This bill aims to restrict the investment of Arkansas's pension and retirement system funds in entities that have close ties to the People's Republic of China and its governing Communist Party. The legislation emphasizes the need to safeguard the state's financial resources from being allocated to organizations that may pose a risk due to their connections with the Chinese government.

The new legal language introduced in the bill clearly outlines its purpose, which is to limit these investments specifically. By doing so, the bill seeks to ensure that Arkansas's pension and retirement funds are not inadvertently supporting entities that could undermine the state's interests or values.