Bill · S. 2046· Senate(119-S-2046)
No China in Index Funds Act
- Introduced
- 6/12/2025
- Last activity
- 6/12/2025 — Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Sponsored by
- Pete Ricketts
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
The "No China in Index Funds Act" aims to prohibit index funds from investing in Chinese companies. An index fund is defined as an investment company or hedge fund designed to track an index of securities. The bill defines a Chinese company through several criteria, including incorporation in the People's Republic of China or being controlled by its government. If an index fund already holds such an investment at the time the law starts, it has a 180-day period to divest. Violators of this prohibition are subject to civil penalties.
Yes
Does this give the federal government more power?+2
The bill expands the regulatory authority of the SEC and federal oversight regarding investments in Chinese entities.
The opposite· 3 of 5
Does this make trade with other countries easier?-3
By restricting investments in Chinese companies, the bill may disrupt established international trade and investment patterns.
Is this likely to grow the economy?-2
The restriction on index fund investments may reduce market liquidity and diversification, potentially hindering overall economic growth.
Does this give people more protection from unfair business practices?-1
Investors in index funds may face reduced diversification and potential changes in fund performance.
Who it would affect, and how
Potential Positive Impacts for People
- Divestment Window: The bill provides a 180-day safe harbor for index funds that already hold investments in Chinese companies at the time of enactment, allowing them time to adjust their holdings. (Section 3(b))
Potential Negative Impacts for People
- Civil Penalties: Any person who violates the prohibition on investing in Chinese companies faces a civil penalty of up to $250,000 or twice the amount of the transaction. (Section 3(c))
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Improves Economic Growth-2Improves Consumer Protection-1
- National Security And Foreign Policy
- Improves International Trade-3
- Demographic And Interest Groups
- Good For Middle Class Households-1Good For Retirees-1
- Governance And Ideology
- Increases Federal Power+2
- 6/12/2025
- Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Introduced in Senate