Governor Abbott Directs State Agencies To Divest Portfolios From China
Governor Greg Abbott today sent a letter to Texas state agencies directing them to divest from risky investments originating from China. The Governor ordered Texas state agencies to protect Texans from exposure to the Chinese Communist Party (CCP) by fully divesting from China as soon as possible.
“Security of Texas and Texans is of utmost importance,” reads the letter. “That includes the financial security of Texas state investments. Threats to that security can come from foreign adversaries, including the Chinese Communist Party (CCP), whose belligerent actions across the Southeastern Pacific region and the world have increased instability and financial risk to the State holding investments in China. Therefore, all investments of state funds in China must be evaluated and immediately addressed. To further this goal, I direct Texas investing entities that you are prohibited from making any new investments of state funds in China. To the extent you have any current investments in China, you are required to divest at the first available opportunity. Texas will defend and safeguard itself and our public treasury from any potential threat, including those posed by the CCP.”
Last year, Governor Abbott with three other Governors encouraged Vanguard to create emerging market funds isolating the investments from risks posed by the CCP.
Earlier this week, Governor Abbott issued executive orders to protect Texans from the coordinated harassment and coercion by the CCP, harden state government from being accessed by hostile foreign nations that attempt to infiltrate Texas, and protect Texas’ critical infrastructure from threats posed by the People's Republic of China (PRC) and the CCP. The Federal Bureau of Investigation Houston also put out a warning to Texans this week that the PRC may be targeting and harassing Chinese dissidents who speak out against the CCP in Texas.
Read the Governor's letter to Texas state agencies here.