# Plain Language Summary: Reveal Risky Business in China Act

This bill would require publicly traded companies to tell investors about their business connections to China and other countries involved in military aggression. Specifically, companies would have to disclose in their regular financial reports whether they do business in China, work with entities controlled by the Chinese Communist Party, or operate in countries that have invaded other nations since March 2022 (like Russia). Companies would also need to reveal whether their supply chains rely on forced labor from Uyghurs, a Muslim ethnic group in China.

The goal is to give investors more information so they can make informed decisions about which companies to support with their money. Right now, investors might not know about these risky business ties because companies aren't required to report them. This bill treats these connections as important financial information, similar to how companies must disclose other risks that could affect their business. If you own stock in a company or have a retirement account with mutual funds, this would help you understand whether your money is going to companies with significant ties to China or other concerning countries.

The disclosure requirement would last for five years unless the Securities and Exchange Commission (the government agency that oversees stock markets) decides it's not in the public interest to continue it. The SEC would have to notify Congress if they decide to end the requirement early. This is a relatively temporary measure designed to give investors transparency during a period of heightened concern about U.S. business relationships with China and other aggressive nations.

Reveal Risky Business in China Act

Torres, Ritchie

Reveal Risky Business in China Act This bill requires an issuer of securities to regularly disclose whether the issuer does business (1) with or in China; (2) with any entity owned or operated by the Chinese Communist Party; or (3) with or in any country that, after March 24, 2022, invades a sovereign nation state or annexes sovereign territory. An issuer must also disclose whether its supply chain uses Uyghur forced labor.