Governor Greg Abbott has directed state agencies to withdraw all investments from China as part of an effort to protect Texas' financial interests. According to a statement obtained by the Office of the Governor of Texas, Abbott's directive aims to shield Texans from the financial risks associated with the Chinese Communist Party (CCP). "Security of Texas and Texans is of utmost importance," the Governor's letter states.
The Governor's concern is based on what he describes as the increasing actions of the Chinese Communist Party (CCP), which he believes have contributed to rising instability in the Southeastern Pacific region and heightened financial risks to state investments in China. Notably, the Governor mentioned in his letter, "all investments of state funds in China must be evaluated and immediately addressed," according to the press release. This decision follows earlier efforts in which Governor Abbott, along with three other governors, worked with Vanguard to create emerging market funds designed to reduce risks related to the Chinese Communist Party (CCP).
Earlier in the week, Governor Abbott took a stronger stance against the Chinese Communist Party (CCP) with a series of executive orders. These orders are intended to address concerns related to harassment of Texans, protect state government systems from foreign interference, and secure critical infrastructure from threats linked to both the People's Republic of China (PRC) and the CCP. Additionally, the FBI's Houston office issued a warning about the potential targeting and harassment of Chinese dissidents in Texas by the PRC.
The divestment directive is Governor Abbott's latest effort to protect Texas from what he identifies as a growing threat from China. As noted in his communication to state agencies, "Texas will defend and safeguard itself and our public treasury from any potential threat, including those posed by the CCP." This action is seen as a defensive measure to ensure that Texas remains steadfast in the face of any financial adversities that may arise from foreign entities, as per a press release from the Office of the Governor of Texas.
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