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State treasurers push for divestment from China citing 'red flags' regarding CCP control

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State treasurers push for divestment from China citing 'red flags' regarding CCP control

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FIRST ON FOX: More than a dozen financial officers from 15 states are sending a letter to public pension fund fiduciaries, urging them to cut ties with China-based investments due to the Chinese Communist Party’s (CCP) control over some firms.

“Trustees of state funds have a duty to investigate investments and a duty to monitor investments and divest from imprudent investments, in order to ensure that those funds grow and are protected for future beneficiaries,” the letter from 18 state treasurers stated to public pension fund fiduciaries, who include anyone managing a public pension fund. “The time has come to divest from China.”

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The 18 financial officers – who include some state treasurers – are from Alabama, Arkansas, Alaska, Arizona, Indiana, Kansas, Louisiana, Mississippi, Missouri, Nebraska, North Carolina, Oklahoma, Pennsylvania, South Carolina and Wyoming.

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State financial officers urge public pension fund managers to divest from China. (Photo by Xie Huanchi/Xinhua via Getty Images / Photo by Wang Gang/VCG via Getty Images)

Financial officers cited a crackdown by the CCP on due diligence firms, which has compromised the reliability of financial audits. They also pointed to CCP interference in stock and bond markets, where efforts to hide foreign investment outflows have been observed.

The CCP maintains extensive control over Chinese companies, including the placement of military and intelligence personnel within them, the letter also states, and keeps the legality of Variable Interest Entities (VIEs) hidden.

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Spectators wave Chinese flags as military vehicles carrying DF-41 nuclear ballistic missiles roll during a parade to commemorate the 70th anniversary of the founding of Communist China in Beijing on Oct. 1, 2019.  (AP Photo/Mark Schiefelbein, File)

These VIEs are offshore shell companies that are often seen as illegal under Chinese law, yet they represent the most common form of investment available to U.S. investors in China. The SEC has warned that the CCP could abruptly declare VIEs illegal, creating significant risks for those who invest in them.

Geopolitical tensions, such as China’s potential invasion of Taiwan, are also of concern to investors. 

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The national flags of the United States and China flutter at the Fairmont Peace Hotel on April 25, 2024, in Shanghai, China. (Photo by Wang Gang/VCG via Getty Images)

Moreover, there has been a notable decline in foreign investment in China, leading to substantial outflows from its markets, the officers warned. This trend has prompted other fiduciaries, including those from states like Florida Indiana, and Missouri, to reconsider their China-based investments.

“Many fiduciaries, including state pension plans, failed to recognize similar warning signs before Russia’s invasion of Ukraine in 2022. As a result, states lost billions of dollars in value that was held in trust for retirees,” the letter states. “Pension boards should learn from the past, or they will be doomed to repeat it. As state financial officers, we urge public pension boards to analyze these issues, to identify China-based investments, and to divest from those investments in line with their fiduciary duties.”

 

The bipartisan House Select Committee on the Strategic Competition between the U.S. and the CCP released a report earlier this year detailing how asset managers and index providers facilitated investment of more than $6.5 billion to 63 companies in China that have been blacklisted or red-flagged by the U.S. government.

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Under current law, U.S. government agencies maintain a variety of blacklists and red-flag lists that serve a range of purposes, from barring exports to covered foreign firms and blocking imports due to connections with the use of forced labor, to restricting purchases of equipment that poses a national security risk and more. 

Most of these lists do not restrict U.S. asset managers or investors from investing in listed companies. One list that does restrict U.S. investment in listed firms, the Treasury Department’s NS-CMIC list, blocks investment only in listed firms but excludes those companies’ subsidiaries, allowing them to receive U.S. capital.

Fox Business’ Eric Revell contributed to this report. 

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Federal judge blocks Trump administration from enforcing mail-in voting rules in executive order

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Federal judge blocks Trump administration from enforcing mail-in voting rules in executive order

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A federal judge in Washington state on Friday blocked the Trump administration from enforcing key parts of an executive order that sought to change how states administer federal elections, ruling the president lacked authority to apply those provisions to Washington and Oregon.

U.S. District Judge John Chun held that several provisions of Executive Order 14248 violated the separation of powers and exceeded the president’s authority.

“As stated by the Supreme Court, although the Constitution vests the executive power in the President, ‘[i]n the framework of our Constitution, the President’s power to see that the laws are faithfully executed refutes the idea that he is to be a lawmaker,’” Chun wrote in his 75-page ruling.

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Residents drop mail-in ballots in an official ballot box outside the Tippecanoe branch library on Oct. 20, 2020 in Milwaukee, Wisconsin. (Scott Olson/Getty Images)

White House spokeswoman Abigail Jackson told Fox News Digital in a statement: “President Trump cares deeply about the integrity of our elections and his executive order takes lawful actions to ensure election security. This is not the final say on the matter and the Administration expects ultimate victory on the issue.”

