U.S. capital markets are beginning to experience the effects of the passage of the Holding Foreign Companies Accountable Act (HFCAA). Amid continuing tensions between the United States and China, then-President Trump signed the HFCAA into law on December 18, 2020. The HFCAA was introduced in the United States Senate on March 28, 2019 by Senator John Kennedy (R-LA) and Senator Chris Van Hollen (D-MD). The HFCAA passed the Senate by unanimous consent on May 20, 2020. That same day, Representative Bradley Sherman (D-CA) introduced companion legislation in the United States House of Representatives. Subsequently, the HFCAA unanimously passed the House, without amendment, on December 2, 2020.
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