Governor Greg Abbott has directed Texas state agencies to fully divest from investments connected to China, citing growing concerns over financial risks and national security threats posed by the Chinese Communist Party (CCP). In a letter issued Thursday, the Governor emphasized the need to shield Texas and its financial assets from the influence of foreign adversaries.
“Security of Texas and Texans is of utmost importance,” Abbott wrote. “That includes the financial security of Texas state investments. Threats to that security can come from foreign adversaries, including the Chinese Communist Party (CCP), whose belligerent actions across the Southeastern Pacific region and the world have increased instability and financial risk to the State holding investments in China. Therefore, all investments of state funds in China must be evaluated and immediately addressed.”
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Abbott’s directive prohibits state agencies from making any new investments in China and mandates the divestment of existing holdings at the earliest opportunity. The move aligns with Texas’ broader strategy to safeguard its financial and critical infrastructure from foreign influence.
“Texas will defend and safeguard itself and our public treasury from any potential threat, including those posed by the CCP,” the Governor added.
Previous Measures to Counter CCP Influence
This directive builds on a series of actions taken by Abbott’s administration to mitigate risks associated with China. Last year, Abbott and three other governors urged Vanguard to create emerging market funds that exclude investments tied to the CCP. Earlier this week, Abbott issued executive orders aimed at bolstering Texas’ defenses against CCP interference. These measures include:
- Hardening state government systems against infiltration by foreign adversaries.
- Protecting critical infrastructure from potential threats linked to the People’s Republic of China (PRC) and the CCP.
- Safeguarding Texans from harassment and coercion by the CCP, particularly targeting Chinese dissidents residing in the state.
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FBI Warning on CCP Harassment in Texas
The Governor’s latest announcement coincides with a warning from the Federal Bureau of Investigation (FBI) in Houston, which highlighted the CCP’s efforts to intimidate Chinese dissidents living in Texas. The FBI urged vigilance, citing coordinated campaigns by the CCP to silence critics and undermine opposition abroad.
Abbott’s directive reflects a growing focus on reducing Texas’ vulnerability to foreign influence. By eliminating financial ties to China, the state aims to bolster its security and economic resilience in the face of escalating geopolitical tensions.
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