Former CIA station chief in Moscow Dan Hoffman discusses the Biden administration’s decision to send more aid to Ukraine following Trump’s victory, President-elect Trump’s strategy for the conflict, and his Middle East foreign policy.
FIRST ON FOX: Michael Lucci, CEO of State Armor – a global security watchdog group – issued a warning letter to governors and state finance leaders, urging them to reconsider investments in China-based companies due to the country’s increased risks and the possibility of increased US restrictions.
“Furthermore, the Chinese Communist Party’s (CCP’s) extensive control over corporations prevents fiduciaries from accurately evaluating China-based investments,” Lucci wrote. “Indeed, the CCP has taken measures to prohibit accurate audits, and to prevent firms from conducting due diligence. The CCP has repeatedly disrupted its stock and bond markets, and is placing CCP and military cells in companies.”
DRONEMAKER DJI SUITS PENTAGON ON CHINESE MILITARY LIST, SEES HUGE FINANCIAL DAMAGE
The flags of the United States and China fly from a lamp post in the Chinatown area of Boston on Nov. 1, 2021. (Reuters/Brian Snyder/File Photo/Reuters)
Lucci noted that many states lost pension fund value due to the same direction and Russian investments before the Ukraine conflict. As tensions rise over Taiwan and the US imposes tighter controls on Chinese financial interests, Lucci advised states to re-evaluate their fiduciary duty to pensioners, suggesting divestment from China-based companies as an effective measure to protect state assets.
In a statement sent to FOX Business, Lucci said in part, “State and local pensions lost billions in Russian investments after Russia’s invasion of Ukraine.”
“Since then, they’ve made a huge mistake by pouring tens of billions of taxpayer dollars into China as China threatens to attack Taiwan,” Lucci said. “There is no reason for public money to be invested in China, and the argument for dismantling is supported by strong reasons of honest duty, national security and human rights.”
The letter comes as Sen. Marco Rubio, R-Fla., of China, has been appointed as President-elect Donald Trump’s secretary of state. Rubio’s nomination still needs to be confirmed by the Senate.
CHINESE EXPERT SOUNDS ALARM ON ‘WAR WIRE’: ‘XI JINPING IS ABOUT TO DO SOMETHING REALLY TERRIBLE’
Investors pay attention to the stock market at a securities business hall in Fuyang, China, on Dec. 5, 2023. (Photo by Costfoto/NurPhoto via Getty Images)
Earlier this month, more than a dozen finance officials from 15 states also sent a letter to pension fund managers, urging them to sever ties with them. It is based in China investment due to CCP control of other firms.
The House Select Committee twice convened on the Strategic Competition between the US and the CCP he issued a report earlier this year detailing how asset managers and index providers have invested more than $6.5 billion in 63 companies in China that have been blacklisted or red-flagged by the US government.
Under current law, US government agencies maintaining various embargo lists and red flag lists that serve many purposes, from banning exports to foreign incorporated firms and banning imports due to contact with the use of forced labor, limiting the purchase of equipment that poses a threat to national security and more. .
US COMPANIES WITH HIGH EXPOSURE TO CHINA FACE MANY RISKS
The watchdog’s letter urges US state leaders to divest public funds from China, citing growing risks of international conflict, financial transparency and US restrictions. (Photo by LI XIN/AFP via Getty Images / Getty Images)
Most of these lists do not prevent US asset managers or investors from investing in listed companies. One active list limit US investment for listed firms, the Ministry of Finance’s NS-CMIC list, restricts investment only to listed firms but does not include subsidiaries of those firms, allowing them to receive US capital.
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Fox Business Network’s Eric Revell contributed to this report.
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