Sen. Mastriano legislation would divest Pennsylvania from China

On Monday, Pennsylvania Sen. Doug Mastriano (R-Chambersburg) introduced legislation that would divest all of the state’s holdings in companies controlled by the Chinese Communist Party (CCP).

The legislation is supported by State Treasurer Stacy Garrity.

“Due to serious concerns about geopolitical risk involving China, as well as the country’s record of serious human rights abuses, I directed my investment team to divest all of Treasury’s holdings in China in the first half of 2022,” Garrity said. “I believe it would be smart to do the same across all Commonwealth funds, and I applaud Senator Mastriano for introducing this legislation.”

Senate Bill 1141 would require the state treasurer, the State Employees’ Retirements System (SERS) and the Public School Employees’ Retirement System (PSERS) to divest their holdings in companies that are controlled by the CCP.

Mastriano’s office said Chinese President Xi Jinping and the Chinese government have been accused of committing a wide-range of human rights violations, including attacks and persecution of the Uyghurs and other Muslim minorities. Additionally, Mastriano’s office said, much of the fentanyl that has killed Pennsylvanians in recent years was manufactured in China.

“The CCP has used force and aggression to commit genocide against Uyghur Muslims, methodically erode self-rule in Hong Kong, weaken democracy in Taiwan, and abuse basic human rights in Tibet,” Mastriano said. “We want our two public pension systems – SERS and PSERS – to enhance their earnings, but not by investing in companies that benefit a regime that routinely commits human rights violations,” Mastriano said.