Senators Demand U.S. Pension Fund Reject China Investment

Two senior members of the Senate Foreign Relations Committee are calling on administrators of the federal government’s main retirement savings fund to reverse a decision that they say would shift billions in investments into Chinese companies supporting that nation’s military and espionage efforts.

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Senators Marco Rubio, a Florida Republican, and Jeanne Shaheen, a New Hampshire Democrat, sent a letter Monday to Federal Retirement Thrift Investment Board Chairman Michael Kennedy criticizing the board’s November 2017 decision to shift its International Stock Fund investment option to mirror an index that includes some controversial Chinese companies.

“This change, which is expected to be implemented next year, will expose nearly $50 billion in retirement assets of federal government employees, including members of the U.S. Armed Forces, to severe and undisclosed material risks” associated with those companies, the two senators wrote.

The two sent copies of their letter to a number of top Trump administration officials, including Secretary of State Mike Pompeo, Treasury Secretary Steven Mnuchin, and Secretary of Defense Mark Esper. “We’ve received it and we’re reviewing it,” said Kim Weaver, a spokeswoman for the agency, adding that they will respond in a “timely manner.”

The letter, which was reported Monday by the Financial Times, illustrates the increasing support in the U.S. for keeping up pressure on China over its trade and human rights policies. President Donald Trump has made China the central focus of his trade policy.

Read more @Bloomberg