Gov. Sanders, lawmakers unveil anti-China legislative package

Gov. Sarah Sanders outlined Wednesday (Feb. 26) the Communist China Defense legislative package, a group of bills that will divest state resources from China and ban foreign adversaries from buying land around critical infrastructure like military bases and electric substations. It will also shorten the amount of time a banned company has to divest.

Other bills that will be forthcoming will forbid state purchases of promotional items made in China, halt lobbying on behalf of Chinese companies, and stop Arkansas cities from partnering with Chinese communities in the Sister Cities International exchange program.

The state will withhold funding from colleges and universities that have a Confucius Institute or similar institute related to the People’s Republic of China, including Chinese cultural centers, and prohibit state-sponsored colleges and universities and entities from investing in China.

“President (Donald) Trump is the first president in my lifetime to take a hard line against Communist China, and we are proud to support that work in Arkansas by getting Communist China off our land and out of our state,” said Sanders. “Once I sign this legislation into law, Chinese Communist Party-linked companies will be banned from owning property near critical infrastructure, and lobbying on behalf of Communist China, Russia, and other foreign adversaries will no longer be allowed in the state of Arkansas. My administration is putting America and Arkansas first.”

Sanders and the legislature passed a law last session that banned companies linked to the Chinese Communist Party (CCP) and other foreign adversaries from owning farmland and property in Arkansas.

“The Chinese Communist Party isn’t going away anytime soon,” said Sanders. “In my first year in office, I was proud to be the first governor in the country to kick China off our farmland and out of our state.

“The threat is real and the enemy is here. They’re targeting state governments, military bases, industrial sites, and every other facet of American society. And with President Trump back in the White House, I’m afraid they’re only going to try harder to undermine our country.”

“I am championing the ‘Made in America’ so promotional items should not be coming from China. I think that makes sense,” said Rep. Mindy McAlindon, R-Centerton, who will co-sponsor the package. “Why would we be giving our money, our hard-earned money from Arkansans, to the Chinese government or to the Chinese CCP?”

Rep. Howard Beaty Jr., R-Crossett, who will also co-sponsor the package, said the investment withdrawals from the state and state-supported institutions will likely be affected most by the bill’s restrictions on investments in Chinese companies or investment funds.

“Probably the largest outcome is the redirect of the investment strategies that some of our retirement systems,” Beaty said. “When it comes to international markets, I understand that you try to spread and hedge, but an international index fund is going to have a large portion in Chinese investments. They’re too big of a player in the world economy.”

He said there is yet to be a confirmed analysis of how much money the state might have to divest in order to comply with this law if it passes. He did say if it will cost a significant portion of money — for instance, if there is a loss in a fund at the time required for divestiture — the new law will allow for some exceptions.

“I think that will change the overall investment strategy of a lot of these organizations,” Beaty said. “But we don’t know how much money that could affect yet. I think they’re still looking and searching.”