Minnesota Governor Tim Walz has come under scrutiny for allowing significant state investment in Chinese funds, in stark contrast to red states like Florida, Indiana, and Missouri that are banning such investments. Since 2019, about 70% of the $1.3 billion in Chinese funds has been directed by the Minnesota State Board of Investment (SBI) appointed by Walz. While the board claims to have not made new investments since Walz took office, existing investments were continued.
According to a data analysis by Future Union, these investments pose a national security risk, with concern over transferring knowledge and technology to China. The House Committee on Oversight and Accountability is investigating Walz’s ties to China, with Republicans raising concerns about his investments in an adversary nation.
Despite the potential for substantial returns from Chinese funds, Future Union founder Andrew King warns of CCP influence in determining which companies receive investments, jeopardizing critical technologies. While Minnesota’s investments represent just over 1% of the overall budget, the state has one of the largest pension amounts for a smaller state investing in Beijing.
As other states move to restrict investments in Chinese funds, Future Union emphasizes the importance of prioritizing the long-term interests of pensioners by investing in secure investments in the US, rather than supporting an adversary like China. With calls for action against further investments in Chinese funds, the debate over state involvement with China continues to gain traction.
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