/Trump Weighs China Investing Ban

Trump Weighs China Investing Ban

President Trump is weighing his options for punishing the Chinese government for its handling of the 2019-2020 coronavirus pandemic.

Among the possible retaliatory measures include punishing tariffs and an investing ban. (Forbes)

The latest are threats of coronavirus pay-back tariffs and reported bans on the iFund — a $50 billion government retirement account holding money for ex-military — from benchmarking to an MSCI Index which holds China securities.

The Thrift Savings Plan, the $700 billion government employee 401(k) system, is said to be switching from the MSCI EAFE Index to invest in the MSCI All-Country World Index (ACWI), which has about 4% in China stocks. This switch would be for the iFund, held by retired military personnel .

The Sinclair Broadcasting Group reported Thursday that insiders close to the president said he was considering an executive order to ban the switch to the MSCI ACWI, which had around $337 million invested in Alibaba (BABA), the only China stock in the indexes top 10 holdings and its biggest investment.

Opponents to the investment shift include Senator Marco Rubio (R-Fla) and Jeanne Shaheen (D-NH), who believe U.S. military should be investing in Chinese companies that are sanctioned or were once banned from doing business with the U.S.