Representative Dusty Johnson Introduces Legislation to Restrict State Funds from Supporting Chinese Communist Party

Strategic Insights -

Representative Dusty Johnson, a Republican from South Dakota, has introduced the PRC Accountability and Divestment Act of 2023, which aims to allow states to prohibit state funds from financing the Chinese Communist Party's (CCP) activities. This move is a response to growing concerns about the CCP's threat to national security and human rights. Governor Kristi Noem, also of South Dakota, has endorsed the legislation, citing the state's experience with the CCP's aggression.

Key Takeaways:

  • The PRC Accountability and Divestment Act of 2023 allows states to divest taxpayer funds from China by providing them with the authority to prohibit investments within the People's Republic of China (PRC).
  • The bill also offers a safe harbor for changes of investment policies related to the PRC and permits fiduciaries of Employee Retirement Income Security Act (ERISA) plans to divest plan assets from the PRC.
  • Representative Johnson's bill is cosponsored by U.S. Representatives John Moolenaar (R-MI), Rob Wittman (R-VA), Ashley Hinson (R-IA), and Carlos Gimenez (R-FL).
  • This legislation follows previous similar bills, including the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 and the Sudan Accountability and Divestment Act of 2007.

Statistics:

  • In 2010, Congress passed the Comprehensive Iran Sanctions, Accountability, and Divestment Act.
  • In 2007, Congress passed the Sudan Accountability and Divestment Act.
  • There is no specific data on the amount of state funds invested in CCP-linked companies.

Sources:

  • [1] Rep. Dusty Johnson's news release (November 30)
  • [2] Congress.gov (2010) For the Comprehensive Iran Sanctions, Accountability, and Divestment Act
  • [3] Congress.gov (2007) For the Sudan Accountability and Divestment Act