In a decisive move to protect Texas’ investments, Gov. Greg Abbott has directed state entities to halt new investments in China and divest from existing holdings linked to the Chinese Communist Party (CCP).
In a letter written to the heads of state agencies, Abbott stressed the importance of safeguarding the security of Texas:
Security of Texas and Texans is of utmost importance. 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. As Chinese aggression against the United States and its allies seems likely to continue, the financial risk associated with holding investments in China will also rise. Therefore, all investments of state funds in China must be evaluated and immediately addressed.
One investment group specifically highlighted in Abbott’s letter is the University of Texas/Texas A&M Investment Management Company (UTIMCO), which manages billions of dollars in assets for both university systems.
UTIMCO has come under scrutiny after a Texas Scorecard investigation revealed its investments in more than 50 Chinese companies. This raised alarm about the potential risks associated with Texas funds being entangled with entities tied to the CCP.
The directive from Abbott is the fourth this week concerning China and the security of Texans. Abbott has also recently issued executive orders to counter harassment campaigns by the CCP and to protect Texas infrastructure from Chinese interference and espionage.
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