Financial officers from 15 states are urging public pension fund fiduciaries to sever ties with China-based investments due to concerns over the Chinese Communist Party's (CCP) influence on certain firms. The officers, including state treasurers from Alabama, Arkansas, Alaska, and others, emphasized the fiduciaries' duty to safeguard investments for future beneficiaries.
The letter highlights the CCP's control over Chinese companies, citing issues such as compromised financial audits and interference in stock and bond markets. The officers also raised alarms about the legality of Variable Interest Entities (VIEs), offshore shell companies commonly used for U.S. investments in China, which could face sudden legal challenges from the CCP.
