New Jersey Assembly Bill A1335

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Prohibits investment by State of pension and annuity funds in Chinese pharmaceutical companies.

Impact

If enacted, this bill would compel the New Jersey State Investment Council to divest from any current holdings in Chinese pharmaceutical companies, which is defined as companies primarily operating out of the People's Republic of China and are predominantly owned by Chinese citizens or the state. Furthermore, the bill requires ongoing oversight and documentation of these investments, with annual reports detailing compliance provided to the legislature.

Summary

Assembly Bill A1335 aims to prohibit the investment of state pension and annuity funds in Chinese pharmaceutical companies. The bill highlights concerns that the COVID-19 pandemic, which has resulted in the loss of lives and economic hardship, was exacerbated by Chinese governmental actions that allegedly concealed the risks associated with the virus. The bill sponsors claim that it is fundamentally unjust to reward companies with state investments that are perceived to have contributed to the global health crisis.

Contention

The A1335 bill has the potential to spark significant debate surrounding economic relations between the United States and China, especially considering the critical nature of pharmaceuticals and healthcare. Critics may argue that this bill could lead to unintended consequences, such as reducing the diversification of the state's investment portfolio and limiting opportunities for beneficial partnerships with the global pharmaceutical industry. Supporters, however, emphasize the need for states to assert control over their investments and align them with national security interests.