US senators require that one of the largest US government pension funds reverse a decision that is meant to funnel billions of US dollars into financing Chinese companies they say support Beijing's military, espionage and domestic security efforts.
By Miami Diario Newsroom
The truth is that the demand shows how the rivalry between the United States and China, which has so far focused primarily on trade war tensions, is spreading beyond financial markets.
It is worth noting that the senators Marco Rubio, Republican, and Jeanne Shaheen, a Democrat, told Michael Kennedy, chairman of the Federal Retirement Savings Investment Board, in a letter that their fund is supporting Chinese state-owned companies with "members' paychecks." of the United States and other employees of the federal government.”
It was learned through the letter that an imminent investment change by the FRTIB would mean that around $50 billion in US government pensions would be exposed to the "severe and undisclosed" risks of investing in companies. selected Chinese.
The letter is dated August 26 and was copied to senior US officials, including US Secretary of State Mike Pompeo and Treasury Secretary Steven Mnuchin. “The Federal Retirement Savings Investment Board made a short-sighted and foolish decision to effectively fund the efforts of the Chinese government and the Communist Party to undermine the economic and national security of the US.
Rubio told the Financial Times the following: “The Federal Retirement Savings Investment Board should publicly overturn this decision immediately«.
It must be considered that andhe FRTIB manages around $578 billion in assets in its Savings Savings Plan and has some 5,5 million participants. It is considered one of the largest retirement funds in the United States.
With information from press release