The proposed bill aims to amend various laws concerning actions related to certain foreign entities, specifically targeting institutions associated with the People's Republic of China. It mandates that state-supported institutions of higher education with a Confucius Institute or similar entity will have their funding withheld. Additionally, these institutions are prohibited from investing in Chinese funds and must certify annually that they do not have any prohibited institutions. The bill also prohibits municipalities from forming sister city relationships with certain foreign parties defined as "prohibited foreign parties," and requires the termination of any existing sister city agreements with such entities.
Furthermore, the bill establishes strict regulations on public investment entities, prohibiting them from investing in Chinese companies or restricted investment products. It outlines reporting requirements for these entities to identify and disclose any investments in Chinese companies, and mandates a divestment plan if such investments are found. The bill includes provisions for exemptions related to private equity and venture capital investments made before its effective date, while also providing immunity to state officials and public investment entities from civil liability concerning the removal of assets under this legislation.