U.S. lawmakers have urged the Securities and Exchange Commission (SEC) to limit Chinese companies' access to American capital markets due to potential national security threats and risks to market integrity. The bipartisan group of senators, led by Republican Senate Banking Committee chair Tim Scott and Democratic counterpart Elizabeth Warren, highlighted the use of variable interest entities (VIE), a type of "opaque corporate structure" by Chinese firms that bypass foreign ownership rules, which they believe could advance Chinese government interests while potentially undermining investor protection and market fairness. The SEC's Office of the Investor Advocate is focusing on risks from China-based VIE given the increasing exposure of U.S.-based investors.