JEFFERSON CITY — State Treasurer Vivek Malek is putting the weight of his office behind a ban on public investments in “foreign adversaries†of the United States.
The measure would prohibit local and state governments, as well as agencies and public universities, from investing in governments or businesses of foreign adversaries — defined as China, Russia, Iran, North Korea, Cuba, Venezuela and Syria, but subject to revision at the discretion of the governor and attorney general.
Funds, like city employee retirement or state agency pension funds, would have two years to achieve the required divestments.
Malek said the law would apply to the state’s roughly 130 public pension funds and those of 13 four-year public universities.
The move comes as Malek is campaigning for a full, four-year term in the Treasurer’s office.
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He’s running against House Budget Committee Chairman Cody Smith, R-Carthage, state Sen. Andrew Koenig, R-Manchester, and Lori Rook, a Springfield attorney in the August GOP Primary.
At a news conference Thursday, Malek focused on China and called the country a “bad actor and bad investment.†He said China has “severe economic issues†and cited statements by U.S. Secretary of Commerce Gina Raimondo.
The effort builds on his recent push to end investments in China by the state employee pension fund.
Though the Missouri State Employees’ Retirement System board originally rejected Malek’s proposal, it reversed course after Gov. Mike Parson called on the board to vote in favor of it.
“The MOSERS board recently voted to divest from China, and I’m proud to have led that effort,†Malek said.
Rep. Brian Seitz, R-Branson, who is sponsoring the bill, said that “Missourians don’t want Missouri dollars being invested in China. They don’t want them going to the Democratic People’s Republic of Korea.â€
Just before the legislative session began, Parson announced an executive order banning farmland purchases by U.S. foreign adversaries within a 10-mile radius of critical military facilities in Missouri.
“When it comes to China and other foreign adversaries, we must take commonsense precautions that protect Missourians and our security resources,†Parson said when he announced the executive order.
Lawmakers this session have also introduced a number of measures to further restrict foreign ownership of farmland.
It’s become a perennial issue over the last several years, since a 2013 law permitted foreign ownership of up to 1% of the state’s farmland. Lawmakers gave the concern greater attention last year after a Chinese spy balloon flew over Missouri.
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