Connect with us

Politics

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

Published

on

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

Join Fox News for access to this content

Plus special access to select articles and other premium content with your account – free of charge.

By entering your email and pushing continue, you are agreeing to Fox News’ Terms of Use and Privacy Policy, which includes our Notice of Financial Incentive.

Please enter a valid email address.

Having trouble? Click here.

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.”

Advertisement

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.

ELON MUSK WANTS PEOPLE TO SUBMIT THEIR MEDICAL SCANS TO GROK, HIS AI CHATBOT

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.

Advertisement

CHINA WILL DOUBLE ITS NUCLEAR ARSENAL TO OVER 1,000 WARHEADS BY 2030, ACCORDING TO US INTELLIGENCE

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. 

MILLIONS OF VOTERS HAVE ALREADY CAST BALLOTS FOR NOV. 5 ELECTION

Advertisement

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.

Advertisement

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. 

Politics

Video: Protests Against ICE in Minneapolis Continue Into Friday Night

Published

on

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.

Advertisement
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

Continue Reading

Politics

Trump says Venezuela has begun releasing political prisoners ‘in a BIG WAY’

Published

on

Trump says Venezuela has begun releasing political prisoners ‘in a BIG WAY’

NEWYou can now listen to Fox News articles!

President Donald Trump said Saturday that Venezuela has begun releasing political prisoners “in a BIG WAY,” crediting U.S. intervention for the move following last week’s American military operation in the country.

“Venezuela has started the process, in a BIG WAY, of releasing their political prisoners,” Trump wrote on Truth Social. “Thank you! I hope those prisoners will remember how lucky they got that the USA came along and did what had to be done.”

He added a warning directed at those being released: “I HOPE THEY NEVER FORGET! If they do, it will not be good for them.”

The president’s comments come one week after the United States launched Operation Absolute Resolve, a strike on Venezuela and capture of dictator Nicolás Maduro as well as his wife Cilia Flores, transporting them to the United States to face federal drug trafficking charges.

Advertisement

US WARNS AMERICANS TO LEAVE VENEZUELA IMMEDIATELY AS ARMED MILITIAS SET UP ROADBLOCKS

Government supporters in Venezuela rally in Caracas.  (AP Photo)

Following the military operation, Trump said the U.S. intends to temporarily oversee Venezuela’s transition of power, asserting American involvement “until such time as a safe, proper and judicious transition” can take place and warning that U.S. forces stand ready to escalate if necessary.

At least 18 political prisoners were reported freed as of Saturday and there is no comprehensive public list of all expected releases, Reuters reported.

Maduro and Flores were transported to New York after their capture to face charges in U.S. federal court. The Pentagon has said that Operation Absolute Resolve involved more than 150 aircraft and months of planning.

Advertisement

TRUMP ADMIN SAYS MADURO CAPTURE REINFORCES ALIEN ENEMIES ACT REMOVALS

A demonstrator holding a Venezuelan flag sprays graffiti during a march in Mexico City on Santurday. (Alfredo Estrella / AFP via Getty Images)

Trump has said the U.S. intends to remain actively involved in Venezuela’s security, political transition and reconstruction of its oil infrastructure.

The White House did not immediately respond to Fox News Digital’s request for comment.

President Donald Trump said Saturday that Venezuela has begun releasing political prisoners. (Mark Schiefelbein/AP Photo)

Advertisement

CLICK HERE TO DOWNLOAD THE FOX NEWS APP

Fox News Digital’s Morgan Phillips and Greg Norman-Diamond contributed to this reporting.

Advertisement
Continue Reading

Politics

Secretary of Defense Pete Hegseth tours Long Beach rocket factory

Published

on

Secretary of Defense Pete Hegseth tours Long Beach rocket factory

Secretary of Defense Pete Hegseth, who is taking a tour of U.S. defense contractors, on Friday visited a Long Beach rocket maker, where he told workers they are key to President Trump’s vision of military supremacy.

Hegseth stopped by a manufacturing plant operated by Rocket Lab, an emerging company that builds satellites and provides small-satellite launch services for commercial and government customers.

Last month, the company was awarded an $805-million military contract, its largest to date, to build satellites for a network being developed for communications and detection of new threats, such as hypersonic missles.

“This company, you right here, are front and center, as part of ensuring that we build an arsenal of freedom that America needs,” Hegseth told several hundred cheering workers. “The future of the battlefield starts right here with dominance of space.”

