Governor Greg Abbott has directed Texas state agencies to divest from investments tied to China, emphasizing the need to protect Texans from financial exposure to the Chinese Communist Party (CCP). In a letter issued today, the Governor mandated a full withdrawal of state funds currently invested in China and prohibited any future investments in the country.
“Security of Texas and Texans is of utmost importance,” Governor Abbott stated in the letter. “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.”
The Governor directed state investing entities to immediately evaluate their portfolios and divest at the earliest opportunity, emphasizing Texas’ commitment to safeguarding its public funds from geopolitical risks.
This directive follows a series of measures Governor Abbott has taken to counter perceived threats from the CCP. Earlier this week, he issued executive orders to protect Texans from harassment and coercion linked to the CCP and to bolster the state’s critical infrastructure against infiltration attempts by hostile foreign nations.
Additionally, the Federal Bureau of Investigation (FBI) office in Houston warned Texans of potential targeting and harassment of Chinese dissidents in the state by the People’s Republic of China (PRC).
Governor Abbott’s actions build on previous efforts to address financial risks tied to the CCP. Last year, he joined three other governors in urging investment giant Vanguard to create emerging market funds that isolate exposure to China.
