The State Department urges divestment from China

Last week, a top State Department official took the extraordinary step of warning leaders of academic institutions that there may be “a wholesale delisting” of Chinese corporations from U.S. capital markets by the end of next year.

Under Secretary of State Keith Krach – who, prior to taking up his present responsibilities had a successful career in business and in governance in the academy – told the boards of university endowments it would be “prudent to divest from PRC firms’ stocks.”

This message about undisclosed material risks and potential financial losses from investing in Chinese Communist Party companies should be heeded by individual and institutional investors on Wall Street and state public pensions funds, too.

Secretary Krach’s bottom line is absolutely right and must be heeded now, before Americans are subjected to predictable, and predicted, losses from enabling the CCP’s malevolence.

This is Frank Gaffney.

About Frank Gaffney, Jr.

Frank Gaffney is the Founder and Executive Chairman of the Center for Security Policy in Washington, D.C. Under Mr. Gaffney's leadership, the Center has been nationally and internationally recognized as a resource for timely, informed and penetrating analyses of foreign and defense policy matters. Mr. Gaffney formerly acted as the Assistant Secretary of Defense for International Security Policy during the Reagan Administration, following four years of service as the Deputy Assistant Secretary of Defense for Nuclear Forces and Arms Control Policy. Previously, he was a professional staff member on the Senate Armed Services Committee under the chairmanship of the late Senator John Tower, and a national security legislative aide to the late Senator Henry M. Jackson.