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.

”You’re talking a considerable amount of money that frankly is competing against the U.S. technology and innovation ecosystem,” King said. The National Association of State Retirement Administrators opposes state-mandated divestments, saying such orders should come only from the federal government against specific companies based on U.S. security or humanitarian interests.prohibiting American investors from funding artificial intelligence systems in China that could have military uses, such as weapons targeting.

Missouri State Treasurer Malek tried last November to get fellow trustees of the Missouri State Employees' Retirement System to divest from Chinese companies. After defeat, he tried again in December and won approval for a plan requiring divestment over a 12-month period. Officials at the retirement system did not respond to repeated questions from The Associated Press about the status of that divestment.

A law signed earlier this year by Florida Gov. Ron DeSantis requires a state board overseeing the retirement system to develop a plan by Sept. 1 to divest from companies owned by China. The oversight board had announced in March 2022 that it would stop making new Chinese investments.

 

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