Chinese Firms Can Get Investment from Federal Employees

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Millions of federal employees can invest in Chinese companies sanctioned by the U.S. government via its flagship retirement plan, even though these companies have been branded a danger to national security or are accused of profiting from forced labor or other human rights abuses, Newsweek has learned.

Since June 2022, the federal government's employee retirement plan—the largest in the world with $720 billion in assets—has offered its 6.8 million members the option to invest some of their savings in an account containing about 5,000 mutual funds, some of which have holdings in Chinese companies that are on at least nine U.S. government sanctions or watch lists, according to an exclusive analysis for Newsweek by Washington D.C.-based consulting firm Kilo Alpha Strategies, using data from the Coalition for a Prosperous America.