Jun 12, 2023 - Politics & Policy

Banks looks to block retirement investments in CCP-linked companies

Juliegrace Brufke

Rep. Jim Banks (R-Ind.) Tom Williams / Contributor/Getty Images

Rep. Jim Banks (R-Ind.) introduced a bill Monday aimed at blocking federally regulated private pension plans from investing in entities based or controlled by foreign adversaries.

Why it matters: Banks, who sits on the Select Committee on China and Armed Services Committee, argues the legislation is a necessary move to stop funding “firms that are building up the People’s Liberation Army, stealing U.S. intellectual property and participating in the Uyghur genocide.”

In addition to barring investments into companies linked with Iran, North Korea, Russia and China, existing investments into “foreign adversary and sanctioned entities” would be required to be disclosed.
Fiduciaries of Employee Retirement Income Security Act plans would also be prevented from collecting interest, lending money, participating in transactions or transferring plan data with companies and countries considered adversarial.
The bill has backing from Select Committee Chairman Mike Gallagher (R-Wis.), Reps. John Moolenaar (R-Mich.) and Rob Wittman (R-Va.).

The big picture: During the 118th Congress, there has been a larger bipartisan push to combat threats from China, which is expected to continue in the wake of the CCP increasing aggressions within the United states.

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Banks looks to block retirement investments in CCP-linked companies

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