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Trump Forbids US Retirement Funds From Investing In Shares Of Chinese Companies

Trump Forbids US Retirement Funds From Investing In Shares Of Chinese Companies

Donald Trump has ordered US Federal retirement funds to refuse to invest in shares of Chinese companies, according to Fox Business, citing internal documents of the Washington administration.

According to Fox Business, the assistant to the US President for national security Robert O'Brien and the head of the national economic Council of the White house Lawrence Kudlow sent a joint letter to the Secretary of labor Eugene Scalia, where they said that the administration does not want the Federal retirement Fund Thrift Savings Plan to invest in shares of Chinese companies. According to Fox Busines, these assets currently amount to $4 billion.

O'Brien and Kudlow called the situation "risky and unjustifiable" in a letter. At the same time, The White House's instruction in the text is directly linked to China's actions during the coronavirus pandemic.

In turn, Scalia, according to Fox Business, sent this letter to the head of Thrift Savings Plan, Michael Kennedy, noting that the order to withdraw funds from Chinese assets comes directly from Trump. The Fund Manager must submit a report on the decisions made by May 13.

The American authorities issued the relevant instruction in light of the marked deterioration in relations between the countries after the outbreak in China of a disease caused by a new coronavirus, which subsequently spread around the world. Washington accuses China of hiding information about the origin of the virus and the scale of the epidemic. In turn, Beijing expressed regret that "some politicians use the situation with the virus to defraud China."

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