Following a multi-year effort led by U.S. Senator Marco Rubio (R-FL), the Federal Retirement Thrift Investment Board (FRTIB) finally made a significant decision regarding its investment strategy. The FRTIB, which administers the federal government's 401(k)-style retirement savings program, announced on Tuesday that it will exclude China- and Hong Kong-listed stocks from its portfolio.
The decision to exclude Chinese stocks comes after several years of deliberation and recommendations from the FRTIB's adviser. The agency believes that this move will align with national security interests and address concerns related to China's influence and control over certain companies.
Starting in 2024, the Thrift Savings Plan's international or "I" fund will undergo changes to reflect the exclusion of Chinese stocks. This change aims to provide federal employees with a retirement savings program that aligns with the United States' strategic objectives.