Future Fund exposed to 50 high-risk Chinese companies

The Federal Opposition is calling on the Government is calling on the Government to act in response to an audit which it says has identified that the Future Fund has investments in at least 50 high risk Chinese companies.

The shadow minister for Home Affairs, Victorian Liberal Senator, James Paterson claimed the Chinese companies posed serious human rights and national security concerns with22 companies associated with the Chinese Communist Party or the People’s Liberation Army.

Paterson said he had launched the audit in August through Senate Questions on Notice do determine the nature and extent of the Future Fund’s investments in China.

“No Australian would want their taxpayer dollars or retirement savings to be inadvertently funding national security threats to our country or supporting companies facilitating serious human rights abuses,” he said.

“The Future Fund invests according to the law and seeks the best return on its investments on behalf of Australian taxpayers as its ultimate beneficiaries.”

“It is incumbent on the Albanese government to act to prevent taxpayer dollars and Australians’ retirement savings from being invested in companies that threaten Australia’s national interest.”

“If our national sovereign wealth fund is so dangerously exposed, it is highly likely that other Australian investment funds – most notably in the superannuation sector – will also be at serious risk,” Senator Paterson said.

“If the government is serious about protecting the national interest then it should seriously consider limiting outbound investments on national security grounds, or at least provide guidance to investors to reduce this risk.”

Senator Paterson said that of the 119 companies listed, an audit has revealed that there are 50 companies that pose national security or human rights risks: 22 posed potential security risks via direct or indirect association with the Chinese government or military, 14 posed human rights concerns due to associations with Xinjiang province and the oppression of the Uyghur minority population and 14 could be linked to investments in state actors like Russia, Iran and North Korea.

“Some of these companies had overlapping concerns across these categories and another six companies had other ethical or governance related concerns,” his statement said.