Calls for the United States government to hold China accountable for withholding critical information about the coronavirus are getting louder and louder.
President Donald Trump has now taken the first step to make that happen by ordering billions of dollars in federal retirement money pulled out of Chinese equities, as Fox Business reports.
Administration takes action
According to the letters sent by Trump administration members on this issue, the reasoning behind this move is that it is extremely risky at this point to allow these funds to remain invested in Chinese equities.
In all, roughly $4 billion in federal retirement fund assets from the Thrift Savings Plan are currently placed in these equities.
A letter sent by National Security Adviser Robert O’Brien and National Economic Council Chair Larry Kudlow to Secretary of Labor Eugene Scalia specifically cites Beijing’s handling of the COVID-19 pandemic as a cause for concern. The letter also made reference to the communist regime’s historical oppression of religious minorities and other human rights violations.
A second letter was sent by Scalia to the chairman of the Federal Retirement Thrift Investment Board forwarding the key issues and outlining the “grave concerns” held by O’Brien and Kudlow.
The withdrawal of federal funds from these investments is likely just one of many adjustments the Trump administration is considering so as to put even more pressure on China to answer for its role in allowing the coronavirus crisis to escalate and ravage the world economy.
Chinese state media outlets have reported that leaders in Beijing want to adjust the terms of the previous agreement or invalidate its terms altogether.
When asked directly if he had any interest in renegotiating the deal, President Trump stated, “No, not at all, not even a little bit, no.”
Trump’s position has long been that China has been taking advantage of the United States for far too long, and it is well past time to square up.
In the wake of everything that has happened over the past few months, it’s certainly hard to disagree.