Thank heavens, President Trump recently blocked the investment of retirement savings of US military personnel and other federal employees in Chinese Communist Party companies.
There are three justifications: First, such companies don’t comply with our rules designed to protect investors against fraud and material risk. Second, some pose a threat to our national security. And third, some help the CCP violate the human rights of its own people and, increasingly, others around the world.
Unfortunately, Wall Street indexes that guide many exchange traded funds are investing in those same Chinese companies other savings belonging to our servicemen and women and their civilian counterparts.
Worse yet, no one – not the indexes, not the exchange traded funds and not the Securities and Exchange Commission – is doing due diligence on these CCP corporations. Or reliable audits. What could possibly go wrong?
That must stop, too.
This is Frank Gaffney.