West Virginia Investment Management Board agrees to divest from Chinese companies

The West Virginia Investment Management Board has made a significant decision to divest from Chinese-owned companies. This move, approved by the board, has garnered praise from Governor Patrick Morrisey as well as State Treasurer Larry Pack.

The decision to divest from Chinese-linked companies was made following a similar policy adopted by the Board of Treasury Investments. Governor Morrisey, who also serves as the chair of the Investment Management Board, emphasized the threat posed by the Chinese Communist Party to national security, highlighting the lack of transparency, legal oversight, and financial risks associated with investments in Chinese-owned companies.

State Treasurer Larry Pack, who proposed the Chinese divestment policy in February, commended the decision, highlighting the importance of ensuring that American dollars are not put at risk by investing in companies that are against the values and way of life in the United States. The policy adopted by the Investment Management Board and the Board of Treasury Investments requires a thorough review of all state investments to identify and divest from any Chinese-owned or controlled companies.

This divestment policy aligns with efforts in other states to mitigate financial risks associated with Chinese investments. Governor Greg Abbott of Texas issued an order to state agencies to begin divesting funds from Chinese companies, and financial officers from 15 states wrote a letter calling for divestment due to concerns about financial audits, stock manipulation, and the presence of military and intelligence officials in Chinese companies.

Furthermore, the State Treasurer’s Office, in collaboration with two state financial officials, sent a letter to the U.S. Securities and Exchange Commission requesting an investigation into delisting China-based issuers of stocks on U.S. exchanges. These collective efforts reflect a growing recognition of the need to hold foreign actors accountable and safeguard financial interests against potential risks associated with investments in Chinese-owned companies.

The West Virginia Investment Management Board and the Board of Treasury Investments play crucial roles in managing the state’s long-term and short-term investments, respectively. With combined assets amounting to billions of dollars, these boards have a responsibility to protect the investments of West Virginians and ensure that state funds are not used to support companies linked to the Chinese Communist Party.

In conclusion, the decision to divest from Chinese-owned companies marks a significant step towards safeguarding state investments and mitigating financial risks associated with foreign investments. By adopting this proactive approach, the West Virginia Investment Management Board and the Board of Treasury Investments are taking necessary measures to protect the financial interests of the state and its residents.