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 with a Confucius Institute or similar entity must have their funding withheld and requires these institutions to certify annually that they do not host such institutes. Additionally, any existing Confucius Institutes must be abolished by December 31, 2025. The bill also prohibits state-supported institutions from investing in Chinese companies or restricted investment products, as well as from forming sister city relationships with certain foreign parties defined as "prohibited foreign parties."

Furthermore, the bill establishes strict regulations on public investment entities, prohibiting them from investing in Chinese companies or restricted investment products and requiring them to divest from such investments within a specified timeframe. It includes provisions for reporting and mandatory divestment, as well as exemptions for certain private equity and venture capital investments made prior to the bill's effective date. The bill also provides immunity for state officials and public investment entities from civil liability related to the divestment actions mandated by this legislation.