Montana State Auditor James Brown has joined elected leaders and financial officers nationwide urging the Securities and Exchange Commission (SEC) to investigate the delisting of Chinese companies that fail to meet U.S. anti-fraud and transparency standards. The move is aimed at protecting American investors and strengthening national security.
“Montanans should not be forced to roll the dice on companies that are controlled by the CCP,” Brown said. “If China won’t play by our rules, then they should not be allowed in our markets. Period. As your Auditor, my job is to protect you — whether it’s a scam in Sanders County or a Beijing billionaire.”
The letter highlights concerns over “VIE” shell companies, which make up more than 90% of U.S.-listed Chinese firms. These structures create uncertainty for investors, leaving them vulnerable to fraud and manipulation. In addition, national security risks arise because Chinese Communist Party (CCP) influence may extend into critical sectors, including healthcare and insurance.
Auditor Brown emphasized that American inspectors have already flagged serious issues, including falsified documents, underscoring the need for strict oversight.
As Montana’s Commissioner of Securities and Insurance, Brown regulates the state’s insurance and securities industries and serves ex officio on the Montana Board of Land Commissioners. He was elected State Auditor in 2024.