Just the facts, ma’am – We’re underwriting our enemy, the Chinese Communist Party

Rarely, if ever, has a government initiative with more strategic importance been unveiled in a more low-key way than a “fact sheet” issued by the State Department on Saturday. The facts thus revealed about the Chinese Communist Party’s deep penetration of our capital markets, however, are likely to be shocking to most American investors – and a stunning rebuke to those who have put our money into what the government calls “malign PRC companies.”

According to State’s fact sheet, large numbers of such CCP-tied companies are, either in their own right or via subsidiaries, tapping U.S. exchanges for capital. That means, “The Chinese Communist Party’s threat to American national security extends into our financial markets and impacts American investors.”

The State Department-identified U.S. indexes – and the Exchange Traded Funds that “wrap” them – exposed as these malign companies’ underwriters must divest such assets. Now.

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.