Pension Funds Should Divest KKR-Owned Cue Group, Says UFCW; New UFCW website details Cue’s collaboration with Chinese surveillance agency

WASHINGTON, April 15, 2022–(BUSINESS WIRE)–The United Food and Commercial Workers International Union is calling on public pension funds invested in KKR Asian Fund III to divest Cue Group, a Chinese artificial intelligence company that has worked with a branch of the Ministry of Public Security, the body that oversees the surveillance system in China.1

“We believe it is fundamentally wrong for public employee pensions to fund any collaboration with China’s repressive surveillance state,” UFCW international vice president David Young said in letters delivered to the funds. state pensions from Oregon and Florida, among others.

A new website called KKRChinaExposed.com and prepared by UFCW documents how Cue jointly developed surveillance technology in 2020 with a government lab run by the Ministry of Public Security’s China First Research Institute.2

The website also documents Cue’s ownership, Cue’s technology, and details about the premier research institute’s role in China’s surveillance apparatus.

A February survey published by The China Wire obtained Chinese government lab confirmation of Cue’s collaboration, while KKR and Cue denied it and removed website references to it.3

The China Wire quoted a corporate ethics expert as saying: “If the holding company of a private equity firm is working with the Chinese surveillance apparatus, he says, ‘there could hardly be a more direct link between their investment and human rights abuses”.

Cue is a portfolio company of KKR Asian Fund III, which is managed by KKR & Co. [NYSE: KKR].

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1
The China WireThe Surveillance Stake, https://www.thewirechina.com/2022/02/20/the-surveillance-stake/
2 https://www.36kr.com/newsflashes/3280086532097
3 The China WireThe Surveillance Stake, https://www.thewirechina.com/2022/02/20/the-surveillance-stake/

See the source version on businesswire.com: https://www.businesswire.com/news/home/20220415005141/en/

contacts

Courtney Alexander, UFCW Research Service, [email protected] 631-834-4681