NASHVILLE, Tenn. – Gov. Bill Lee has signed legislation by State Rep. Rusty Grills, R-Newbern, to protect the Volunteer State from financial risks posed by the Chinese Communist Party (CCP). The new law directs the Tennessee Consolidated Retirement System (TCRS) and political subdivision pension plans to divest from any holding that is known to be […]
NASHVILLE, Tenn. – Gov. Bill Lee has signed legislation by State Rep. Rusty Grills, R-Newbern, to protect the Volunteer State from financial risks posed by the Chinese Communist Party (CCP).
The new law directs the Tennessee Consolidated Retirement System (TCRS) and political subdivision pension plans to divest from any holding that is known to be majority-owned by the government of China, the CCP, the Chinese military or any of the nation’s instrumentalities.
“Investing in Chinese-owned companies poses a serious threat to the Volunteer State’s financial and security interests,” said Grills. “This new law will protect Tennesseans’ pocketbooks and ensure public pensions prioritize American interests. This is a critical step in our efforts to fight China’s dangerous influence. I thank Governor Lee for his continued support and I remain committed to putting Tennesseans first.”
The governing boards of the TCRS and other pension plans across the state will be required to review their holdings annually, beginning in 2026, to ensure no entity is majority-owned by China. If a restricted investment is found, boards are directed to divest from that holding or create a written divestment plan.
The TCRS does not currently invest in holdings majority-owned by China, and this new law will ensure that political subdivision pension plans adhere to the same policy.
President Donald Trump in February released an America First Investment Policy highlighting China’s efforts to steal the intellectual property and cutting-edge technology of American companies. The memorandum says China exploits American investors to modernize and finance its military.
At least 15 other states have chosen to divest from Chinese holdings, citing security, transparency and geopolitical concerns.
Tennessee Republicans have prioritized protecting the Volunteer State from Chinese influence. Lawmakers this year approved legislation to protect DNA from foreign adversaries and ensure the state is disconnected from China’s illegal organ harvesting practices. In 2024, Republicans built on efforts to protect Tennessee property from being purchased by hostile foreign nations like China.
State Rep. Rusty Grills of Newbern represents District 77 in the Tennessee House of Representatives, which includes Dyer, Lake and part of Obion counties.