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 importance of safeguarding state funds from potential risks associated with investments in these entities.

The new legal language inserted into the current law clearly outlines the purpose of the act, which is to limit such investments. This initiative reflects a growing concern regarding the influence and practices of the Chinese government and seeks to ensure that Arkansas's financial resources are not inadvertently supporting entities that may conflict with the state's values or interests.