North Dakota Senate Rejects Bill to Divest Legacy Fund from Chinese Investments
The North Dakota Senate recently voted down a bill that would have allowed the State Investment Board to divest the Legacy Fund from Chinese investments. House Bill 1330 failed by a 20-26 vote, with only about $246 million of the $12 billion fund being affected, or about 2.1%.
Primary sponsor Rep. Bernie Satrom cited human rights abuses and national security threats from the Chinese Communist Party as reasons to divest from Chinese companies. However, critics argued that this move could hinder the growth of the Legacy Fund by limiting investment opportunities in a major market.
Sen. Jerry Klein expressed concerns about singling out countries in state law, noting that many Chinese companies are valuable partners to the United States and should not be penalized based on their location. The Retirement and Investment Board remained neutral on the bill.
While the bill did not pass, the Senate did approve another Legacy Fund-related policy, House Bill 1319, which requires the creation of a website detailing fund holdings. Gov. Kelly Armstrong signed this bill into law last week.
The debate over divesting from Chinese investments reflects broader concerns around national security, human rights, and economic growth. The decision to reject the bill highlights the complexities of balancing these factors when managing investment portfolios.
Note: The image is for illustrative purposes only and is not the original image associated with the presented article. Due to copyright reasons, we are unable to use the original images. However, you can still enjoy the accurate and up-to-date content and information provided.
