Texas governor Greg Abbott took to social media on Thursday to publish a letter directed at state agencies, ordering them to "divest" from investments tied to China, citing security concerns posed by the Chinese Communist Party (CCP). The announcement emphasizes the priority of safeguarding Texas's financial and public security.
"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," reads the letter from Abbott, who just last week signed an executive order targeting China's "Operation Fox Hunt," a Chinese government initiative which has reportedly resulted in the intimidation and forced repatriation of pro-democracy Chinese activists living abroad
"As Chinese aggression against the United States and its allies seems likely to continue, the financial risk associated with holding investments in China will also rise," continued Abbott on his Thursday letter, instructing all Texas agencies to evaluate and address existing investments in China and to cease making new investments "at the first available opportunity."
Abbott then goes on to reference how he has alerted about the threat of the Chinese Communist Party in the recent past:
"This is not the first time I have raised concerns about this looming threat. In 2023, I encouraged Vanguard to create new emerging market funds isolated from the risk posed by the CCP so that Texas would have an option to protect our citizens from exposure to the CCP without jeopardizing our financial returns. Also, this year, I instructed The University of Texas/Texas A&M Investment Management Company (UTIMCO) to divest from China"
The divestment directive comes amid broader scrutiny of U.S.-China relations and growing concerns among state and federal officials about economic and geopolitical risks associated with Chinese investments. Abbott's order aligns with efforts to limit financial exposure to foreign adversaries, a topic that has gained bipartisan attention in recent years.
"Texas will defend and safeguard itself and our public treasury from any potential threat, including those posed by the CCP," Abbott concludes the missive.
Security of Texas and Texans is priority #1.
— Greg Abbott (@GregAbbott_TX) November 21, 2024
Directed state agencies today to fully divest from China as soon as possible.
All investments of state funds in China must be immediately addressed.
We will safeguard our state and our public treasury from threats posed by the CCP. pic.twitter.com/Zj8HUzHsz3
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