23 Sep 2026 Ahead of Trump-Xi Meeting, Warnings Grow Over China Supply-Chain Risks

Washington, D.C. - With President Donald Trump and Chinese President Xi Jinping set to meet this week, pressure is building on the U.S. Securities and Exchange Commission (SEC) to require publicly traded companies to disclose the risks their dependence on China could pose to investors.

The Coalition for a Prosperous America (CPA), a bipartisan organization representing American manufacturers and producers, has added its voice to the effort, backing a June petition from the National Center for Public Policy Research's Free Enterprise Project (FEP) that calls on the SEC to provide guidance on disclosing supply-chain risks that could result from an abrupt break in U.S.-China relations.

In his letter to the SEC commissioners, CPA President Jonathan Toomey discusses the potential flashpoints involved with China's claims to Taiwan and nearly all of the South China Sea, and writes:

CPA has long held that U.S. investors are inadequately informed of the material risks of investments in publicly traded companies with supply chain reliance on and other entanglements with entities organized under the laws of, operating in, or otherwise engaged with the People's Republic of China….

None of the material risk presented by this precarious situation is currently conveyed to U.S. investors, whether institutional or individual. The Commission's mandate is to assure that such risks are required to be communicated, in order to protect the integrity of U.S. capital markets.

In addition to submitting the SEC petition, FEP is also pressing companies directly, sending individual letters to major banks and utilities seeking answers about their exposure to China-made equipment in the U.S. electric grid. The effort follows President Donald Trump's declaration of a national emergency over foreign threats to the nation's bulk-power system.

"Declaring a national emergency is a warning that cannot be ignored by corporate America," says FEP Executive Director Steve Milloy. "Banks and utilities need to know exactly where China-made equipment enters the U.S. power grid and what they are doing to address the risks before a potential vulnerability becomes an actual crisis."

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