In a move to curtail investment ties with entities controlled by the Chinese Communist Party (CCP), Pennsylvania State Senator Doug Mastriano has introduced a bill seeking to divest state funds from such companies. This legislation, Senate Bill 1141, is driven by concerns over the influx of fentanyl into Pennsylvania and broader ethical considerations regarding human rights violations attributed to the CCP.
Support for the bill has been echoed by Pennsylvania State Treasurer Stacy Garrity, who has already directed the Treasury’s investment team to pull out from Chinese holdings due to the geopolitical risks and the CCP’s human rights record. Garrity believes extending this policy across all commonwealth funds is a prudent step.
The legislation targets investments by the state’s largest public pension systems, the State Employees’ Retirement System and the Public School Employees’ Retirement System. It mandates a gradual divestment from businesses that bolster the CCP regime, known for its repressive actions, including alleged genocides and undermining democracy in regions such as Hong Kong and Taiwan.
The impetus for this move also stems from the substantial role that Chinese-manufactured fentanyl has played in Pennsylvania’s opioid crisis, with the CCP showing reluctance to curb its production and export.
The bill has now been forwarded to the Senate Finance Committee for further consideration, marking a significant step in Pennsylvania’s stance against investing in entities linked to widespread human rights abuses.