As the stock markets start to settle down after the tumultuous year that was 2020, many people are starting to breathe a little easier about their 401Ks. But the US State Department says that we all may be unwittingly fueling the biggest threat to our country.
Unbeknownst to many US investors, their financial investments are tied to the Communist Chinese and its military via major index funds. This news comes in a newly released fact sheet compiled by the State Department titled, “US Investors Are Funding Malign PRC Companies on Major Indices.”
This publication lists the names of publicly traded companies that present a national security threat to the United States, and states, “The Chinese Communist Party’s threat to American national security extends into our financial markets and impacts American investors.”
Many investment vehicles developed by index providers Morgan Stanley Capital International (MSCI) and Financial Times Stock Exchange Group (FTSE) include Communist Chinese companies blacklisted by the Pentagon and the US Department of Commerce.
Securities of many Communist Chinese companies are embedded in MSCI and FTSE exchange-traded funds (ETFs) and other reflexive investment funds benchmarked against these major indexes.
— The Epoch Times – China Insider (@EpochTimesChina) December 7, 2020
The fact sheet exposes the very disturbing fact that many of the US workforce’s pension assets are supporting these Communist Chinese companies.
Through its aggressive national strategy called “Military-Civil Fusion,” the Chinese Communist Party employs the financial successes of Chinese corporations to strengthen the People’s Liberation Army.
The US Department of Defense has blacklisted 31 Chinese firms this year alone that are either owned, controlled, or both by the People’s Liberation Army.
According to the State Department fact sheet, at least 22 of these militarized companies have associated entities whose securities are included on the MSCI EM index or FTSE Emerging index.
This scheme has also infiltrated the bond markets included in the Bloomberg Barclays Global Aggregate Bond index.