Johnson Leads Bill to Block State Investments in Communist China

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Johnson Leads Bill to Block State Investments in Communist China 

Washington, D.C. – Today, U.S. Representative Dusty Johnson (R-S.D.) introduced legislation to allow states to prohibit state funds from bankrolling the threat posed by the Chinese Communist Party (CCP); Governor Kristi Noem endorsed the legislation.

“America should not help advance the CCP agenda, especially with state funds,” said Johnson. “My bill empowers states to divest their investment dollars from CCP-linked companies. South Dakota understands the threat of the CCP, and I am grateful for Governor Noem’s leadership and partnership to protect our state from their communist regime.”

Throughout the summer, Governor Noem and Congressman Johnson held several conversations about this legislation and how it would benefit both South Dakota and the nation. In December 2022, Governor Noem wrote to congressional leadership calling for legislation like what Congressman Johnson is introducing.

“I am grateful that Congressman Johnson sees the national security threat that China poses,” said Governor Kristi Noem. “Protecting South Dakota from nations that hate America has been a priority of mine as Governor, and I am glad that he is doing the same in Congress.”

The PRC Accountability and Divestment Act of 2023 is cosponsored by U.S. Representatives John Moolenaar (R-MI), Rob Wittman (R-VA), Ashley Hinson (R-IA), Carlos Giménez (R-FL).

The PRC Accountability and Divestment Act of 2023 allows states to make the decisions to divest taxpayer funds from China. Specifically, this bill:

  • Provides State and local governments with the authority to divest assets from and prohibit investments within the People’s Republic of China (PRC);
  • Provides State and local governments with a safe harbor for changes of investment policies related to the PRC; and,
  • States a fiduciary of an Employee Retirement Income Security Act (ERISA) plan may divest plan assets from the PRC.

Congress has previously passed similar legislation supporting state and local actions to divest from states that are a threat to the United States or committing human rights atrocities. In 2010, Congress passed the Comprehensive Iran Sanctions, Accountability, and Divestment Act. In 2007, Congress passed the Sudan Accountability and Divestment Act.

Read full bill text here.

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3 thoughts on “Johnson Leads Bill to Block State Investments in Communist China”

  1. The sound of one hand clapping……the nicker of a horse and bark of a dog emanating from a dog and pony show. Cannot get a farm bill done, but this is a close 22nd.

  2. the faster we get back to a sane cohesive national security policy the better. trump’s whipsaw off-the-hip improvising left real needs unaddressed.

  3. Like enquirer, I thought Trump had a confusing and and inconsistent foreign policy and I believe, China took this to be a sign that they could safely expand their influence to Viet Nam, Hong Kong, and Taiwan. Now, we’ve got another confusing policy…States cannot invest in Red China, but private companies and individuals may, and the federal government can offer all kinds of economic incentives to China.

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