Advertisement

Founded in 2006 in New Zealand, the company makes a small rocket called Electron — which lay on its side near Hegseth — and is developing a larger one called Neutron. It moved to the U.S. a decade ago and opened its Long Beach headquaters in 2020.

Rocket Lab is among a new wave of companies that have revitalized Southern California’s aerospace and defense industry, which shed hundreds of thousands of jobs in the 1990s after the end of the Cold War. Large defense contractors such as Northrop Grumman and Lockheed Martin moved their headquarters to the East Coast.

Many of the new companies were founded by former employees of SpaceX, which was started by Elon Musk in 2002 and was based in the South Bay before moving to Texas in 2024. However, it retains major operations in Hawthorne.

Hegseth kicked off his tour Monday with a visit to a Newport News, Va., shipyard. The tour is described as “a call to action to revitalize America’s manufacturing might and re-energize the nation’s workforce.”

Long Beach Mayor Rex Richardson, a Democrat who said he was not told of the event, said Hegseth’s visit shows how the city has flourished despite such setbacks as the closure of Boeing’s C-17 Globemaster III transport plant.

Advertisement

“Rocket Lab has really been a superstar in terms of our fast, growing and emerging space economy in Long Beach,” Richardson said. “This emergence of space is really the next stage of almost a century of innovation that’s really taking place here.”

Prior stops in the region included visits to Divergent, an advanced manufacturing company in aerospace and other industries, and Castelion, a hypersonic missile startup founded by former SpaceX employees. Both are based in Torrance.

The tour follows an overhaul of the Department of Defense’s procurement policy Hegseth announced in November. The policy seeks to speed up weapons development and acquisition by first finding capabilities in the commercial market before the government attempts to develop new systems.

Trump also issued an executive order Wednesday that aims to limit shareholder profits of defense contractors that do not meet production and budget goals by restricting stock buybacks and dividends.

Hegseth told the workers that the administration is trying to prod old-line defense contractors to be more innovative and spend more on development — touting Rocket Lab as the kind of company that will succeed, adding it had one of the “coolest factory floors” he had ever seen.

Advertisement

“I just want the best, and I want to ensure that the competition that exists is fair,” he said.

Hegseth’s visit comes as Trump has flexed the nation’s military muscles with the Jan. 3 abduction of Venezuelan President Nicolás Maduro, who is now facing drug trafficking charges to which he has pleaded not guilty.

Hegseth in his speech cited Maduro’s capture as an example of the country’s newfound “deterrence in action.” Though Trump’s allies supported the action, legal experts and other critics have argued that the operation violated international and U.S. law.

Trump this week said he wants to radically boost U.S. military spending to $1.5 trillion in 2027 from $900 billion this year so he can build the “Dream Military.”

Hegseth told the workers it would be a “historic investment” that would ensure the U.S. is never challenged militarily.

Advertisement

Trump also posted on social media this week that executive salaries of defense companies should be capped at $5 million unless they speed up development and production of advanced weapons — in a dig at existing prime contractors.

However, the text of his Wednesday order caps salaries at current levels and ties future executive incentive compensation to delivery and production metrics.

Anduril Industries in Costa Mesa is one of the leading new defense companies in Southern California. The privately held maker of autonomous weapons systems closed a $2.5-billion funding round last year.

Founder Palmer Luckey told Bloomberg News he supported Trump’s moves to limit executive compensation in the defense sector, saying, “I pay myself $100,000 a year.” However, Luckey has a stake in Anduril, last valued by investors at $30.5 billion.

Peter Beck, the founder and chief executive of Rocket Lab, took a base salary of $575,000 in 2024 but with bonus and stock awards his total compensation reached $20.1 million, according to a securities filing. He also has a stake in the company, which has a market capitalization of about $45 billion.

Advertisement

Beck introduced Hegseth saying he was seeking to “reinvigorate the national industrial base and create a leaner, more effective Department of War, one that goes faster and leans on commercial companies just like ours.”

Rocket Lab boasts that its Electron rocket, which first launched in 2017, is the world’s leading small rocket and the second most frequently launched U.S. rocket behind SpaceX.

It has carried payloads for NASA, the U.S. Space Force and the National Reconnaissance Office, aside from commercial customers.

The company employs 2,500 people across facilities in New Zealand, Canada and the U.S., including in Virginia, Colorado and Mississippi.

Rocket Lab shares closed at $84.84 on Friday, up 2%.

Advertisement
Continue Reading

Trending