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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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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. 

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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. 

Politics

House Democrats challenge new Homeland Security order limiting lawmaker visits to immigration facilities

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House Democrats challenge new Homeland Security order limiting lawmaker visits to immigration facilities

Twelve House Democrats who last year sued the Trump administration over a policy limiting congressional oversight of immigrant detention facilities returned to federal court Monday to challenge a second, new policy imposing further limits on such unannounced visits.

In December, those members of Congress won their lawsuit challenging a Department of Homeland Security policy from June that required a week’s notice from lawmakers before an oversight visit. Now they’re accusing Homeland Security of having “secretly reimposed” the requirement last week.

In a Jan. 8 memorandum, Homeland Security Secretary Kristi Noem wrote that “Facility visit requests must be made a minimum of seven (7) calendar days in advance. Any requests to shorten that time must be approved by me.”

The lawmakers who challenged the policies are led by Rep. Joe Neguse (D-Colo.) and include five members from California: Reps. Robert Garcia (D-Long Beach), Lou Correa (D-Santa Ana), Jimmy Gomez (D-Los Angeles), Raul Ruiz (D-Indio) and Norma Torres (D-Pomona).

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Last summer, as immigration raids spread through Los Angeles and other parts of Southern California, many Democrats including those named in the lawsuit were denied entry to local detention facilities. Before then, unannounced inspections had been a common, long-standing practice under congressional oversight powers.

“The duplicate notice policy is a transparent attempt by DHS to again subvert Congress’s will…and this Court’s stay of DHS’s oversight visit policy,” the plaintiffs wrote in a federal court motion Monday requesting an emergency hearing.

On Saturday, three days after Renee Nicole Good was shot and killed by an Immigration and Customs Enforcement agent, three members of Congress from Minnesota attempted to conduct an oversight visit of an ICE facility near Minneapolis. They were denied access.

Afterward, lawyers for Homeland Security notified the lawmakers and the court of the new policy, according to the court filing.

In a joint statement, the plaintiffs wrote that “rather than complying with the law, the Department of Homeland Security is attempting to get around this order by re-imposing the same unlawful policy.”

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“This is unacceptable,” they said. “Oversight is a core responsibility of Members of Congress, and a constitutional duty we do not take lightly. It is not something the executive branch can turn on or off at will.”

Congress has stipulated in yearly appropriations packages since 2020 that funds may not be used to prevent a member of Congress “from entering, for the purpose of conducting oversight, any facility operated by or for the Department of Homeland Security used to detain or otherwise house aliens.”

That language formed the basis of the decision last month by U.S. District Court Judge Jia Cobb in Washington, who found that lawmakers cannot be denied entry for visits “unless and until” the government could show that no appropriations money was being used to operate detention facilities.

In her policy memorandum, Noem wrote that funds from the One Big Beautiful Bill Act, which supplied roughly $170 billion toward immigration and border enforcement, are not subject to the limitations of the yearly appropriations law.

“ICE must ensure that this policy is implemented and enforced exclusively with money appropriated by OBBBA,” Noem said.

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Noem said the new policy is justified because unannounced visits pull ICE officers away from their normal duties. “Moreover, there is an increasing trend of replacing legitimate oversight activities with circus-like publicity stunts, all of which creates a chaotic environment with heightened emotions,” she wrote.

The lawmakers, in the court filing, argued it’s clear that the new policy violates the law.

“It is practically impossible that the development, promulgation, communication, and implementation of this policy has been, and will be, accomplished — as required — without using a single dollar of annually appropriated funds,” they wrote.

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Video: Minnesota and Illinois Sue Trump Administration Over ICE Deployments

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Video: Minnesota and Illinois Sue Trump Administration Over ICE Deployments

new video loaded: Minnesota and Illinois Sue Trump Administration Over ICE Deployments

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Minnesota and Illinois Sue Trump Administration Over ICE Deployments

Minnesota and Illinois filed federal lawsuits against the Trump administration, claiming that the deployment of immigration agents to the Minneapolis and Chicago areas violated states’ rights.

This is, in essence, a federal invasion of the Twin Cities and Minnesota, and it must stop. We ask the courts to end the D.H.S. unlawful behavior in our state. The intimidation, the threats, the violence. We ask the courts to end the tactics on our places of worship, our schools, our courts, our marketplaces, our hospitals and even funeral homes.

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Minnesota and Illinois filed federal lawsuits against the Trump administration, claiming that the deployment of immigration agents to the Minneapolis and Chicago areas violated states’ rights.

By Jackeline Luna

January 12, 2026

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Rep Ro Khanna demands prosecution of ICE agent in Minneapolis fatal shooting

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Rep Ro Khanna demands prosecution of ICE agent in Minneapolis fatal shooting

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Rep. Ro Khanna, D-Calif., called for the arrest and prosecution of the ICE agent who fatally shot Renee Good in a residential neighborhood of Minneapolis, Minnesota on Jan. 7.

Khanna also urged Congress to back his legislation with Rep. Jasmine Crockett, D-Texas, to require ICE agents to wear body cameras, display visible identification, stop wearing masks during operations and be subject to independent oversight.

In a post shared on X, the former Obama administration official said: “I am calling for the arrest and prosecution of the ICE agent that shot and killed Renee Good.”

“I am also calling on Congress to support my bill with @JasmineForUS to force ICE agents to wear body cameras, not wear masks, have visible identification, and ensure ICE has independent oversight,” Khanna added.

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MINNESOTA BUREAU OF CRIMINAL APPREHENSION DROPS OUT OF ICE-INVOLVED SHOOTING INVESTIGATION

An ICE agent shot and killed the 37-year-old Minneapolis woman during a federal enforcement operation in south Minneapolis. Federal officials have said agents were attempting to make arrests when the woman tried to use her vehicle as a weapon against officers, prompting an ICE agent to fire in self-defense.

Good’s death sparked widespread protests in Minneapolis and across the U.S. as demonstrators called for changes to federal immigration enforcement.

Renee Nicole Good moments before she was shot and killed by a federal agent in Minneapolis.  (Obtained by Fox News)

Local officials, including Minneapolis Mayor Jacob Frey and Minnesota Governor Tim Walz, criticized the federal account of the incident and rejected the claim that the officer acted in self-defense. Minnesota has since sued the Trump administration, claiming the immigration enforcement surge in the state is “unlawful” and “unprecedented.”

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“What we are seeing right now is not normal immigration enforcement,” Frey said. “The scale is wildly disproportionate, and it has nothing to do with keeping people safe.”

The Trump administration pushed back sharply against the lawsuit, with the Department of Homeland Security (DHS) accusing Minnesota leaders of undermining public safety and obstructing federal law enforcement.

MINNESOTA SUES TRUMP ADMIN OVER SWEEPING IMMIGRATION RAIDS IN TWIN CITIES

Federal officials, including DHS Secretary Kristi Noem, maintained that the agent fired in self-defense.

Renee Good’s crashed car after the shooting. (Stephen Maturen/Getty Images)

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Noem critisized Democrats on Sunday amid an Illinois lawmaker’s push to impeach her following the deadly shooting.

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“These law enforcement officers are trained to be in situations that are dangerous, and they rely on that training each and every day to make the right decisions,” Noem said during “Sunday Morning Futures.” 

Fox News Digital’s Greg Wehner contributed to this report.

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