Start by denying our enemy further American underwriting, especially from federal employees, military personnel
August 5, 2022
WASHINGTON, D.C.— In the wake of House Speaker Nancy Pelosi’s visit to Taiwan, the Chinese Communist Party (CCP) has launched what amounts to at least a short-term blockade of Taiwan in the form of six exclusion zones surrounding the island in which it will conduct days of live-fire air and naval exercises. Some designated areas extend inside Taiwan’s 12-mile Exclusive Economic Zone, prompting the government in Taipei to declare it “an invasion.” And, for the first time, Beijing has fired ballistic missiles over Taiwan. Absent a robust response by the United States and its regional allies, a full-on CCP attack on Taiwan — and perhaps other targets, possibly including American assets, personnel and territory — may well be in the offing in the relatively near term.
The Committee on the Present Danger: China (CPDC) has, from its founding in February 2019, argued that — in light of the “unrestricted warfare” the CCP has waged against the United States for decades — at a minimum, Wall Street must stop financing the Chinese Communists’ belligerence with trillions of dollars-worth of U.S. pension funds Exchange-traded Funds and other investment vehicles.
That recommendation is no longer simply strategically prudent and, indeed, necessary. With the prospect of actual kinetic war with China now looming, it is the fiduciary responsibility of U.S. capital markets and their regulators to minimize the potential losses American investors are likely to incur when, not if, Beijing treats them like Chinese depositors and homeowners denied access to their funds and properties by the burgeoning meltdowns of its banking and real estate sectors.
Incredibly, as an article in yesterday’s Wall Street Journal makes clear, the CCP’s “Old Friends” on the Street, like BlackRock’s Larry Fink, are seeking to invest still more of their clients’ money in companies owned or controlled by the Chinese Communist Party. A particularly lucrative target for such fundraising for our mortal enemy is the $750 billion federal retirement system — the Thrift Savings Plan (TSP).
The Journal’s report makes clear that BlackRock and the other TSP fund manager, State Street, have effectively eviscerated President Trump’s decision two years ago to ensure that U.S. government employees and military personnel are not induced to invest in China — especially in CCP corporations that have been officially sanctioned or otherwise identified as working with the People’s Liberation Army or implicated in human rights abuses. As data generated by a group of former military personnel, diplomats and other civilian federal employees dubbed the “No TSP for CCP” Coalition documents,
Thrift Savings Plan participants may be unwittingly investing in “potentially hundreds” of such problematic Chinese companies.
The Committee on the Present Danger: China joins other members of the No TSP for CCP Coalition in urging the Biden administration (especially the Treasury Department and the National Economic Council), the Congress, the Securities and Exchange Commission, the Public Company Accounting Oversight Board, and U.S. securities exchanges to deny companies that enable and intensify the CCP threat with the investment dollars of average American investors.
Learn more about the larger issue of such financing of our time’s “existential threat to freedom” at www.PresentDangerChina.org and the specific outrage of the Thrift Savings Plan being used for this purpose — and how you can express your opposition to it — at www.NoTSPforCCP.org.