CHARLESTON — State Treasurer Larry Pack intends to propose policies to divest state funds from Chinese companies, with the goal of prioritizing West Virginia’s interests and responsible financial management.

In a press release Monday, Pack said he will propose to the Board of Treasurer Investments a plan to review all state short-term investments, identify any investments in Chinese owned or controlled companies, and divest state tax dollars from those companies. Pack will propose that plan at the board’s next meeting on Feb. 25.

The Board of Treasury Investments is a five-member board chaired by Pack with Gov. Patrick Morrisey as vice chairman and three directors including Auditor Mark Hunt.

The board was created by the Legislature in 2005 to manage the state’s short-term investments.

According to the most recent statement available, the board had more than $11 billion in assets under management since July 2023.

In an interview Monday morning in his office at the Capitol, Pack said he had been considering the issue of divestment from Chinese companies since joining the administration of former Gov. Jim Justice, first as his senior adviser and later as acting cabinet secretary of the Department of Revenue.

“It’s never made sense for me that the state of West Virginia should invest taxpayer money, taxpayer funds, in companies owned by the Chinese Communist Party,” Pack said. “At the same time, I believe you need to be really prudent and not make quick decisions and so forth. So, I felt like that this is a good time to take that step with the Board of Treasury Investments and we will present that to the board on Feb. 25 to deliberate with that.”

If the board of directors approve Pack’s plan, the treasurer will present a similar plan to the state Investment Management Board when he becomes the chairman in July of the Board of Trustees. Investment Management manages the state’s long-term investments and public employee pension funds. According to its December report, the board has more than $6 billion in assets

“At that point, I will ask the staff to evaluate the same policy, same procedures, and then at some point we’ll consider putting that on the agenda and put it before the board,” Pack said. “We have had some conversations with the IMB. The board is well versed in looking at a lot of different options, a lot of different issues. The end game is to hopefully get us in a position where there will be zero taxpayer dollars, zero pension assets, and investment in companies owned by either the Chinese Communist Party or the Chinese military.”

Several states are considering similar divestment policies. Texas is the most recent where Gov. Greg Abbott issued an order in November to state agencies to begin divesting funds from Chinese companies.

Also in November, state financial officers from 15 states wrote a letter to the manager of public pensions to begin divestment, citing unreliability of financial audits and statements from Chinese-linked companies, alleged stock manipulation by the Chinese government and the placement of military and intelligence officials in Chinese companies, among other issues.

“It’s a growing movement,” Pack said. “We’ve looked at what other states have done, and we see the communication. States, of course, take different approaches. We know additional states are looking at it. Again, it’s almost a return to common sense. Why would we want to invest in companies and the Chinese Communist Party if they’re working against our interests.”