The bill H. 4697 aims to amend the South Carolina Code of Laws by adding Article 29 to Chapter 1, Title 1, which establishes a prohibition on state agencies, institutions, and political subdivisions from investing, contracting, or expending public funds with Chinese companies. Specifically, it prohibits any state agency, including the State Treasurer and the Retirement System Investment Commission, as well as political subdivisions like school districts, from investing public funds in Chinese companies. Additionally, it restricts these entities from entering into contracts or expending public funds with such companies.

Furthermore, the bill stipulates that the Department of Commerce cannot offer or award any incentives or development grants to Chinese companies. It also requires any company receiving incentives from the Department of Commerce to sign a statement affirming that they will not contract with any company that is prohibited from receiving such incentives. The bill defines "Chinese company" and outlines what constitutes an "incentive" or "development grant," ensuring clarity in its enforcement. The act will take effect upon approval by the Governor.