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

CHINA MISSILES

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

The national flags of the United States and China flutter at the Fairmont Peace Hotel on April 25, 2024, in Shanghai, China.

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.

Advertisement

“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.

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.

Advertisement

Fox Business’ Eric Revell contributed to this report. 

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Politics

GOP congressman charges Biden administration's foreign policy 'left the world in a worse off place'

Published

on

GOP congressman charges Biden administration's foreign policy 'left the world in a worse off place'

EXCLUSIVE: Republican Rep. Mike Lawler of New York, a member of the House Foreign Affairs Committee, is charging that overseas conflicts escalated under the Biden administration.

Secretary of State Anthony Blinken testified before the committee in December after a report on the administration’s withdrawal from Afghanistan, where he was pressed to “take responsibility” for the widespread conflicts that erupted across the globe following the deadly event.

Speaking with Fox News Digital on Monday, Lawler delved into the report that claimed the Biden administration “has left the world in a worse off place than it inherited it” — beginning with the withdrawal from Afghanistan.

“The report on the disastrous withdrawal from Afghanistan is his legacy and that of the Biden administration, because in my estimation, it’s set about a series of events around the globe that have left us in the most precarious place since World War Two, starting with that disastrous withdrawal in Afghanistan that resulted in the death of 13 U.S. service members,” Lawler told Fox News Digital in an exclusive interview.

NEW REPORT WARNS OF GROWING NATIONAL SECURITY THREAT TO U.S. AS CHINA BUILDS AI: ‘SIGNIFICANT AND CONCERNING’

Advertisement

Representative Mike Lawler, a Republican from New York, during a news conference at the US Capitol in Washington, DC, US, on Wednesday, March 6, 2024. (Tierney L. Cross)

The congressman detailed several tragic events under the Biden administration that followed the Afghanistan withdrawal, such as the Russian invasion of Ukraine, the Oct. 7 terrorist attack in Israel, threats in the Indo-Pacific from China, and the “illicit” oil trade between China and Iran that Lawler says is “funding terrorism.”

EXPERTS WARN SYRIAN REBEL VICTORY POSES ‘WILDLY COMPLEX’ NATIONAL SECURITY THREAT: ‘WHO KNOWS WHAT’S NEXT?’

“This administration has left the world in a worse off place than it inherited it. And that, in my view, is the legacy of the Biden-Harris administration and that of Secretary Blinken,” the New York Republican said.

Lawler added that while national security has appeared in the most “precarious” position since WW2, foreign policy will soon look different under the incoming Trump administration.

Advertisement
photo collage of 13 service members killed at Abbey Gate, Kabul, on display on Capitol HIll

A sign displaying photos and names of the 13 service members killed in a terrorist attack at Abbey Gate outside Kabul’s Hamid Karzai International Airport is seen during a news conference at the U.S. Capitol on Sept. 9, 2024 in Washington, DC.  (Kent Nishimura)

“I think President Trump obviously had four years in which there was greater peace and prosperity around the globe. And the difference between Biden and Trump is that Biden is unable to stop conflicts. Trump is willing to act,” Lawler told Fox. “When you are strong, when your adversaries acknowledge and understand that you are willing to act and strike. They think twice about it.”

Lawler also said that he thinks “President Trump will be a very strong leader when it comes to foreign policy, when it comes to bringing these conflicts to an end.”

Trump closeup shot at podium

President-elect Donald Trump speaks at AmericaFest, Sunday, Dec. 22, 2024, in Phoenix. (AP Photo/Rick Scuteri)

Rep. Brian Mast, R-Fla., will serve as chairman of the Foreign Affairs Committee next Congress, where Lawler says there will be “a lot of the focus is going to be on reauthorizing the State Department operations,” such as how the agency programs operate and how its funds are used.

“I think, obviously, with President Trump coming in, the foreign policy of the United States is going to change,” Lawler said of the incoming administration. “It is going to be much stronger, much more unforgiving on our adversaries. And certainly seek to bring these conflicts to an end.”

Advertisement

Continue Reading

Politics

“Most people my age just kind of scribble.” Signatures were a sticking point for young California voters this year

Published

on

“Most people my age just kind of scribble.” Signatures were a sticking point for young California voters this year

More than a month after voting by mail in the presidential election, South Los Angeles resident Taylor Johnson learned that his vote had not been counted because election workers had taken issue with the way he signed his name on the ballot envelope.

The elections office told Johnson that his ballot signature didn’t match another signature they had on file. Johnson wasn’t sure which signature that was, but he knew it would have looked different: After printing his name for years, he perfected his cursive signature only a few months ago.

“Most people my age just kind of scribble,” said Johnson, 20, who works as an administrative assistant at a medical imaging clinic.

For young Americans who rarely sign anything beyond a paper receipt or a coffee shop iPad, a written signature just doesn’t mean much anymore — except when voting by mail, when a signature is critical to determining whether a mail ballot is counted.

Advertisement

In California, voters younger than 25 made up 10% of the November electorate, but had nearly 3 in 10 of the ballots set aside for signature issues, according to an analysis by the voter data firm Political Data Inc. More than half of the state’s ballots with signature issues were from voters younger than 35.

California generally verifies the identities of mail voters through their signatures. As many as three elections workers scrutinize each ballot envelope to ensure the signature matches the voter’s registration paperwork or driver’s license, and set aside envelopes with missing or mismatched signatures.

