Tim Walz’s Minnesota State Investment Board increased contributions to Chinese funds during his tenure

As red states like Florida, Indiana and Missouri pass laws prohibiting their state investment boards from engaging with Chinese funds, Minnesota Governor Tim Walz has allowed his state to support Beijing to grow.

As governor of the Land of 10,000 Lakes, Walz, the Democratic vice presidential candidate, has significant authority over the selection of members of the Minnesota State Board of Investment (SBI), who are typically elected or appointed by a comptroller or treasurer in other countries. states.

Since Walz became governor in 2019, SBI appointees have directed about 70% of the roughly $1.3 billion moved into Chinese funds, according to a data analysis by the nonpartisan watchdog group Future Union.

“The governor selects and appoints members of the board of directors that oversees the pension. It’s not an elected board,” Future Union CEO Andrew King told The Post. “Simply put, Governor Waltz is the most important elected person in government with personal responsibility and accountability to control investments.”

While the board has claimed it has not made any new investments in Chinese funds since the year Walz took office, King said that is misleading because he continued existing investments. even at TikTok’s parent company, ByteDance – throughout the governor’s term.

Investments in Chinese funds pose a risk to national security for several reasons, King said. While the US dollars fueling Beijing’s economy are worrying on their own terms, it is often the “relationship elements and knowledge that are far more impactful – and dangerous – if transferred to an adversary.”

“States must make smart decisions and protect the interests of their pensioners by seeking safe investments in the United States,” King said. “We are not only putting capital at risk, but also the transfer and loss of irreplaceable and invaluable intangible knowledge and cutting-edge technology through corporate pressure and the cyber theft for which China is famous.”

Minnesota’s $1.3 billion in investments in China represents a little more than 1% of the state’s total investment budget, which King said was considerable given that Minnesota has “one of the largest pensions in a smaller state.” ” who invests in Beijing.

While some of the money has gone to Chinese-owned funds that invest exclusively in the United States, King said even those are a problem because “the quid pro quo requires giving up technology and gaining access and influence in order to get approval to invest.” in new companies in China. .”

States and other investors may be tempted to collaborate with Chinese funds due to their often substantial returns. However, this is “largely because the Chinese Communist Party (CCP) put its thumb on the scale of which companies are the Party’s preferred winners,” according to King.

“The problem is that in China’s rigged system, the CCP is the gatekeeper of which fund wins the government’s favor to invest, meaning the funds are incentivized to compete with each other and sacrifice increasingly lucrative expertise, treating the most critical sectors of the United States. technologies as mere pawns,” King said.

The news comes as Republicans have raised concerns about Walz’s deep ties to China, a country he has visited repeatedly over the previous three decades. In August, the House Oversight and Accountability Committee began investigating Walz’s case. connection with government officials in the opposing nation.

“It is very concerning that Governor Walz has heavily invested Americans’ tax dollars in communist China, which is controlled by a regime that seeks the destruction of our nation,” committee chairman James Comer told the Post ( R-Ky.). “This revelation underscores the importance of the Oversight Committee’s investigation into the CCP’s efforts to influence and capture Governor Walz.”

“The government’s Oversight Committee investigation into how federal agencies are addressing the CCP’s political and economic warfare has also revealed how dangerous unfettered engagement and investment in China has been,” he added. “However, the Harris-Walz campaign has demonstrated a complete lack of interest in strengthening the American homeland in the face of the CCP’s Cold War.”

While Minnesota is not the only one that has state funds invested in ChinaThere has recently been a push in several states to ban the practice. Florida, Indiana and Missouri have recently enacted laws to restrict future state investments in Chinese funds. Kansas passed a bill in April to limit such investments, and Oklahoma Gov. Kevin Stick has ordered relevant agencies to create plans to divest from China.

“Recently, the backlash against China… has become much more common,” King said. “…This is not a time for words, it is a time for action, and too many governors and states continue to shy away from leadership and allow these investments to continue.”

“States must prioritize the long-term interests of pensioners, who are best served by ensuring that investments remain liquid, do not suffer onerous contractual burdens designed to impede the free movement of capital, and, crucially, work to promote the interests of pensioners.” USA. States instead of an adversary dedicated to bringing us down.”