CHARLESTON, W.Va. (WVDN) – State Treasurer Larry Pack, who attended his first meeting as Chairman of the West Virginia Board of Treasury Investments Tuesday, applauded the Board for approving a policy that would prevent funds from being invested in Chinese-owned companies. The Board of Treasury Investments (BTI) manages more than $10.5 billion in short-term state and local government operating funds.
“This new policy will prohibit West Virginia from investing in short-term funds to companies owned by China,” Treasurer Pack said. “This is something we’ve needed to do for a long time. There’s no reason for us to invest in a country that is working against our interests. Divesting in China means investing more dollars in our great state.”
The Board approved the Prohibited Foreign Investments Policy during its quarterly meeting Tuesday morning in Charleston. The policy prevents direct investments from companies affiliated with the government of the People’s Republic of China, the Chinese Communist Party, the Chinese military, or any instrumentality or combination thereof.
“This is a step in the right direction to reassure our West Virginia citizens that they can trust my Office to manage their money in a responsible manner which reflects their values,” Treasurer Pack said. “Not one dollar of West Virginia taxpayer money should be invested in any financial asset issued by the Chinese government.”
If the Board determines that a direct holding in a Chinese company exists, the Board will establish a plan to divest the investment and complete the divestment as soon as financially prudent, according to the policy.
In April 2024, the West Virginia College and Jumpstart Savings Program Board of Trustees approved a proposal from former State Treasurer Riley Moore to cease any China investments from the SMART529 Select Plan, a direct-sold qualified tuition plan open to residents across the United States.
Treasurer Pack also plans on proposing a similar policy as Chairman of the West Virginia Investment Management Board (IMB) later this year to ensure the state’s long-term investments and pensions of the citizens of West Virginia are not invested with the People’s Republic of China.
“West Virginia should only invest state funds in high-quality, respectable assets – and China clearly has not met that criteria,” Treasurer Pack said. “I will be working on this issue over the next few months so that when I become the Chairman of the IMB our citizens can rest assured we do not have any government revenue invested in Chinese assets.”
While the BTI manages short-term operating funds for the state, it does not manage state pension funds. Those funds are managed separately by the IMB, which does not fall under the State Treasurer’s Office.
