During a recent meeting of the North Dakota Senate Appropriations - Government Operations Division, lawmakers engaged in a critical discussion regarding the state's investment strategy, particularly concerning investments in China. The meeting, held on April 7, 2025, highlighted the complexities of balancing state investment portfolios with national security concerns.

The committee addressed a proposed amendment that would require the state to divest from certain Chinese investments. A representative from the state investment team clarified that while they currently hold approximately $22 million in direct investments in China, they do not believe divestment is necessary at this time. The representative emphasized that their investment strategy adheres to both state and federal guidelines and undergoes rigorous internal and external audits.

Senator Dwyer raised concerns about the implications of continued investments in China, questioning whether the state should take a more aggressive stance on divestment. The investment team responded that they would have already divested from any companies identified as foreign adversaries by the Office of Foreign Assets Control, indicating that their current investments are deemed safe and profitable.

The discussion also touched on the broader economic relationship between the United States and China, with some senators expressing the need to maintain trade ties while being cautious about national security. The committee ultimately moved to approve the amendment, signaling a willingness to adapt the state's investment strategy while considering the ongoing dialogue about foreign investments.

As the state navigates these complex issues, the decisions made in this meeting will have lasting implications for North Dakota's investment landscape and its approach to foreign investments. The committee's actions reflect a careful consideration of both economic benefits and potential risks, underscoring the importance of informed policymaking in the realm of state finance.