BATON ROUGE, La. — Louisiana State Treasurer John Fleming, M.D. is calling on the state’s public retirement systems to divest over $1 billion in Chinese stocks and bonds, citing national security concerns and a recent executive order from President Donald Trump.
In a letter dated May 13, 2025, Dr. Fleming urged the directors of all 10 Louisiana state retirement systems to reconsider their holdings in Chinese markets, citing what he described as “grave concerns” about the risks posed by the People’s Republic of China (PRC) and its financial practices.
“These investments were likely made years ago,” Fleming wrote, “but due to the threat posed by Communist China and President Trump’s Executive Order, I recommend that our state retirement systems carefully and methodically remove their existing Chinese market holdings and discontinue any new investments.”
The total amount invested in Chinese stocks and bonds across Louisiana’s retirement systems currently stands at $1.012 billion.
Backdrop: Executive Order and National Security
Fleming’s appeal follows President Trump’s February 21 executive order establishing the “America First Investment Policy.” The policy designates China as a foreign adversary and aims to restrict U.S. investment in Chinese entities believed to be advancing military capabilities through civilian-military fusion. The order specifically calls for a review of private equity, venture capital, and pension fund investments involving China.
Nine Risk Factors Cited
In his letter, Treasurer Fleming listed nine major risk factors tied to Chinese investments:
- Lack of financial transparency and adherence to international accounting standards
- Market manipulation by the Chinese Communist Party
- Illiquid markets with limited investor flexibility
- Exchange rate fluctuations
- High volatility and insufficient regulatory oversight
- Declining economic conditions and rising geopolitical tensions
- Human rights abuses
- Social and political instability
- State-sponsored intellectual property theft
He also advised retirement boards to avoid investments in any communist-controlled country and to prioritize domestic investments instead.
“Due to these risks and the current geopolitical climate, it is in the best interest of Louisiana’s pensioners and taxpayers that we reevaluate and reduce exposure to adversarial markets,” Fleming stated.
Looking Ahead
The request does not carry the force of law but could influence future investment policy discussions within Louisiana’s pension boards. If adopted, the move could signal a broader trend of geopolitically informed investment strategies by public entities.
A copy of one of Fleming’s letters has been made publicly available for review.
For more information about the Office of the Louisiana State Treasurer, visit treasury.la.gov.