The Florida House and Senate on Monday unanimously approved a proposal to divest pension-fund investments in Chinese state-owned companies.
The measure (HB 7071) is ready to go to Gov. Ron DeSantis. It would require the State Board of Administration to develop a plan by Sept. 1 for selling holdings tied to Chinese companies and complete divestment within one year.
The State Board of Administration invests state money, including money in the massive pension fund. House sponsor Mike Caruso, R-Delray Beach, said the bill is in response to the Chinese government, the Chinese communist party, and the Chinese military, having “long engaged in activities” that drew U.S. government sanctions.
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“So, too, the state of Florida should not be supporting companies owned or controlled by a nation that poses a threat to the United States,” Caruso said.
When the Senate took up the bill later, however, Sen. Jason Pizzo, D-Sunny Isles Beach, said the bill is a “little hypocritical” because the state and consumers purchase Chinese-made goods, such as computers and mobile phones.
The bill would not affect such purchases. The State Board of Administration is overseen by Gov. Ron DeSantis, Attorney General Ashley Moody, and Florida Chief Financial Officer Jimmy Patronis.
The proposal would prohibit pension-fund investments involving companies linked to the Chinese government, the Chinese communist party and the Chinese military.
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A House analysis said investments in more than 200 Chinese state-owned entities accounted for $277 million, or 0.16 percent, of the retirement system fund. Of that, $53.6 million is linked to China Construction Bank Corp., and $46.4 million is in Kweichow Moutai, which specializes in a particular Chinese liquor.
The majority of the investments are less than $5 million. Similar bans have been imposed involving Cuba since 1993, Sudan and Iran since 2007, and Venezuela since 2018.
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