Amid ongoing tensions between the United States and China, several states in the US are taking steps to purge Chinese companies from their investments. Missouri Treasurer Vivek Malek has been advocating for the Missouri State Employees' Retirement System to divest from Chinese companies. This move follows similar actions taken by Indiana and Florida, where restrictions have been placed on their public pension funds to prevent investments in certain Chinese companies. The goal of these divestment measures is to address concerns about national security risks and potential conflicts of interest. However, not all states have been successful in passing such legislation. Arizona vetoed a bill that aimed to target public investments in foreign adversaries, while similar proposals have been put forward in Illinois and Oklahoma [4f3c7e8b].
The efforts to divest from Chinese companies by these states reflect the broader tensions between the US and China. The divestment measures are seen as a response to concerns about national security risks and potential conflicts of interest. Missouri, Indiana, and Florida have taken concrete steps to restrict their public pension funds from investing in Chinese companies. These actions highlight the growing scrutiny and skepticism towards Chinese companies in the US. However, the success of these divestment measures varies from state to state, with some facing opposition or being vetoed.
According to an analysis by Future Union, US public pension funds and university endowments have invested about $146 billion in China between 2018 and 2022. This significant investment has raised concerns about China's growing threat to the US. In response, the US Treasury Department has proposed a rule that would prohibit American investors from funding AI systems in China with military uses. This move aims to address the national security risks associated with Chinese technology [ab711018].
In addition to divestment from Chinese companies, some states have also targeted Chinese ownership of US land. Two dozen states have laws restricting foreign ownership of agricultural land, with the intention of limiting Chinese control over American farmland. Florida Governor Ron DeSantis has signed a law requiring divestment from Chinese-owned companies, while Arizona Governor Katie Hobbs vetoed a bill that would have required divestment from companies in countries considered foreign adversaries. These actions demonstrate the varying approaches taken by different states in response to concerns about Chinese influence and national security risks [ab711018].