Divestment from Threats to the United States

Create an amendment to the New Mexico Constitution that requires the State Investment Council to claw back any investment in any country that is deemed a threat to the United States of America. No further investment in that country will be allowed until that designation of a threat to the United States of America is removed. This includes countries that have against them human right violations and invasions of this country's intellectual properties and the theft thereof. Here are 25 examples of a country that has no business getting investments from the New Mexico State Investment Council. Donald Trump actively countered the Chinese Communist Party (CCP) through sweeping trade tariffs, targeted export controls against Chinese tech firms, sanctions on human rights violators, the closure of Chinese consulates, and the bolstering of Indo-Pacific alliances (like the Quad) to restrict Beijing’s geopolitical reach. [1, 2, 3] A list of 25 key actions taken to counter the CCP includes: Economic & Trade Measures 1. Implemented sweeping tariffs: Placed sweeping tariffs on hundreds of billions of dollars of Chinese imports to combat unfair trade practices. 2. Phase One trade deal: Signed a Phase One trade agreement that required China to enact intellectual property protections and purchase billions in U.S. agricultural goods. 3. Quasi-embargo on Huawei: Placed Huawei and dozens of its affiliates on the U.S. Commerce Department's Bureau of Industry and Security Entity List to cut off access to American semiconductor technology. 4. Targeted telecom restrictions: Enacted the Information and Communications Technology Services (ICTS) Authorities to purge insecure tech from America's internet and communications networks. 5. Hikvision sanctions: Added Chinese surveillance companies, including Hikvision and SenseTime, to the Entity List for facilitating human rights abuses. 6. Banned investment in military companies: Signed an Executive Order blocking U.S. investments in Chinese companies linked to the People's Liberation Army. 7. Delisted Chinese firms: Passed the Holding Foreign Companies Accountable Act, which required Chinese firms to adhere to U.S. auditing standards or face delisting from U.S. stock exchanges. [1, 2, 3, 4, 5] Technology & Cybersecurity 8. Banned ZTE exports: Imposed severe export bans on Chinese telecom giant ZTE for violating U.S. sanctions (later modified). 9. Targeted TikTok: Issued Executive Orders to force ByteDance to divest its TikTok operations or face a ban in the U.S. market. 10. Targeted WeChat: Issued Executive Orders to ban U.S. transactions with WeChat due to national security and data privacy concerns. 11. Clean Network Initiative: Launched the Clean Network program to pressure allies into excluding untrusted Chinese vendors, like Huawei, from their 5G infrastructure. 12. Indicted Chinese hackers: The U.S. Department of Justice indicted numerous Chinese military hackers for state-sponsored cyber espionage against U.S. businesses and government agencies. [1, 2, 3, 4] Human Rights & Democracy 13. Uyghur Forced Labor Act: Signed the Uyghur Human Rights Policy Act to impose sanctions on foreign individuals responsible for abuses in Xinjiang. 14. Hong Kong Autonomy Act: Signed legislation and an Executive Order 13936 stripping Hong Kong of its special autonomous status in response to Beijing's national security crackdown. 15. Sanctioned CCP officials: Sanctioned top Chinese officials—including Carrie Lam—for undermining Hong Kong's autonomy. 16. Sanctioned Xinjiang officials: Imposed Global Magnitsky sanctions on Chinese officials, including Chen Quanguo, over human rights atrocities against the Uyghurs. [1, 2, 3] Diplomacy & Geopolitics 17. Closed the Houston Consulate: Ordered the closure of the Chinese Consulate in Houston, Texas, alleging it was a hub for espionage and intellectual property theft. 18. Strengthened the Quad: Revitalized and elevated the Quadrilateral Security Dialogue (U.S., India, Japan, and Australia) as a strategic counterweight to China in the Indo-Pacific. 19. Strengthened Taiwan relations: Sent high-level cabinet officials to Taiwan and approved new arms sales, violating long-standing CCP red lines. 20. Upgraded Taiwan military access: Allowed Taiwanese officials and military representatives to conduct more open diplomacy with U.S. government counterparts. 21. Freedom of Navigation Operations (FONOPs): Increased the frequency of U.S. Navy transits through the Taiwan Strait and the South China Sea to challenge Beijing’s unlawful territorial claims. 22. Cancelled Fulbright Exchange: Terminated the Fulbright exchange program operating between the U.S., China, and Hong Kong. [1, 2] Defense & Intelligence 23. Revamped the NSS: Issued a National Security Strategy that officially labeled China (along with Russia) as a strategic competitor and revisionist power. 24. Created the Space Force: Established the U.S. Space Force to maintain American dominance and secure space assets against advanced Chinese anti-satellite capabilities. 25. Challenged COVID-19 origins: Held the CCP officially accountable for its lack of transparency regarding the origins and early spread of the COVID-19 pandemic. [1, 2, 3]

