On November 21, while Americans had just concluded the quadrennial presidential election and were preparing for the next political transition, Texas Governor Greg Abbott issued an executive order directing all state government agencies to cease investments in China and swiftly withdraw capital from the country. This move aims to protect Texans from the influence of the Chinese Communist Party.
In his letter, Governor Greg Abbott solemnly pointed out that the Chinese Communist Party’s aggressive actions in the southeastern Pacific region have caused instability and financial risks for investments. Therefore, all public sector investments in China must undergo more cautious evaluation. As a result, Abbott believes that Texas must protect its public finances from any potential threats, with the most pressing threat coming from China.
In fact, Greg Abbott’s decision can be seen as highly foresighted. With Donald Trump taking office, significant changes in trade relations between the U.S. and China are inevitable — this includes increased pressure on the Chinese market. During his campaign, Trump repeatedly signaled that he would continue the policies from his previous term and impose greater pressure on China to protect the U.S. market.
As a result, if China were to take countermeasures, these investments within China would likely become the primary targets of the Chinese government.
Approximately 4% to 6% of Texas’s annual state government revenue comes from investments. These investments are managed through the Texas Treasury Safekeeping Trust Company (TTSTC), which oversees various funds allocated to different investment projects. For example, in the 2024 fiscal year, nearly $4 billion of Texas’s revenue was generated from government investments. Considering the ongoing U.S.-China rivalry, withdrawing critical government funds from China at this moment would be the most prudent choice. This move would help the state avoid exposing its financial resources to significant geopolitical risks and allow it to seek safer and more stable investment markets.
In addition, Greg Abbott issued three other executive orders. These include directing the Texas Department of Public Safety to investigate “Chinese agents” and deport individuals who assist the Chinese Communist Party in carrying out “transnational repression” back to China. Abbott also instructed all public educational institutions to strengthen their systems to protect critical infrastructure, intellectual property, and personal information from infiltration by hostile nations.
Finally, Abbott directed the State Emergency Management Department and the Texas Public Utility Commission to be prepared and strengthen defenses against potential threats from hostile nations targeting Texas’s infrastructure.
Unity: The Great Tradition of the Lone Star State
The governor has fired the first shot against the threat from China on behalf of the state. This move not only demonstrates the resilience and sharp insight of Texans but also reflects the great tradition of Texas. During the North American colonization and the early stages of the nation’s founding, Texas was once an independent republic. For this reason, Texas is also known as the “Lone Star State.” This unique historical background has instilled in Texans a distinct sense of national identity and a strong sense of unity, enabling them to stand firmly together when defending their rights.
Texans have consistently united to confront external threats. For example, in recent years, Chinese enterprises and capital have aggressively infiltrated the U.S., purchasing American farmland and attempting to control key production resources, thereby establishing footholds within the country. It was Texas legislators who first recognized this issue and sounded the alarm for the entire nation.
As early as 2021, Texas passed the Lone Star Infrastructure Protection Act, which prohibits the state government from engaging in critical infrastructure-related transactions with companies from four potential adversarial nations, including China. Building on this foundation, in response to the aggressive influx of Chinese capital, state senators further introduced Senate Bill 147, aiming to completely block China and other hostile nations from purchasing Texas farmland. Although this bill ultimately failed to pass the House vote, it successfully raised public awareness about the threat of Chinese capital infiltration.
Texas is home to numerous military bases. According to state government data, there are currently 15 active military installations within Texas, contributing over $150 billion to the economy. Additionally, Texas is the energy powerhouse of the United States, producing the largest amount of oil and natural gas in the country.
Beyond energy, Texas is also a hub for America’s cutting-edge industries and technology sectors. This includes NASA and the Lyndon B. Johnson Space Center located in Houston. The southern city of Austin has earned the nickname “Silicon Hills” due to the concentration of major corporate headquarters like Dell and Oracle, as well as semiconductor fabs operated by companies such as Infineon and NXP, rivaling California’s Silicon Valley. Even Texas Instruments proudly carries the state’s name.
In 2023, Texas contributed $445 billion in export value to the United States through its strong production performance, accounting for nearly 22% of the nation’s total exports. As a result, Texas must naturally exercise greater caution when assessing potential threats from China. If excessive Chinese infiltration and aggression are allowed to harm Texas’s environment, it would not only negatively impact Texas residents but also severely undermine the entire U.S. high-tech industry, dealing a significant blow to national security. This is the primary reason why the governor issued multiple executive orders specifically targeting China.
Concession Gains Nothing; Strength Secures Victory
Texas’s policy not only fired the first shot in taking a hardline stance against China but also sent a signal of unity to the people. The American public must understand that appeasement and constant concessions in the face of China’s threats will only make China more arrogant and aggressive. They will deploy more spies to infiltrate our cities and neighborhoods and launch more frequent cyberattacks.
At the same time, their capital will continue to infiltrate our daily lives, gradually purchasing our factories and land. Our investments in them will only make them stronger — they will use our money to support Chinese workers and develop advanced technologies, which will, in turn, pose an even greater threat to the United States.
The courage and unity of Texans have provided us with a powerful example. Only with unwavering determination and a firm stance can we truly protect our industries and defend our nation. When more states begin to follow Texas’s lead, the Chinese Communist Party will be forced to yield under immense economic pressure and choose to engage in negotiations, ultimately allowing us to secure victory in this trade war.
