Texas Governor Greg Abbott has ordered state entities to divest all investments in China, impacting major pension funds like the $210 billion Teacher Retirement System of Texas (TRS) and the $78 billion University of Texas/Texas A&M Investment Management Co. (Utimco). Although previous efforts to reduce China exposure had begun, this new mandate raises concerns about the future ability of firms like Two Sigma and Hillhouse to attract investment from Texas. The order reflects increasing geopolitical tensions and aims to protect Texas’s financial security, as public sector investors now face challenges in exiting both public and private market investments tied to China.