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.