Texan Governor Greg Abbott issued a letter to state government agencies on Thursday (November 21) following three consecutive executive orders targeting the Chinese Communist Party (CCP), prohibiting Texas investment institutions from making any new investments in China and requiring the withdrawal of existing investments in China at the earliest possible time.
In an official statement from the Office of the Governor, Abbott formally instructed all state government agencies in Texas to fully divest any investments related to China to safeguard Texans from CCP influence and urged a swift completion of the divestment process.
In the letter, Abbott stated, “The provocative actions of the CCP in the entire Southeast Asia and globally have escalated the instability of the situation, and have brought financial risks to state government investments in China.”
He emphasized that as the CCP’s aggressive behavior towards the United States and its allies continues, financial risks associated with investments in China will continue to escalate.
Abbott demanded, “All state government investments in China must be reassessed and immediate action (divestment) taken.”
This is not the first time Governor Abbott expressed concerns about the potential threats of investing in China.
In 2023, he collaborated with three other governors to urge Vanguard, the world’s largest mutual fund company, to create a new emerging market fund to circumvent risks posed by the CCP.
Vanguard Group, managing assets of $7.1 trillion worldwide, accelerated its withdrawal from China last October.
Abbott added, “Furthermore, this year I have directed the University of Texas/Texas A&M Investment Management Company (UTIMCO) to divest from its investments in China.”
Abbott emphasized, “Texas will defend and safeguard itself and our public finances from any potential threats, including those posed by the CCP.”
Since Monday (November 18), Abbott has been issuing daily executive orders targeting the CCP, aimed at protecting Texans from CCP agent harassment; safeguarding infrastructure, intellectual property, and personal information security from malicious CCP espionage activities; and protecting critical infrastructure from CCP threats of destruction.