Missouri State Treasurer Vivek Malek is highlighting his success in pushing the state’s main retirement system to divest from Chinese companies as he seeks re-election in the upcoming Republican primary. Malek’s stance against financial ties with China aligns with a trend seen in other states, with Indiana and Florida also restricting their pension funds from investing in certain Chinese entities. This move is part of a growing opposition to China, which has been identified as a top threat to the U.S. by many political candidates.
However, there are concerns that such divestment policies could weaken investment returns for retirees. Some experts argue that these policies may make U.S. citizens poorer in the long run. Despite these concerns, more states are enacting laws to limit Chinese investments in various sectors, including land ownership.
Malek’s challengers in the Republican primary, state Rep. Cody Smith and state Sen. Andrew Koenig, also support divestment from China, citing the country’s increasing instability as a reason to limit financial ties. Florida Governor Ron DeSantis recently signed a law requiring divestment from Chinese-owned companies, while Arizona’s Governor Katie Hobbs vetoed a similar bill citing potential negative impacts on the state’s economy.
The U.S. Treasury Department has proposed rules restricting American investors from funding certain technologies in China with military applications, reflecting a broader trend of increasing tensions between the U.S. and China. As states continue to navigate these complex issues, the federal government faces challenges in managing the overall relationship with China amidst a scattershot policy at the state level.
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