Rep. Banks Statement on CalPERS CIO Resigning

Statement

WASHINGTON -- Upon learning of CalPERS Chief Investment Officer Yu Ben Meng resigning, House Armed Services Committee member Rep. Jim Banks released the following statement:

"Taxpayers shouldn't be forced to fund our adversary's military. With Yu Ben Meng's departure, CalPERS now has the opportunity to correct its course and divest from companies within China's military-industrial complex.

"The United States government must do more to stop the flow of U.S. capital to companies affiliated with the Chinese military. That's why I've introduced a permanent solution to this issue with the "Stop Funding the PLA Act" that would block U.S. investments--including investments from pension funds--in China's military industrial base. Congress should take up and pass this legislation now."

Earlier this year, Rep. Jim Banks raised concerns about CalPERS investment strategy with California Governor Gavin Newsom after he learned that the pension fund was invested in companies blacklisted by the Commerce Department and affiliated with the People's Liberation Army. He also requested the governor investigate Yu Ben Meng's previous ties to the Chinese Communist Party.

This summer, Rep. Banks introduced the "Stop the PLA Act" that would block U.S. investments--including investments from pension funds like CalPERS--in China's military industrial base.

The need for this legislation became apparent again this week when it was reported that coronavirus stimulus loans were paid to companies with ties to China's aviation and defense industries.

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