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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.

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.

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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.

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“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.

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Fox Business’ Eric Revell contributed to this report. 

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Can You Identify These Regional Election Stickers?

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Can You Identify These Regional Election Stickers?

Can creative stickers help get voters to the polls? What if they featured a spider-like creature or a werewolf ripping its shirt off? Election officials across the United States are hoping so.

Traditional red, white and blue “I Voted” stickers are being replaced by designs that range from tradition-oriented to totally offbeat. Some states commission artists to come up with new stickers, while others open it up to competitions. But they all cultivate regional pride.

Sarah Copeland Hanzas, the secretary of state for Vermont, said hosting a sticker design competition helped voters feel included.

“It just became clear over the years that so many people either don’t know how the system works, so they don’t want to engage and they just see that as something that other people do, or they feel disenfranchised,” she said. “We wanted to make it a focus of ours to break through that, and in particular, breaking through that with young people.”

Test your knowledge of stickers across the country.

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Many of these stickers feature scenes, landmarks and animals for which the place is known.

Another common approach is to use the state’s outline in its sticker design.

To preserve some of the challenge, we’ll hide these shapes and offer clues within the questions.

Some sticker designs don’t rock the boat.

If not for their text, it might be hard to tell these creative designs have anything to do with the voting process.

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In two L.A. City Council races, police 'abolition' is a wedge issue

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In two L.A. City Council races, police 'abolition' is a wedge issue

Long before she uttered the words “F— the police,” Los Angeles City Council candidate Ysabel Jurado made clear she was not happy with the city’s approach to public safety.

In a candidate questionnaire last year, Jurado promised to move money out of the LAPD and into other programs. She said police should be removed from K-12 schools. And she described herself as an “abolitionist” — someone who favors the “abolition of police and the prison industrial complex.”

“I believe that we keep ourselves safe,” she wrote in the 20-page questionnaire she provided to the Democratic Socialists of America — now one of her most crucial supporters.

Tuesday’s election will determine whether Jurado and her allies can push City Hall further left on public safety by expanding the bloc of council members who want to rein in police spending and reallocate the savings.

Jurado, a tenant rights attorney, is looking to unseat Councilmember Kevin de León in an Eastside district. Another DSA-backed candidate, business owner Jillian Burgos, is gunning for a seat in the San Fernando Valley.

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In both contests, police abolition — and law enforcement spending overall — has emerged as a political fault line, particularly for voters worried about crime and disorder.

Jurado, through a spokesperson, has described abolition as an aspirational goal, one that would take many years and many steps. De León says Jurado’s words should be taken literally, and seriously, by voters in his district, which stretches from downtown to El Sereno and Eagle Rock.

Los Angeles City Councilman Kevin de León, pictured in 2023, has sent campaign mailers assailing his opponent’s stances on public safety.

(Christina House/Los Angeles Times)

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De León, who has highlighted the issue in campaign mailers, calls Jurado’s approach to public safety “elitist and irresponsible,” saying low-income neighborhoods would suffer the most. He ramped up his attacks over the last week after Jurado told a group of college students, “What’s the rap verse? F— the police, that’s how I see ‘em,” in response to a question about abolishing the police.

“We need the police to keep our communities safe. It’s just that simple,” De León said. “Every nation in the world, including the most progressive nations — Scandinavian countries, Sweden, Finland, Norway — they have police.”

Jurado has disputed the idea that she would defund the LAPD, telling audiences she still wants officers responding to violent crime. At the same time, she has argued that — with 1 in 4 city dollars going to the Los Angeles Police Department — too much is being spent on police.

“The safest cities in America invest in recreation and parks, libraries and our youth, but we’re not doing that,” she said.

Three of the council’s 15 members voted against Mayor Karen Bass’ budget this year, in large part because of their objections to police spending. Jurado and Burgos, if elected, could add two more votes to that bloc.

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De León and former state Assemblymember Adrin Nazarian, who is facing off against Burgos, support Bass’ push to hire more police and return the department to 9,500 officers. Both are in favor of the mayor’s decision to give a package of raises and bonuses to police, which is expected to add $400 million to the city’s yearly budget by 2027.

Jurado opposes both efforts. So does Burgos, an optician and part owner of a murder mystery theater company. On the day the council approved the police raises, Burgos accused city leaders of choosing “militarization” over humanity, saying the money should have gone to housing and community services instead.

“Crime is down overall,” she said in an interview. “I think we can invest in other solutions.”

Like Jurado, Burgos identified herself as an abolitionist in her DSA questionnaire. Like Jurado, she told the DSA she would remove police officers from K-12 schools. Both said police unions should not be part of the Los Angeles County Federation of Labor, which represents about 300 union groups and is a major fixture in city politics.

A woman smiles outdoors.