Washington and Oregon filed a lawsuit in April contending the executive order signed by President Donald Trump in March violated the Constitution by attempting to set rules for how states conduct elections, including ballot counting, voter registration and voting equipment.

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“Today’s ruling is a huge victory for voters in Washington and Oregon, and for the rule of law,” Washington Attorney General Nick Brown said in response to the Jan. 9 ruling, according to The Associated Press. “The court enforced the long-standing constitutional rule that only States and Congress can regulate elections, not the Election Denier-in-Chief.”

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President Donald Trump speaks during a breakfast with Senate and House Republicans at the White House, Nov. 5, 2025. (AP Photo/Evan Vucci)

Executive Order 14248 directed federal agencies to require documentary proof of citizenship on federal voter registration forms and sought to require that absentee and mail-in ballots be received by Election Day in order to be counted.

The order also instructed the attorney general to take enforcement action against states that include such ballots in their final vote tallies if they arrive after that deadline.

“We oppose requirements that suppress eligible voters and will continue to advocate for inclusive and equitable access to registration while protecting the integrity of the process. The U.S. Constitution guarantees that all qualified voters have a constitutionally protected right to vote and to have their votes counted,” said Washington Secretary of State Steve Hobbs in a statement issued when the lawsuit was filed last year.

Voting booths are pictured on Election Day. (Paul Richards/AFP via Getty Images)

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“We will work with the Washington Attorney General’s Office to defend our constitutional authority and ensure Washington’s elections remain secure, fair, and accessible,” Hobbs added.

Chun noted in his ruling that Washington and Oregon do not certify election results on Election Day, a practice shared by every U.S. state and territory, which allows them to count mail-in ballots received after Election Day as long as the ballots were postmarked on or before that day and arrived before certification under state law.

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Deadly ICE shooting in Minnesota, affordability stir up California gubernatorial forums

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Deadly ICE shooting in Minnesota, affordability stir up California gubernatorial forums

Just days after the fatal shooting of a Minnesota woman by a federal immigration agent, the Trump administration’s immigration policy was a top focus of California gubernatorial candidates at two forums Saturday in Southern California.

The death of Renee Nicole Good, a 37-year-old mother of three, inflamed the nation’s deep political divide and led to widespread protests in Los Angeles and across the country about President Trump’s combative immigration policies.

Former Assembly Majority Leader Ian Calderon, speaking at a labor forum featuring Democratic candidates in Los Angeles, said that federal agents aren’t above the law.

“You come into our state and you break one of our f— … laws, you’re going to be criminally charged. That’s it,” he said.

Federal officials said the deadly shooting was an act of self-defense.

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Rep. Eric Swalwell (D-Dublin) noted that the president of the labor union that organized the candidate forum, David Huerta, was injured and arrested during the Trump administration’s raids on undocumented people in Los Angeles in June.

“Ms. Good should be alive today. David, that could have been you, the way they’re conducting themselves,” he said to Huerta, who was moderating the event. “You’re now lucky if all they did was drag you by the hair or throw you in an unmarked van, or deport a 6-year-old U.S. citizen battling stage 4 cancer.”

Roughly 40 miles south at a separate candidate forum featuring the top two Republicans in the race, GOP candidate and Riverside County Sheriff Chad Bianco said politicians who support so-called “sanctuary state” policies should be voted out of office.

“I wish it was the 1960s, ‘70s, and ‘80s — we’d take them behind the shed and beat the s— out of them,” he said.

“We’re in a church!” an audience member was heard yelling during a livestream of the event.

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California Democratic leaders in 2017 passed a landmark “sanctuary state” law that limits cooperation between local and federal immigration officers, a policy that was a reaction to the first Trump administration’s efforts to ramp up deportations.

After the campaign to replace termed-out Gov. Gavin Newsom was largely obscured last year by natural disasters, immigration raids and the special election to redraw California’s congressional districts, the 2026 governor’s race is now in the spotlight.

Eight Democratic candidates appeared at a forum sponsored by SEIU United Service Workers West, which represents more than 45,000 janitors, security officers, airport service employees and other workers in California.

Many of the union’s members are immigrants, and a number of the candidates referred to their familial roots as they addressed the audience of about 250 people — with an additional 8,000 watching online.

“As the son of immigrants, thank you for everything you did for your children, your grandchildren, to give them that chance,” former U.S. Health and Human Services Secretary Xavier Becerra told two airport workers who asked the candidates questions about cuts to state services for immigrants.

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“I will make sure you have the right to access the doctor you and your family need. I will make sure you have a right to have a home that will keep you safe and off the streets. I will make sure that I treat you the way I would treat my parents, because you worked hard the way they did.”

The Democrats broadly agreed on most of the pressing issues facing California, so they tried to differentiate themselves based on their records and their priorities.

Candidates for California’s next governor including Tony Thurmond, speaking at left, participate in the 2026 Gubernatorial Candidate Forum in Los Angeles on Saturday.

