Indiana fully divests from China, years ahead of state law requirement

Indiana officials announced this week the state has fully divested all public dollars from Chinese companies.

A 2023 law, SEA 268, made Indiana the first state — and still one of only five in the country — to force all public pension funds to divest from any company based in China, or any company controlled by the Chinese government.

Sen. Chris Garten (R-Charlestown), the legislation’s author, cites growing tensions between the U.S. and China as a motivator for the law.

“Removing the possibility of China freezing U.S. assets and harming public employees is simply good policy,” Garten said.
 

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When the law was passed unanimously, Indiana had more than $1 billion invested in Chinese entities. The measure gave the state five years to fully divest, but the Indiana Public Retirement System was able to accomplish it in just over a year.

Brandon is our Statehouse bureau chief. Contact him at bsmith@ipbs.org or follow him on Twitter at @brandonjsmith5.