In a recent statement, USA Indiana Senator Chris Garten mentioned, “People should put aside politics and unite to oppose the CCP and all threats it poses to our country.”
Over the past year or so, Indiana, Florida, Missouri, Oklahoma, Kansas, and Pennsylvania have initiated the withdrawal of their state retirement funds from China. More states are considering following suit, aiming to protect their retirement funds from potential harm amid Indo-Pacific conflicts.
Despite predominantly Republican states leading the divestment movement, it reflects a broader consensus among Americans towards deteriorating views of communist China. According to a Pew Research Center survey, 83% of Americans hold negative views of China, with one in four considering it an enemy, showing a significant shift since 2021. The Center claims restricting CCP influence should be a top priority in US foreign policy.
For years, retirement funds and US companies have been advocating investing in China, the world’s second-largest economy. However, rising risks associated with investments in China, including concerns of a potential invasion of Taiwan, have heightened tensions.
While there are varying opinions on the immediacy of the Taiwan Strait crisis, mounting concerns over conflicts in the Indo-Pacific region have led to decisions like halting investments. The Federal Retirement Thrift Investment Board ceased investments in Hong Kong and mainland China, citing geopolitical risks.
Investor Andrew King’s analysis underlines the need to shift private sector investments from authoritarian to democratic countries. Divesting from China is seen as an act of safeguarding against threats posed by the CCP.
States like Indiana and Missouri have faced losses related to Russian investments following the invasion of Ukraine, prompting them to take preemptive action against possible financial consequences in the event of conflict in the Indo-Pacific region.
State officials are cognizant of the evolving security landscape, with concerns extending beyond financial losses to issues like intellectual property infringement and espionage.
Various states, including Oklahoma, Kansas, and Pennsylvania, are introducing measures to assess risks associated with potential conflicts, urging divestment, and reviewing state assets’ vulnerability to hostile actors.
Florida Governor Ron DeSantis signed legislation aimed at divesting from Chinese assets and companies within a year, citing human rights abuses and security concerns.
As states take proactive measures, federal initiatives like the Committee on Foreign Investment in the United States (CFIUS) monitor foreign acquisitions. The proposed expansion of CFIUS powers underscores the urgency of addressing threats posed by foreign influence.
Regarding technology, restrictions on Chinese-owned apps like TikTok are being enforced by several states in alignment with broader national security concerns.
With the momentum towards anti-China policies expected to continue, regardless of the outcome of the presidential election, the US’s stance on dealing with CCP challenges is set to intensify in the coming years.
Actions at both state and federal levels reflect a growing consensus on safeguarding US interests against threats by communist China, with potential future changes in US leadership likely to shape policy directions further.