{"id":42139,"date":"2023-11-04T20:15:25","date_gmt":"2023-11-04T20:15:25","guid":{"rendered":"https:\/\/innodebt.com\/politics\/mccormick-wants-the-us-to-divest-from-china-as-a-hedge-fund-manager-he-oversaw-investments-in-chinese-companies\/"},"modified":"2023-11-04T20:15:27","modified_gmt":"2023-11-04T20:15:27","slug":"mccormick-wants-the-us-to-divest-from-china-as-a-hedge-fund-manager-he-oversaw-investments-in-chinese-companies","status":"publish","type":"post","link":"https:\/\/innodebt.com\/?p=42139","title":{"rendered":"McCormick wants the US to divest from China. As a hedge fund manager, he oversaw investments in Chinese companies"},"content":{"rendered":"
\n

\n In Republican David McCormick\u2019s second bid for US Senate in Pennsylvania, he has rebranded himself as a Trumpian-hardliner on China, sounding the warning bells on US economic ties with China.\n <\/p>\n

\n However, as the head of the world\u2019s largest hedge fund, McCormick oversaw massive investments into US exchange traded Chinese companies and holdings, according to a CNN KFile review of the hedge fund\u2019s holdings.\n <\/p>\n

\n \u201cWe need to stop investing in China, and I know something about investing, put restrictions on portfolio investment or direct investment that aids the CCP or the Chinese military,\u201d McCormick said on Hugh Hewitt\u2019s podcast earlier this month.\n <\/p>\n

\n At a House select committee on China hearing in September 2023, McCormick testified that while he was CEO of the billion-dollar hedge fund Bridgewater Associates, he held \u201cdeep reservations\u201d about doing business with the country.\n <\/p>\n

\n \u201cAs CEO, I had a fiduciary responsibility to our shareholders and our clients to maximize returns in line with their needs. I held deep reservations about Bridgewater\u2019s exposure to the moral and patriotic hazards of doing business in China,\u201d McCormick said in September 2023 before officially launching his campaign.\n <\/p>\n

\n Under McCormick\u2019s leadership from 2017 through 2021, Bridgewater Associates disclosed holdings in US exchange traded Chinese companies grew from $1.6 million in the second quarter of 2017 to $1.77 billion in the final quarter of 2021, according to filings to the US Securities and Exchange Commission reviewed by CNN\u2019s KFile.\n <\/p>\n

\n That amounts to a 108,000% increase in Chinese holdings over a five-year period. In 2017, Bridgewater reported investing in just one US exchange traded Chinese company; by the final quarter of 2021, its holdings included 47 Chinese companies.\n <\/p>\n

\n During McCormick\u2019s leadership at Bridgewater, at least one of the hedge fund\u2019s invested companies had ties to human rights violations and abuses in the country and has been blacklisted by the US government. Another has partnered with a state-run company the US government prohibits US investments in.\n <\/p>\n

\n McCormick\u2019s about-turn on China policy comes as the Republican Party continues to distance itself from neoliberal foreign policy to become more hawkish on China and as he tries to shed his own pro-China image.\n <\/p>\n

\n The West Point graduate and Treasury undersecretary for international affairs under the Bush administration once welcomed Chinese investment, saying in September 2007 that \u201cwhen China succeeds, the United States succeeds.\u201d\n <\/p>\n

\n McCormick faced fierce criticism over his ties to China when he ran for the Republican nomination in 2022. He lost the primary to Republican Dr. Mehmet Oz by fewer than a thousand votes. Oz lost to Democrat John Fetterman, the state\u2019s former lieutenant governor.\n <\/p>\n

\n McCormick\u2019s hedge fund also held an additional $779 million indirectly in Chinese companies through their investments in exchange traded funds. And Bridgewater launched a China-focused investment fund in 2018 for investors that grew to $6.15 billion by March 2022.\n <\/p>\n

\n Elizabeth Gregory, a spokeswoman for the McCormick campaign, told CNN, \u201cDave\u2019s views on China have been well documented for years, and he\u2019s consistently spoken out \u2013 including against [Bridgewater founder] Ray Dalio \u2013 about the growing risk posed by the Chinese Communist Party and its rise.\u201d\n <\/p>\n

\n She added that McCormick has outlined a plan to confront China by securing supply chains, stopping US companies from funding the Chinese military or human right abuses, and holding the country responsible for \u201cthievery\u201d and abuses of US intellectual property.\n <\/p>\n

\n The campaign also pointed to McCormick\u2019s House testimony from September 2023 in which he directly called for Congress to restrict investment in sectors related to national security.\n <\/p>\n

\n CNN reached out to Bridgewater Associates but did not receive a response.\n <\/p>\n

\n McCormick resigned as CEO of Bridgewater Associates in early 2022 to run for office.\n <\/p>\n

\n Among Bridgewater\u2019s Chinese holdings at the time, at least one had ties to human rights abuses in the northwestern region of Xinjiang and another had ties to the Chinese military.\n <\/p>\n

\n One of the subsidiaries of an energy company Bridgewater invested in was added to a US trade blacklist in June 2021 after they \u201cwere implicated in human rights violations and abuses in the implementation of China\u2019s campaign of repression, mass arbitrary detention, forced labor\u2026. against Uyghurs\u201d and other Muslim minority groups in the northwestern region of Xinjiang.\u201d\n <\/p>\n

\n The company and China fiercely denied committing rights violations in the region.\n <\/p>\n

\n After the blacklist, Bridgewater Associates more than doubled its shares in the parent company, increasing its investment by 1.7 times between the second quarter of 2021 and the final quarter of the year.\n <\/p>\n

\n Bridgewater also bought shares in a credit services company one year after the US Commerce Department blacklisted its parent company in May 2020 for \u201csupporting procurement of items for military end-use in China.\u201d\n <\/p>\n<\/p><\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

In Republican David McCormick\u2019s second bid for US Senate in Pennsylvania, he has rebranded himself as a Trumpian-hardliner on China, sounding the warning bells on US economic ties with China. However, as the head of the world\u2019s largest hedge fund, McCormick oversaw massive investments into US exchange traded Chinese companies and holdings, according to a […]<\/p>\n","protected":false},"author":1,"featured_media":42140,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[39],"tags":[],"class_list":{"0":"post-42139","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-politics"},"yoast_head":"\nMcCormick wants the US to divest from China. 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