AUSTIN, Texas -- The University of Texas said it will decline donations for its new China Policy Center from a Hong Kong-based foundation with ties to a Chinese Communist Party branch in charge of promoting propaganda abroad.

Gregory Fenves, president of UT's flagship Austin campus, made the decision after an internal review. The story was first reported in the Washington Post's opinion section.

A letter earlier this month from Republican Sen. Ted Cruz warned the university about accepting money from the China-United States Exchange Foundation, which he called a “pseudo-philanthropic foundation.” Cruz argued that associating with the group could hurt UT's academic credibility.

Fenves said he made the decision after speaking with faculty experts on U.S.-China relations, as well CIA and FBI officials.

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Information from: Austin American-Statesman.