Election officials are required to notify those voters and give them an opportunity to fix the error.

In the November election, nearly 200,000 ballots were flagged for signature issues across California’s 58 counties. Nearly 6 in 10 were eventually counted through a process known as “curing,” in which a voter can fill out a form to attest that the flawed ballot was theirs, while more than 83,000 were not counted.

In a survey of voters whose ballots were flagged because of signature problems, 40% of respondents said their signature looked different than it used to, another 40% said they used a sloppy, incomplete or casual signature, “like one I use signing a restaurant bill,” and 12% said they forgot to sign the envelope entirely.

Advertisement

“When you’re dealing with a state with 22 million voters, and 16 million sending their ballots in with signatures, there’s a multitude of ways that some little nonsensical thing can create a problem,” said Paul Mitchell, a vice president at PDI who conducted the survey.

Orange County registrar of voters Bob Page recommended that voters look at the signature on their driver’s license before signing their ballots and should consider sending in a new registration form if their signature has changed. He said Orange County plans to send forms to 12,000 voters in hopes of getting a new signature on file.

“We know that signatures change over time,” Page said. “And we know that the way people sign at the little pad with their finger at the DMV is not how they really sign their names.”

Mitchell’s analysis found that in the state’s six most competitive congressional races, 85% of Republicans and Democrats whose ballots were flagged for signature issues were able to cure their ballots and have their votes counted, a 25-point jump over the statewide averages.

The Republican and Democratic parties mounted armies of volunteers and staff members to go door to door in the most competitive U.S. House of Representatives districts.

Advertisement

In the Central Valley, where Democrat Adam Gray narrowly bested GOP Rep. John Duarte, the number of ballots cured by Democrats and Republicans far outstripped the 187-vote margin of the race.

Campaign volunteers and workers went door to door in the districts, trying to talk to voters in person and explaining how to complete the ballot paperwork, in some cases helping them navigate scanning in, printing out and returning the forms.

Mitchell found that voters with no party preference had a far lower rate of return than voters affiliated with the Republican and Democratic parties in competitive swing districts, suggesting that each party was focusing on their most loyal voters first.

In less competitive districts, voters were more on their own.

Cassidy Crotwell, 22, registered to vote during an economics class in her senior year at El Toro High School in Orange County. Everyone in the class registered on their phones, she said, and she didn’t sign anything.

Advertisement

Crotwell learned about the issue with her November ballot signature through a text message from the Orange County Registrar’s office. Republican Rep. Young Kim, who represents her Congressional district, easily won reelection, and neither party mounted a meaningful curing operation there; no other groups or campaigns contacted Crotwell, she said.

She assumed the elections office had a signature on file from when she got her driver’s license at age 16, but her signature is “a little more defined now,” she said — the result of a job in human resources where she signs a lot of paperwork. She didn’t end up fixing her ballot but plans to update her signature the next time she goes to the DMV.

Johnson, the South L.A. voter, did not fix his ballot, either. By the time he learned his vote hadn’t been counted, the presidential election had been over for weeks.

In the 2026 midterms, Johnson said, he’s going to vote in person — no signature required.

Advertisement
Continue Reading

Politics

Nebraska Gov. Jim Pillen hospitalized after he was bucked off a horse

Published

on

Nebraska Gov. Jim Pillen hospitalized after he was bucked off a horse

Nebraska’s Republican Gov. Jim Pillen was injured and transported to a hospital on Sunday after he was bucked off a horse.

Pillen, 68, is expected to be hospitalized for several days.

The first-term governor was riding horses with his family when he was thrown off a new horse and suffered injuries, according to the governor’s office.

ILLEGAL MIGRANTS IN NEBRASKA TOWN BRINGING ‘STRESS’ TO SCHOOLS, PUBLIC SAFETY

Nebraska Gov. Jim Pillen was injured on Sunday after he was bucked off a horse while riding with his family. (Kenneth Ferriera/Lincoln Journal Star via AP, File)

Advertisement

Pillen was rushed to Columbus Community Hospital in Columbus, Nebraska, before he was transported, out of an abundance of caution, to the University of Nebraska Medical Center in Omaha.

“The Governor is alert and is in continuous touch with his team,” Pillen’s office said.

DRONE MISHAP DURING ORLANDO HOLIDAY AERIAL SHOW SENDS CHILD TO HOSPITAL

Jim Pillen

Gov. Pillen is expected to be hospitalized for several days, though the severity of his injuries was not revealed. (AP Photo/Phelan M. Ebenhack, File)

Pillen’s office did not detail what injuries he suffered or the severity.

The GOP governor was elected in 2022, running in the gubernatorial election that year because former Gov. Pete Ricketts, also a Republican, was term-limited. 

Advertisement

Pillen then appointed Ricketts to the U.S. Senate to fill the seat vacated by former Republican Sen. Ben Sasse, who resigned in 2023 to become president of the University of Florida. Sasse has since stepped down as the university’s president.

Nebraska Gov. Jim Pillen

Pillen was elected as Nebraska’s governor in 2022. (Getty Images)

Pillen worked as a veterinarian and owned a livestock operation before he was elected as governor.

The Associated Press contributed to this report.

Advertisement
Continue Reading
Advertisement

Trending