White House warns Railroad Retirement Board that its Chinese investments pose national security risk

White House officials on Wednesday warned the federally administered Railroad Retirement Board that its funds have been invested in Chinese concerns that pose both security risks to the United States and economic risks to the American workers whose money is being invested. 

United States National Security Advisor Robert O'Brien and National Economic Council Director Larry Kudlow said in a letter on Wednesday to RRB Chairman Erhard Chorlé that the board's investments in companies located in the People’s Republic of China “present a national security risk to our country,” as well as a “significant and unnecessary economic risk” to railroad retirees.

The letter, a copy of which was obtained by Just the News, states that the investment portfolio—managed by the National Railroad Retirement Investment Trust—has funds invested in numerous businesses which "operate in violation of U.S. sanctions laws and assist the PRC’s efforts to build its military and oppress religious minorities."

Among those companies are “military contractors that provide military aircraft, missiles, and telecommunications support to the People’s Liberation Army,” the letter states. The federal officials specifically cited Hikvision, a Chinese technology firm that “manufactures surveillance equipment that China uses to oppress religious minorities." 

They also cited investments in ZTE, a Chinese telecommunications corporation which they said is “engaged in a multi-year conspiracy to supply, build, and operate telecommunications networks in Iran using U.S.-origin equipment in violation of the U.S. trade embargo.”

ZTE, they said, has also violated U.S. sanction laws by shipping telecommunications equipment to North Korea.

In addition to security concerns, the letter states that the retirement board’s investments come at a time of “mounting uncertainty concerning the PRC’s relations with the rest of the world,” particularly as China faces potential sanctions and boycotts over its handling of the COVID-19 pandemic as well as its “suppression of Hong Kong’s democracy,” its “gross human rights violations,” and its flouting of U.S. sanctions in Iran.

The letter asks that the board “carefully consider” the situation and possibly order the National Railroad Retirement Investment Trust to “take swift action to protect” retirees whose money is being invested in China.

The officials have asked for a response by July 15.