Governor Greg Abbott has written a letter directing all Texas state agencies to divest from investments tied to China, citing national security concerns and rising risks from the Chinese Communist Party.
The governor’s new directive, published in a letter this week, calls for a complete reevaluation and liquidation of any state-held investments in Chinese assets.
The letter, addressed to state investment agencies, focuses on the growing concerns over China’s geopolitical actions and its potential influence on certain markets in America, as well as the overall safety of residents in America.
Abbott cited China’s growing aggression in global affairs as a key factor contributing to instability in Texas, which he warned could pose risks to state investments.
“Security of Texas and Texans is of utmost importance,” Abbott wrote.
“That includes the financial security of Texas state investments. 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,” he added.
Last year, Gov. Abbott and the governors of three other states wrote a letter collectively urging the investment firm Vanguard to create emerging market funds that would protect investments from risks tied to Chinese interests.
Additionally, earlier this week, Abbott signed several executive orders aimed at hardening Texas’ defenses against CCP interference, including specific measures to prevent Chinese espionage.
As previously reported by The Dallas Express, Abbott’s recent executive orders target what he describes as “coordinated harassment and coercion” by Chinese officials against Chinese dissidents who speak out against the CCP.
The executive order also specifically targets the CCP’s “Operation Fox Hunt,” a global campaign aimed at intimidating and forcibly returning Chinese dissidents living in the U.S. The FBI describes it as an effort by China to target nationals viewed as threats to the regime. However, in a recent press release, Abbott made it clear that Texas will not tolerate any harassment or coercion of its more than 250,000 residents of Chinese descent.
The Federal Bureau of Investigation office in Houston echoed these concerns in a recent public warning, which focused on the increasing threat posed by the People’s Republic of China against those living in Texas who are critical of the Chinese government.
According to some experts, the Governor’s move to divest from China could carry some big financial implications for the state.
Texas’ public pension funds, which manage billions of dollars in investments, have long held stakes in Chinese companies, particularly in sectors like technology and manufacturing.
