West Virginia State Treasurer Larry Pack is joining a growing number of financial leaders across the nation calling for the removal of Chinese companies from U.S. stock exchanges due to national security concerns and regulatory violations.
In a letter sent on May 20 to Paul Atkins, chairman of the U.S. Securities and Exchange Commission (SEC), Pack and 20 other state financial officers urged federal regulators to investigate and potentially delist companies based in China from the New York Stock Exchange and Nasdaq.
Pack emphasized that the increasing threat posed by the Chinese Communist Party’s influence over companies operating in U.S. financial markets must be addressed head-on. “Efforts led by the Chinese Communist Party to circumvent U.S. regulatory structures have put American dollars at risk,” Pack stated in a release.
“We should be doing everything in our power to hold bad foreign actors accountable—especially those connected to Communist China who attempt to steal U.S. trade secrets to be weaponized against the United States.”
The letter accuses Chinese firms of noncompliance with essential U.S. audit requirements. It also raises concerns about widespread audit deficiencies, Chinese crackdowns on independent financial research, and even alleged stock manipulation.
State treasurers argue that such behaviors undermine the transparency and trust needed for American financial systems to function securely.
The letter goes on to criticize the Chinese government for creating an environment of secrecy that directly violates the principles of the Securities Exchange Act and the Holding Foreign Companies Accountable Act of 2020 (HFCAA).
“The Chinese government’s actions create an environment of opaqueness that is antithetical to the reporting requirements and fraud prohibitions of the Securities Exchange Act,” the treasurers wrote.
Signed into law in 2020 by President Donald Trump, the HFCAA empowers the U.S. to delist companies from stock exchanges if they fail to comply with audit inspections.
The SEC can take action when companies refuse to allow U.S. regulators to inspect their audit records. In 2021, the New York Stock Exchange delisted three major Chinese telecom firms—China Telecom, China Mobile, and China Unicom—under this law.
This isn’t Treasurer Pack’s first step toward economic distancing from China. Since taking office in January 2025, he has made it a priority to review the state’s financial exposure to Chinese companies.
In February, Pack proposed a plan to the Board of Treasury Investments to identify and divest from any Chinese-owned or controlled companies in the state’s short-term investments. That proposal was approved in March.
Looking ahead, Pack plans to present a similar initiative to the state Investment Management Board when he assumes the role of chairman of its Board of Trustees in July.
Pack has also moved to restrict digital access tied to Chinese technology. Last month, he announced a ban on DeepSeek, a Chinese-developed artificial intelligence application, from all mobile devices used by employees in the state treasurer’s office.
This move follows existing state bans on apps like TikTok and WeChat due to similar security concerns.
With these recent actions, Treasurer Pack is making it clear that he views financial oversight and cybersecurity as top priorities. As part of a broader national trend, his push to hold Chinese companies accountable adds momentum to a wave of bipartisan scrutiny over foreign influence in America’s financial and technological infrastructure.
