South Dakota Governor Kristi Noem Endorses Legislation to Prevent State Funds from Supporting Chinese Communist Party

Strategic Insights -

Governor Kristi Noem, a vocal critic of the Chinese Communist Party (CCP), has endorsed legislation introduced by Congressman Dusty Johnson (R-SD) to allow states to prevent state funds from supporting the CCP's agenda. The PRC Accountability and Divestment Act of 2023, which was introduced in November 2023, aims to empower states to divest taxpayer funds from China and prohibit investments in CCP-backed linked companies.

Key Takeaways:

  • The PRC Accountability and Divestment Act of 2023 allows states to make decisions to divest taxpayer funds from China and prohibit investments within the People's Republic of China (PRC).
  • The bill specifically provides state and local governments with the authority to divest assets from and prohibit investments within the PRC.
  • The legislation also provides a safe harbor for changes of investment policies related to the PRC and allows fiduciaries of Employee Retirement Income Security Act (ERISA) plans to divest plan assets from the PRC.
  • Governor Noem and Congressman Johnson have been working together on the legislation, which has gained support from states that have previously passed similar legislation to divest from states or countries deemed a threat to the United States or committing human rights atrocities.
  • The legislation is seen as a way to protect South Dakota and the nation from the threat posed by the CCP.

Statistics:

  • In 2010, Congress passed the Comprehensive Iran Sanctions, Accountability, and Divestment Act, which supported state and local actions to divest from states that are a threat to the United States or committing human rights atrocities.
  • In 2007, Congress passed the Sudan Accountability and Divestment Act, which also supported state and local actions to divest from states deemed a threat to the United States or committing human rights atrocities.

Sources:

  • "South Dakota Governor Kristi Noem Endorses Legislation to Prevent State Funds from Supporting Chinese Communist Party." News release from the office of Governor Kristi Noem, November 30, 2023.