(Christina House/Los Angeles Times)

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“I firmly believe that your campaign says something about who you will be when you lead. The fact that I don’t take corporate contributions is a point of pride for me, but it’s also my chance to tell you something about who I am and who I will fight for,” said former Rep. Katie Porter.

“Look, we’ve had celebrity governors. We’ve had governors who are kids of other governors, and we’ve had governors who look hot with slicked back hair and barn jackets. You know what? We haven’t had a governor in a skirt. I think it’s just about … time.”

Former Los Angeles Mayor Antonio Villaraigosa, seated next to Porter, deadpanned, “If you vote for me, I’ll wear a skirt, I promise.”

Villaraigosa frequently spoke about his roots in the labor movement, including a farmworker boycott when he was 15 years old.

“I’ve been fighting for immigrants my entire life. I have fought for you the entire time I’ve been in public life,” he said. “I know [you] are doing the work, working in our buildings, working at the airport, working at the stadiums. I’ve talked to you. I’ve worked with you. I’ve fought for you my entire life. I’m not a Johnny-come-lately to this unit.”

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The candidates were not asked about a proposed ballot measure to tax the assets of billionaires that one of SEIU-USWW’s sister unions is trying to put on the November ballot. The controversial proposal has divided Democrats and prompted some of the state’s wealthiest residents to move out of the state, or at least threaten to do so.

But several of the candidates talked about closing tax loopholes and making sure the wealthy and businesses pay their fair share of taxes.

“We’re going to hold corporations and billionaires accountable. We’re going to be sure that we are returning power to the workers who know how to grow this economy,” said former state Controller Betty Yee.

State Supt. of Public Instruction Tony Thurmond highlighted his proposal to tax billionaires to fund affordable housing, healthcare and education.

“And then I’m going to give you, everyone in this room and California working people, a tax credit so you have more money in your pocket, a couple hundred dollars a month, every month, for the rising cost of gas and groceries,” he said.

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Billionaire hedge fund founder Tom Steyer said closing corporate tax loopholes would result in $15 billion to $20 billion in new annual state revenue that he would spend on education and healthcare programs.

“When we look at where we’re going, it’s not about caring, because everyone on this stage cares. It’s not about values. It’s about results,” he said, pointing to his backing of successful ballot measures to close a corporate tax loophole, raise tobacco taxes, and stop oil-industry-backed efforts to roll back environmental law.

“I have beaten these special interests, every single time with the SEIU,” he said. “We’ve done it. We’ve been winning. We need to keep fighting together. We need to keep winning together.”

Republican gubernatorial candidates were not invited to the labor gathering. But two of the state’s top GOP contenders were among the five candidates who appeared Saturday afternoon at a “Patriots for Freedom” gubernatorial forum at Calvary Chapel WestGrove in Orange County. Immigration, federal enforcement and homelessness were also among the hot topics there.

Days after Bianco met with unhoused people on Skid Row in downtown Los Angeles and Newsom touted a 9% decrease in the number of unsheltered homeless people during his final state of the state address, Bianco said that he would make it a “crime” for anyone to utter the word “homeless,” arguing that those on the street are suffering from drug- and alcohol-induced psychosis, not a lack of shelter.

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Former Fox News commentator Steve Hilton criticized the “attacks on our law enforcement offices, on our ICE agents who are doing their job protecting our country.”

“We are sick of it,” he said at the Garden Grove church while he also questioned the state’s decision to spend billions of dollars for healthcare for low-income undocumented individuals. State Democrats voted last year to halt the enrollment of additional undocumented adults in the state’s Medi-Cal program starting this year.

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Video: Protests Against ICE in Minneapolis Continue Into Friday Night

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Video: Protests Against ICE in Minneapolis Continue Into Friday Night

new video loaded: Protests Against ICE in Minneapolis Continue Into Friday Night

transcript

transcript

Protests Against ICE in Minneapolis Continue Into Friday Night

Hundreds of protesters marched through downtown Minneapolis on Friday night. They stopped at several hotels along the way to blast music, bang drums and play instruments to try to disrupt the sleep of immigration agents who might be staying there. Mayor Jacob Frey of Minneapolis said there were 29 arrests but that it was mostly a “peaceful protest.”

The vast majority of people have done this right. We are so deeply appreciative of them. But we have seen a few incidents last night. Those incidents are being reviewed, but we wanted to again give the overarching theme of what we’re seeing, which is peaceful protest. And we wanted to say when that doesn’t happen, of course, there are consequences. We are a safe city. We will not counter Donald Trump’s chaos with our own brand of chaos here. We in Minneapolis are going to do this right.

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Hundreds of protesters marched through downtown Minneapolis on Friday night. They stopped at several hotels along the way to blast music, bang drums and play instruments to try to disrupt the sleep of immigration agents who might be staying there. Mayor Jacob Frey of Minneapolis said there were 29 arrests but that it was mostly a “peaceful protest.”

By McKinnon de Kuyper

January 10, 2026

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