Los Angeles City Council candidate Jillian Burgos, pictured in January, has come out against the mayor’s effort to hire more police and return the LAPD to 9,500 officers.

(Michael Blackshire/Los Angeles Times)

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The DSA’s L.A. chapter has become a powerful political force, pushing city leaders for stronger tenant protections, higher wages and lower law enforcement spending. Over the last four years, the group has worked to successfully unseat three City Hall incumbents.

It has been a key supporter of Burgos, sending 167 people to knock on doors for her, according to a spokesperson for the L.A. chapter. Nearly 330 DSA volunteers have done the same for Jurado, the spokesperson said.

The Los Angeles Police Protective League, which represents rank-and-file officers, has sought to counter those efforts, sending campaign mailers that call Burgos’ public safety platform “dangerous.” The union has allocated $445,000 for canvassers, digital ads and other efforts to defeat Jurado and reelect De León.

“Ms. Jurado told [voters] loud and clear that if she wins, it will be ‘F-the police,’ and that means fewer officers patrolling neighborhoods and enforcing the law,” Police Protective League President Craig Lally said in a statement.

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The two council contests come as LAPD sworn staffing has shrunk about 12% over the last five years, to about 8,800 officers — the lowest point since 2002. Bass and the council have attempted to reverse the slide by giving raises, increasing starting pay and offering retention bonuses.

Those measures are expected to take a big bite out of the city budget, adding an estimated $1 billion in costs over a four-year period. With city leaders struggling to balance the books, many other city agencies have had to make cuts, leaving positions vacant or eliminating them entirely.

Even with a smaller LAPD, homicides in the city have declined 29% this year compared with the same period in 2022. The number of gunshot victims dropped 27%, according to the LAPD.

Jennifer Macias, who co-chairs the DSA’s L.A. chapter, said her organization added the abolition question to its candidate surveys after George Floyd was murdered by police in Minneapolis. She called the question an important part of the endorsement process — and “integral” to the group’s values.

Macias, who lives in Jefferson Park, said the city needs a way to respond to emergencies without involving police who are “systemically violent.” She described police abolition — the idea of getting to zero officers — as “a North Star goal” that will be achieved only over time, after other programs are put in place.

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“Not having the police doesn’t mean that we’re not responding to harm,” she said.

Burgos said that, for her, abolition means moving away from “reactive” law enforcement responses and toward expanded social services, such as job training, job placements and mental health care.

“All of that is community care, and that’s what I am for,” the North Hollywood resident said.

Nazarian, like the three other candidates, said he wants to expand the city’s network of unarmed responders to assist people experiencing nonviolent mental health crises. At the same time, he slammed the idea of police abolition, saying there’s “nothing progressive” about it.

“The rich and the upper class will always find a way. They will hire their own security,” the North Hollywood resident said. “What will be left is the majority of the population — the middle class and the poorer working class — who will be left to fend for themselves.”

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A man next to a street.

Los Angeles City Council Candidate Adrin Nazarian says there’s “nothing progressive” about the concept of police abolition.

(Michael Blackshire/Los Angeles Times)

Nazarian, whose family fled Iran when he was 8, said there will always be people who seek to victimize others, and therefore, a need for police.

Jurado, for her part, said she has never used the phrase “defund” while referring to the LAPD. At the Cal State L.A. event where she said “F— the police,” she also argued that police should be focusing on gangs, violent crime and “the drugs that are invading our communities.”

In an interview, Jurado said she does not yet know whether she would routinely vote against LAPD spending proposals that come before the council, as one of her closest allies, Councilmember Eunisses Hernandez, has done.

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“We check boxes” on questionnaires, Jurado said. “But at the end of the day, we use our best judgment.”

Over the last week, Jurado has dismissed the criticism of her “F— the police” remark, saying it was “just a lyric” from a rap song. She called the attack ads from the police union “noise.”

A woman stands in the middle of a street.

Los Angeles City Council candidate Ysabel Jurado said the attacks on her campaign from the police union are just “noise.”

(Michael Blackshire/Los Angeles Times)

If recent L.A. elections are any guide, the Highland Park resident has reason to be confident.

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Hernandez, who also represents part of the Eastside, defeated two-term incumbent Gil Cedillo in 2022 while identifying herself as an abolitionist. She scored that victory even after the police union sent mailers warning that her policies would result in the release of rapists and violent criminals.

Councilmember Hugo Soto-Martínez, while running in 2022, also identified himself as an abolitionist in his DSA questionnaire. He defeated the incumbent, Mitch O’Farrell, by a wide margin.

“Abolition gets thrown out as a scare tactic and a way to divide people,” he said. “But many abolitionists believe that the way we root out crime, the way we stop crime, is by putting resources into families and into communities, and that will eventually lead to a society where we don’t need police officers. It’s very utopian when you think about it.”

