Missouri State Treasurer Vivek Malek is seeking reelection in the Republican primary after pushing for the state’s main retirement system to divest its holdings in Chinese companies. Malek’s efforts have made Missouri one of the first states in the nation to do so. Malek’s campaign is now touting the Chinese divestment as a key achievement as he faces challengers who also denounce financial connections to China.
The move to divest from Chinese companies is part of a broader trend among states to limit investments in foreign adversaries. Indiana and Florida have also restricted their public pension funds from investing in certain Chinese companies, with other states considering similar legislation. Critics of Chinese investments argue that China poses a threat to U.S. national security and economic interests.
However, some investment officials and economists warn that state-mandated divestments could weaken investment returns for retirees. The National Association of State Retirement Administrators opposes such policies, arguing that they should come from the federal government based on specific security or humanitarian concerns.
The quest to halt investments in Chinese companies comes as a growing number of states target Chinese ownership of U.S. land. The push for divestment reflects a broader confrontation between China and the United States, with some states enacting laws to limit Chinese ownership of agricultural land and property near military installations and critical infrastructure.
Indiana has already begun the process of divesting from certain Chinese companies, with other states following suit. The issue of Chinese investments has become a key point of discussion in the Missouri treasurer’s race, with Malek and his challengers pledging to continue efforts to limit financial ties with China.
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