Florida is taking significant steps to divest from China. The State Investment Advisory Council voted overwhelmingly on Monday to direct fund managers to reduce investments in China within the Florida Retirement System Investment Plan, with the goal of eventually reaching zero exposure.
This move follows recent efforts by the state to distance itself financially from China. Earlier this year, Governor Ron DeSantis signed legislation requiring the State Board of Administration to develop a plan to sell off holdings in companies with majority ownership by the Chinese government, Communist Party, or military.
READ: UnitedHealthcare CEO Murder Suspect Held Without Bail In Pennsylvania
Lamar Taylor, chief investment officer for the State Board of Administration, explained the shift in perspective on China. Prior to the COVID-19 pandemic, investments in China were seen as a way to encourage its integration into the global market and potentially influence positive change in areas like human rights. However, China’s growing economic, political, and military power has led to concerns about its competitive stance.
“I think there’s likely to be more action taken in response to that reality, that is going to have risk in terms of impacting our returns,” Taylor said.
READ: Florida Gun Rights Endorses Bill To Legalize Open Carry, Repeal Red Flag Law
A House analysis earlier this year revealed that the retirement system held approximately $277 million in investments linked to over 200 Chinese state-owned entities, representing a small fraction of the overall portfolio. The majority of these investments were valued at less than $5 million each.
This decision by Florida reflects a broader trend among some US states to reduce their financial ties with China amidst growing geopolitical tensions and concerns about national security.
Please make a small donation to the Tampa Free Press to help sustain independent journalism. Your contribution enables us to continue delivering high-quality, local, and national news coverage.
Connect with us: Follow the Tampa Free Press on Facebook and Twitter for breaking news and updates.
Sign up: Subscribe to our free newsletter for a curated selection of top stories delivered straight to your inbox.