Soto-Martínez pointed out that De León courted the Democratic Socialists in 2018, when he was a state lawmaker seeking to unseat U.S. Sen. Dianne Feinstein. Although De León’s DSA candidate questionnaire did not include a question about police abolition, he came out in favor of abolishing Immigration and Customs Enforcement, the federal agency that polices the border.

These days, De León is slamming Jurado as the “handpicked” DSA candidate, calling her public safety views “too dangerous” for L.A. That shows that De León is “a hypocrite,” Soto-Martínez said.

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De León, in response, said this year’s DSA is “not the same as the Bernie Sanders DSA in 2016 or 2018.” Abolition of police, he said, is just one area where the group has become too extreme.

De León, who lives in Eagle Rock, has been at odds with Hernandez and Soto-Martínez over copper wire theft, which has left many streets — including the newly built 6th Street Bridge — in darkness. Hernandez and Soto-Martínez cast the only votes against De León’s plan to create a task force to combat such thefts.

Last summer, De León credited the task force with making 82 arrests and recovering 2,000 pounds of copper.

De León’s approach to public safety has resonated with at least some constituents. Last week, dozens gathered in Highland Park to denounce Jurado’s use of the F-word and voice support for the LAPD.

“In this crazy world that we live in, we need to fund the police, not you-know-what the police,” El Sereno resident Eddie Santillan said.

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Times staff writer Libor Jany contributed to this report.

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Harris ripped for 'word salad' after heckler interruption during campaign speech: 'The gibberish never ends'

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Harris ripped for 'word salad' after heckler interruption during campaign speech: 'The gibberish never ends'

Vice President Kamala Harris was mocked by the Trump campaign and other conservatives online for a “word salad” after a heckler interrupted her speech in Nevada on Thursday night.

“You know what?” the vice president said in Reno, Nevada after shouting could be heard from the audience as she spoke. “Let me say something about this.”

“We are here because we are fighting for a democracy. Fighting for a democracy. And understand the difference here, understand the difference here, moving forward, moving forward, understand the difference here.”

“What we are looking at is a difference in this election, let’s move forward and see where we are because on the issue, for example, freedom of choice,” Harris continued as the heckling went on. 

TRUMP SUES CBS NEWS FOR $10 BILLION ALLEGING ‘DECEPTIVE DOCTORING’ OF HARRIS’ ’60 MINUTES’ INTERVIEW

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RENO, NEVADA – OCTOBER 31: Democratic presidential nominee, U.S. Vice President Kamala Harris, speaks during a campaign rally at the Reno Events Center on October 31, 2024 in Reno, Nevada. With five days to go until election day, Vice President Kamala Harris is campaigning in Arizona and Nevada. (Photo by Justin Sullivan/Getty Images)

“That’s OK,” Harris said as the voices of her supporters drowned out the heckling. “That’s alright. That’s OK.”

You know what? Democracy can be complicated, sometimes it’s okay. We’re fighting for the right for people to be heard and not jailed because they speak their mind. We know what’s at stake.”

Harris quickly drew criticism from conservative critics on social media. 

MARK CUBAN TRIES TO ‘CLARIFY’ AFTER COMMENT ON ‘THE VIEW’ WIDELY SEEN AS INSULT TOWARD PRO-TRUMP WOMEN

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Kamala Harris speaking at rally

Democratic presidential nominee, U.S. Vice President Kamala Harris speaks during a campaign rally on October 28, 2024 (Brandon Bell/Getty Images))

“Kamala spirals after ANOTHER speech is interrupted by protesters,” an account run by the Trump campaign posted on X.

“CRACKS UNDER PRESSURE,” Trump adviser Stephen Miller posted on X. “CHOKES EVERY TIME. Not a quality you want in the commander-in-chief.”

“She is the word salad Queen!” Author Tom Young posted on X.

Trump at a rally

Republican presidential nominee former President Donald Trump speaks at a campaign rally at the Resch Center, Wednesday, Oct. 30, 2024, in Green Bay, Wis. (AP Photo/Alex Brandon) (AP Photo/Alex Brandon)

“The gibberish never ends,” Fox News contributor Tammy Bruce posted on X. 

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Fox News Digital reached out to the Harris campaign for comment but did not immediately receive a response. “

Nevada, I am here asking for your vote,” Harris told the crowd. “I am asking for your vote. And here is my pledge to you, and I got your back, as president, I pledge to you to seek common ground and common sense solutions to the challenges you face. I am not looking to score political points.”

“I am looking to make progress. And I pledge to listen to experts, to listen to those who will be impacted by the decisions I make and to listen to people who disagree with me. Because that’s what real leaders do.”

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