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Trump orders federal pension fund not to invest in China

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Donald trump It has ordered a federal pension fund not to invest in Chinese stocks by considering certain companies of the Asian giant a danger to national security, according to CNBC.

The Department of Labor has warned the 'Federal Retirement Thrift Investment Board' that his plan to invest federal pensions in Chinese companies would place "billions of dollars in retirement savings in ventures that pose a threat to the national security of the United States."

The entity planned to invest part of the pensioners' savings in an index called 'MSCI ACWI ex USA IMI', which includes stocks in a wide range of developed and emerging markets, including China.

"By order of President Trump, you must immediately stop all steps associated with investing and reverse its decision to invest the Plan's assets on the basis of that international variable income index, "the Department of Labor has ordered.

The entity manages funds for the retirement of federal employees and members of the military. The fund that gives federal employees exposure to international stock markets has an exposure of about $ 41 billion, out of a total of $ 557 billion.

Trump's order fuels tension with China after coronavirus crisis, because the US Administration considers that Beijing has not given truthful information about the origin of Covid-19.

Also, shake up the confrontation with the Asian giant helps the president divert attention to the dire management of the pandemic, especially in the face of the November election, where he is playing to revalidate his stay in the White House.

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