Proposed Amendment to the New Mexico ConstitutionArticle XX [New Section] – State Investment Council: [Divestment from Threats to the United States] Section 1. Findings and Purpose.
The people of New Mexico declare that the State Investment Council (SIC), in managing the Land Grant Permanent Fund, Severance Tax Permanent Fund, and all other public funds under its authority, must prioritize the security of the United States of America, the safety of New Mexicans, and the protection of American intellectual property and human rights. Investments that fund adversaries undermine national security, enable human rights abuses, and reward theft of American innovation. This section mandates divestment from designated threats to safeguard public funds and align state investments with U.S. national interests.

sic.state.nm.us
Section 2. Definitions.
A. "Country deemed a threat to the United States" means any foreign nation or entity:
1. Designated by the President of the United States, the U.S. Congress, or a federal agency with authority (such as the Department of Treasury, Department of Commerce, or Department of State) as engaging in activities adverse to U.S. national security, economic security, or foreign policy interests; or
2. Determined by the New Mexico State Investment Council, in consultation with the Governor and Attorney General, to engage in:
- Gross human rights violations, including but not limited to genocide, forced labor, suppression of dissent, or persecution of ethnic/religious minorities;
- Systematic theft or invasion of U.S. intellectual property, trade secrets, or technology through cyber espionage, forced technology transfer, or other means;
- Military aggression, territorial expansionism, or support for entities hostile to the United States; or
- Other actions that materially threaten U.S. sovereignty, alliances, or citizens.
B. "Investment" includes direct holdings, indirect holdings through funds, bonds, equities, real estate, joint ventures, or any other financial exposure managed or overseen by the SIC.Section 3. Mandatory Divestment (Clawback).
A. Upon designation of a country as a threat to the United States under Section 2, the SIC shall:
1. Immediately cease all new investments in that country or any entities domiciled in, controlled by, or primarily benefiting that country.
2. Divest (claw back) all existing investments in that country within a reasonable period, not to exceed 12 months from the date of designation, unless the SIC determines that a shorter period is prudent or that immediate divestment would cause undue financial harm (in which case the SIC must report such determination to the Governor and Legislature).
3. Prohibit any further investment until the designation is formally removed by the designating authority.
B. The SIC shall exercise fiduciary duty under the Uniform Prudent Investor Act while implementing this section, prioritizing risk reduction from geopolitical threats alongside long-term returns.Section 4. Reporting and Transparency.
A. The SIC shall publish an annual report to the Governor, Legislature, and public detailing:
- All investments screened or reviewed under this section;
- Any divestments completed, including estimated financial impact;
- Countries currently designated as threats and the basis for such designations.
B. All SIC meetings addressing divestment decisions shall remain open to the public, consistent with existing transparency practices.

sic.state.nm.us
Section 5. Enforcement.
A. This section is self-executing. Any New Mexico taxpayer or beneficiary of funds managed by the SIC has standing to enforce it through appropriate legal action in state court.
B. The Legislature may enact implementing statutes consistent with this amendment, but no statute may weaken or delay its requirements.
C. If any provision is held invalid, the remainder shall remain in effect.Section 6. Effective Date.
This amendment shall take effect upon ratification by the voters of New Mexico.

Rationale and Notes on the Draft
- Triggers: It ties primarily to federal designations (e.g., entity lists, sanctions, export controls, or congressional actions like those against the CCP referenced in your examples—tariffs, Huawei/ZTE restrictions, Uyghur sanctions, IP theft findings, etc.) for enforceability and deference to national authority. The state can also act if needed.

sourcenm.com
https://sourcenm.com/briefs/nm-state-investment-council-withdraws-8m-in-russian-stocks-and-bonds/

• Examples Alignment: This explicitly covers China/CCP actions you listed (human rights in Xinjiang/Hong Kong, IP theft, military-civil fusion, etc.), as well as others like Russia (on which NM already divested).
• Fiduciary Balance: It acknowledges the SIC's prudent investor role to avoid legal challenges while mandating national security considerations.
  - Process: This is the text that could be introduced as a Joint Resolution in the New Mexico Legislature (simple majority in both houses), then put to voters for simple majority approval.

This draft is a starting point. It can be refined by legislators, attorneys, or stakeholders for legal precision or to address specific concerns.