A coalition of 18 state financial officers, including treasurers, is urging public pension fund managers to divest from China-based investments due to concerns over the Chinese Communist Party’s (CCP) control over businesses and the potential risks associated with their investments. The letter, sent to fiduciaries across 15 states, highlights issues such as CCP interference in financial markets, the opaque nature of Variable Interest Entities (VIEs), and geopolitical tensions, particularly the potential for a Chinese invasion of Taiwan. The call for divestment echoes concerns raised by the House Select Committee on the Strategic Competition between the U.S. and the CCP, which previously detailed how asset managers have invested billions of dollars in Chinese companies flagged by the U.S. government.
