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Last week, Pennsylvania took a historic step forward, securing $70 billion in federal, state, and private funding to become America's powerhouse for artificial intelligence and energy. Convening at the artificial intelligence (AI) powerhouse, Carnegie Mellon University, a bipartisan group--led by Senator Dave McCormick, with President Trump delivering the keynote address--joined by Senator John Fetterman and Governor Josh Shapiro, among many others launched Pennsylvania's Innovation and Energy Summit. All uniting in purpose to announce a bold vision for Pennsylvania's technological revival, refurbishment and reimagining the opportunities for defunct steel mills to power the next generation of AI.
More can be done to accelerate the change, namely, Ohio and Alaska have successfully pioneered state-based sovereign wealth funds, securing and accelerating their ecosystem by channeling investments back into local economies and infrastructure. Pennsylvania should follow suit, establishing its own sovereign fund to drive continuous economic renewal and ensure the state's technological leadership endures for decades.
Yet, success is not only building, it is also about recognizing the state's own unforced errors. As we celebrate this moment, Pennsylvania faces a critical decision. Even as we celebrate Pennsylvania's new leadership in AI and energy, the state must confront a troubling contradiction: Tens of millions from the state's pension funds and university endowments remain invested in China, directly empowering a rival working tirelessly against American interests.
Since Future Union's release of last year's "Rubicon Report," five states -- Texas, Florida, Missouri, Indiana and Kansas -- have announced they will cease investing in Chinese private equity funds, and Pennsylvania now has an opportunity to do the same. As disclosed, between 2018 to 2022, U.S. pensions and university endowments funneled a staggering $146.1 billion into Chinese private equity, nearly half of it in the last three years alone. Top Pennsylvania institutions like Carnegie Mellon, the University of Pittsburgh, and the University of Pennsylvania are key contributors to this alarming trend.
This isn't just poor economics -- it's a national security crisis. China systematically uses American investments to dominate technologies critical to our future: artificial intelligence, biotechnology, and quantum computing. These private equity and venture capital investments offer Beijing access to sensitive intellectual property, networks, and technology, posing severe threats to American innovation and security.
TikTok's rise provides a chilling example, collecting vast amounts of user data and potentially influencing public opinion. The threat is real, tangible, and growing daily.
Fortunately, states are fighting back. Texas recently became the fifth state to ban pension fund investments in Chinese-owned entities, adding momentum in prioritizing financial responsibility. Governor Greg Abbott's decisive action sets a strong example for others to follow.
Now, Pennsylvania stands at a crossroads. It can either rest on the laurels of this week's summit or seize the moment by eliminating risky investments in China and redirecting those funds toward Pennsylvania's own booming technology sectors. By divesting from Chinese entities, Pennsylvania can protect retirees' savings from volatile and opaque markets where profits disappear overnight at Beijing's whim. Instead, reinvesting these assets locally will fuel reliable returns, innovation, and job growth.
This moment demands bipartisan courage and clear-eyed strategy. The geopolitical threats -- from Ukraine and the Middle East to the South China Sea--underscore the urgent need for states to align their economic power with national interests. Pennsylvania can lead this vital effort, demonstrating that American prosperity and security go hand in hand.
Pennsylvania has an opportunity to create a private fund channeling its own pension and endowment resources back into local economies, driving sustainable economic renewal and securing our technological leadership for decades. And as a proud Pittsburgh native advising on technology-driven economic revitalization, I believe deeply in Pennsylvania's potential. However, real issues need to be addressed demanding confronting difficult truths and eliminating self-defeating errors.
The choice is clear: Will Pennsylvania leaders join these five states in taking the lead in divesting from China, while investing in our own promising future, or will they continue funding America's principal adversary? History will judge our state's response to this critical moment. Let's ensure Pennsylvania chooses wisely and boldly.
Andrew King is general partner at Bastille Ventures, investing in critical technology furthering national security, and the founder and president of Future Union, an organization working with leading financial firms and the private sector to combat state espionage and intellectual property theft. The organization advises Congress, the Select Committee on China, Departments of Treasury and Commerce, and the White House. Formerly he was the general counsel of the Dallas Stars NHL team, a corporate lawyer at Goodwin Procter and investment banker at JPMorgan.