth Social: https://truthsocial.com/@DailySignal YouTube: https://www.youtube.com/user/DailySignal Rumble: https://rumble.com/c/TheDailySignal Thanks for making The Daily Signal your trusted source for the day’s top news. Subscribe on your favorite podcast platform and never miss an episode. Learn more about your ad choices. Visit megaphone.fm/adchoices