{"id":2066982,"date":"2023-10-14T03:07:04","date_gmt":"2023-10-14T07:07:04","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/vanguard-funds-invest-in-chinese-military-companies-report-says\/"},"modified":"2023-10-14T03:12:27","modified_gmt":"2023-10-14T07:12:27","slug":"vanguard-funds-invest-in-chinese-military-companies-report-says","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/vanguard-funds-invest-in-chinese-military-companies-report-says\/","title":{"rendered":"Report: Vanguard Funds Invest in Chinese Military Firms"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fvanguard-funds-invest-in-chinese-military-companies-report-says%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2066982&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><blockquote>\n<h2>The Vanguard Group Invests in Chinese Military \u200cand Forced Labor, Report Says<\/h2>\n<p>The Vanguard Group, one of the world&#8217;s largest \u200basset\u200c managers,\u200c has been found to invest in Chinese military groups \u200cand companies associated\u2063 with forced labor through its index funds, according to \u200ba new report. This \u2064revelation \u2064comes as\u2064 the \u200bTreasury Department\u2063 finalizes rules related\u2062 to a White House \u2064executive \u200border \u200bthat restricts\u2063 certain outbound investments \u200bto \u200bChina.<\/p>\n<p>Vanguard&#8217;s\u2064 flagship emerging markets index fund,\u2063 valued at $70 billion, includes 60\u200b companies on the Chinese military\u200d company sanction \u200blist by the Office of Foreign Assets Control (OFAC). Additionally, Vanguard \u2063funds hold shares in eight Chinese\u2063 companies sanctioned for <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/israeli-owned-spyware-firms-blacklisted-by-us-commerce-department-over-national-security-risks\/\" title=\"US Commerce Department blacklists Israeli spyware firms due to national security risks.\">human \u2063rights abuses<\/a> in \u200bChina&#8217;s Xinjiang\u200c region, which \u200dthe U.S. State \u2063Department has identified as\u2062 a\u200d genocide.<\/p>\n<h3>Related Stories<\/h3>\n<ul>\n<li><a href=\"http:\/\/www.theepochtimes.com\/china\/taiwanese-businessman-loses-2-2-million-investment-due-to-forced-demolition-in-china-5508901?ea_src=author_manual&#038;ea_med=related_stories\"><strong>Taiwanese Businessman Loses $2.2-Million Investment Due to Forced Demolition in China<\/strong><\/a>  &#8211; 10\/13\/2023<\/li>\n<li><a href=\"http:\/\/www.theepochtimes.com\/china\/chinas-infrastructure-investment-could-tumble-next-experts-5508192?ea_src=author_manual&#038;ea_med=related_stories\"><strong>China&#8217;s Infrastructure Investment \u200cCould Tumble Next: Experts<\/strong><\/a>  &#8211; 10\/11\/2023<\/li>\n<\/ul>\n<p>The \u200dreport did not provide a comprehensive\u2064 list of Vanguard&#8217;s investments in Chinese \u200bmilitary\u2062 companies,\u2062 but it \u2063did disclose a total of $100 million invested in three such groups.<\/p>\n<p>While these investments are legal, the\u2064 Coalition for a Prosperous America (CPA) \u200bis urging Congress to address \u2062this issue, stating\u2063 that the U.S.\u200d government&#8217;s weak response has allowed asset management industry greed to overshadow investor protection, national security, and human rights concerns.<\/p>\n<p>Representative Mike Gallagher, chair of the House Select Committee\u200b on \u200cthe \u2063Chinese Communist Party (CCP), emphasized the need to stop American capital from\u200d flowing to \u2064China and\u2063 investing in \u2062blacklisted CCP-connected companies. He stated, &#8220;If \u200bwe accept the status quo, we are willfully fueling\u2063 our own destruction.&#8221;<\/p>\n<p>Congressional scrutiny \u2062of Wall\u2062 Street&#8217;s role in financing Chinese military companies has\u2063 been increasing. Just three \u200dmonths ago,\u200d Rep. Gallagher&#8217;s committee launched\u200c an investigation\u200b into \u200cBlackRock and MSCI \u200cfor channeling funds to\u2064 Chinese companies involved in \u200bbuilding weapons for the Chinese military. The\u2062 committee estimated that BlackRock&#8217;s \u2064investments amounted\u2063 to \u2064$429 million \u2063against American interests.<\/p>\n<p>In response to \u2064the report, BlackRock closed its China-focused offshore\u200d fund, requiring shareholders to\u200c redeem \u200ctheir shares before the fund&#8217;s liquidation. Vanguard, on \u200bthe other hand, maintains\u2064 compliance with all applicable\u200b laws and regulations and welcomes additional clarity from \u2064policymakers.<\/p>\n<p>In \u200bAugust, President Joe Biden issued an\u2062 executive order prohibiting outbound investments to China in \u200dcertain industries. The Treasury Department has published preliminary rules, which exempt\u2062 index funds\u200c from \u2064the restrictions. The public commentary period for these rules has closed.<\/p>\n<\/blockquote>\n<p> <\/p>\n<h2> \u200cWhat are the \u200dethical implications of Vanguard&#8217;s investments in\u2062 companies with ties to the Chinese military and forced labor?<\/h2>\n<p><span>  Tories&#8221;><strong>China&#8217;s Infrastructure Investment Could \u200dTumble Next, Experts Say<\/strong><\/a>  &#8211; 10\/12\/2023<\/li>\n<\/ul>\n<p>The report, \u2063released by non-profit organizations\u200c Committee on the \u2062Present Danger: China and PROTECT, \u2063highlights the extent \u2064of \u2062Vanguard&#8217;s investments in companies with\u2063 ties to \u200bthe Chinese\u2064 military and forced labor. \u2063It raises concerns about\u200c the ethical implications of investing in such institutions and the potential support of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/just-like-the-good-old-days-joe-biden-invades-syria-with-convoy-of-us-troops-and-choppers-on-first-full-day-as-president\/\" title=\"Just Like the Good Old Days: Joe Biden Invades Syria with Convoy of US Troops and Choppers on First Full Day as President\">human rights abuses<\/a>.