Amid tensions with China, some US states are purging Chinese companies from their investments

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Some U.S. states are scrapping investments in Chinese companies amid tensions between countries with the world's largest economies

FILE - The American and Chinese flags wave at Genting Snow Park ahead of the 2022 Winter Olympics, Feb. 2, 2022, in Zhangjiakou, China. Some U.S. states are scrapping investments in Chinese companies amid tensions between countries with the world's largest economies. As state treasurer, Vivek Malek pushed Missouri's main retirement system to pull its investments from Chinese companies, making Missouri among the first nationally to do so.

But some investment officials and economists have raised concerns that the emerging patchwork of state divestment policies could weaken investment returns for retirees. Yet this isn't the first time that states have blacklisted particular investments. Numerous states, cities and universities divested from South Africa because of apartheid before the U.S. Congress eventually took action. Some states also have divested from tobacco companies because of health concerns.The quest to halt investments in Chinese companies comes as a growing number of states also have targeted Chinese ownership of U.S. land.

In recent weeks, Malek has highlighted the Chinese divestment in campaign ads, asserting that fentanyl from China “is drugging our kids” and vowing: “As long as I’m treasurer, they won’t get money from us. Not one penny.”

 

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