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Arizona Public Fund Divestment from Chinese Entities

The Arizona Divestment from Chinese Companies Act prohibits publicly managed funds from holding investments in companies connected to the People's Republic of China, including those owned or controlled by the Chinese government or military. Publicly managed funds are required to begin divesting from these prohibited holdings immediately, completing the process within one year. Exceptions are made if the investments constitute less than one percent of the fund's total value and if divesting would incur excessive costs. The act also provides immunity and indemnification for funds acting under this legislation, ensuring they are protected from legal liabilities related to divestment decisions. The overarching goal is to halt funding to entities linked to the Chinese government amid increasing economic and military tensions.1