Many hard-working Americans rely on their monthly pension payments to pay the bills after they retire.
But nothing in life is guaranteed, and that also applies to the income you might receive later in life.
And now a new report has found that the U.S. government sent billions of Americans’ pension dollars to China.
Billions of public pension funds sent to China
A recent report from Future Union, a bipartisan nonprofit group, uncovered that over $68 billion in public pension funds from the U.S. have been invested in China since 2020.
Those investments have continued despite the growing tensions between the two nations.
The report was obtained by the New York Post and found that 56 of the 74 largest American pension funds have funneled money into the Chinese market during that time.
It also noted that the money was sent with the intent to contribute to the “technological advancement of China.”
According to the report, “In the past 12 months, 24 investments alone have been made [into venture capital and private equity funds in China], which should be acknowledged as support for the technological advancement of China. Our research indicates four of the largest U.S. public pensions have invested in China in the last few months.”
The New York State Common Retirement Fund was one of the largest funds invested in China, with a total of more than $8.3 million.
Some of the other top public pension funds include several public employee pension funds from California, Washington state, and Pennsylvania, all to the tune of between $3.2 billion and $7.86 billion.
In total, U.S. public pension funds have invested over $73.28 billion in China.
Andrew King, Future Union Executive Director, said that the issue of sending pension funds to China is concerning due to the national security threat the communist nation poses.
When speaking to the New York Post, King said, “The threat posed by China to America’s national security is clear, yet the managers of our retirees’ pensions and university endowments continue to feign ignorance and rue accountability, undermining America’s national interests. That must end now.”
King also noted that funds leaders have “taken the path of least resistance in preserving optionality instead of demonstrating true leadership and doing what’s right instead of what’s easy.”
Money is going to our competitors
Notably, King mentioned that the funds leaders are investing in “startups that are competing against us and democratically aligned countries with a rigged system where the [CCP] members basically put the thumbs on the scale of who wins, and so obviously returns are better.”
Economist with the American Institute for Economic Research, Dr. Ryan M. Yonk, says it’s not surprising that pension funds are investing in China since they tend to perform rather well.
Yonk claims that objections to investing in the Chinese market are becoming more frequent “in response to heightened tensions between the U.S. and China and a desire in some circles to use regulation of investment as a foreign policy tool.”
In his opinion, preventing these investments might “potentially leave beneficiaries worse off as a result.”
On the other hand, he did note that Chinese markets have a more pessimistic economic outlook over the long term.
Informed American will keep you up-to-date on any developments to this ongoing story.