<\/p>\n<p>Vanguard\u200d is known for its\u2064 <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/retirements-of-millions-of-americans-in-jeopardy-as-esg-rule-weakens-protections\/\" title=\"Retirements of Millions of Americans in \u2018Jeopardy\u2019 as ESG Rule Weakens Protections\">passive index funds<\/a>, which track various \u2064benchmarks.\u200d It is estimated that Vanguard&#8217;s emerging markets index fund allocates approximately \u200d28% of its total\u200d assets to Chinese companies, making it one \u2063of \u200cthe largest\u2064 investors in China. While Vanguard argues that its index funds are designed\u200b to replicate the performance of a specific\u2062 index\u200c and do not involve active investment decisions, critics argue that \u200bby including these companies in their funds, Vanguard is indirectly\u200b supporting \u200bactivities that go against ethical standards.<\/p>\n<p>The \u200bissue of forced \u200blabor in China&#8217;s\u200b Xinjiang region has\u2062 gained significant attention\u2062 and condemnation from the international community. The Chinese government has been \u2064accused of detaining more than one million Uighur Muslims and other ethnic minority groups in\u2064 reeducation camps and subjecting them to forced \u200blabor. Reports\u200d of\u200b surveillance, indoctrination, and \u200chuman rights abuses have led to calls for action against those \u2063involved in supporting these\u200c activities.<\/p>\n<p>The inclusion of companies associated with forced\u200b labor and the \u200cChinese military in Vanguard&#8217;s index funds raises questions about the due diligence conducted by asset managers. While Vanguard is not alone in\u200b investing in these companies, due to the \u200dsize and influence of its funds, \u200dits investments are \u2063significant and warrant scrutiny. Some argue that Vanguard should \u2063take greater responsibility in assessing the ethical implications of its holdings and \u2064actively work\u200b towards divesting from such companies.<\/p>\n<p>This \u200breport \u200ccomes\u2064 at a time when governments, including\u2064 the United States, are reevaluating their relationships with China \u2063and imposing \u2064restrictions on certain investments. The finalization \u2062of rules related \u2062to the White\u2064 House executive order \u200brestricting investments to China further emphasizes the need for asset managers to be \u200baware of the companies in which they invest and the potential consequences of such investments.<\/p>\n<p>The Vanguard Group has yet\u200b to publicly respond \u200dto the report&#8217;s findings. However, the revelations may prompt a reassessment of \u200cthe company&#8217;s\u200c investment strategies and \u2063policies. \u200dInvestors \u2064and stakeholders may demand greater transparency and\u2064 accountability from Vanguard and other asset managers, pushing \u200bfor\u2064 more responsible investment practices that align \u2062with ethical and\u2064 human rights standards.<\/p>\n<p>The\u2064 issue\u2062 of investing\u200b in companies linked to forced labor and\u200b the Chinese military highlights the complex ethical considerations faced by asset managers. As the world becomes\u200d increasingly\u200d interconnected, investment\u2062 decisions can have\u2063 far-reaching implications. It is crucial for investors, regulators, and the \u200dpublic to be vigilant and hold \u2063asset managers \u200baccountable for their investment \u2063practices\u2062 to \u2063ensure they align \u2062with \u2063global\u200c ethical standards.<\/p>\n<p>The Vanguard Group&#8217;s investments in Chinese military \u200bgroups and companies associated with forced labor\u2064 raise important questions\u200d about the role of asset\u200d managers in promoting ethical \u2062investment practices. As individuals\u200b and institutions alike continue to navigate\u200c the complicated \u2063landscape of global investing, it is essential to evaluate the potential consequences of \u200cinvestment decisions and \u200ddemand greater transparency\u2062 and accountability from those who \u200cmanage our investments.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Vanguard Group, a major asset manager, has been found to invest in Chinese military groups and forced labor-linked companies through index funds, according to a recent report. This revelation coincides with the Treasury Department&#8217;s finalization of rules related to a White House executive order that restricts certain outbound investments to China. Vanguard&#8217;s flagship emerging markets fund holds $70 billion.<\/p>\n","protected":false},"author":238,"featured_media":2066983,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2066982","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2066982","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/238"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2066982"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2066982\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2066983"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2066982"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2066982"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2066982"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}