The 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 must not have a Confucius Institute or similar entity, with funding being withheld if they do not comply. Additionally, these institutions are required to certify annually that they do not have such institutes and must abolish any existing ones by December 31, 2025. The bill also prohibits these institutions from investing in Chinese companies or restricted investment products.

Furthermore, the bill establishes restrictions on municipalities forming sister city relationships with prohibited foreign parties, defined as entities from countries subject to International Traffic in Arms Regulations. It also includes provisions that prevent public investment entities from investing in Chinese companies or related financial products, requiring them to divest from such investments within a specified timeframe. The legislation outlines reporting requirements for public investment entities to identify and report any investments in Chinese companies, ensuring compliance with the new regulations.