WASHINGTON, D.C. – Congressman Rob Wittman (VA-01) today joined colleagues on the House Select Committee on the Chinese Communist Party (CCP) to introduce the Dump Investments in Troublesome Communist Holdings Act (DITCH Act). This bill would force non-profits, university endowments, public pension plans, and any other tax-exempt entity to divest from Chinese companies or lose their tax-exempt status.
“The Chinese Communist Party is the threat of our lifetime, and we must do everything we can to counter Beijing’s malicious agenda,” said Rep. Rob Wittman. “American universities, foundations, and other tax-exempt entities should not receive preferential treatment if they choose to finance a genocidal communist regime. I'm proud to join my colleagues in introducing this critical piece of legislation to ensure we prioritize American interests over profiting off the Chinese market.”
To prevent tax-exempt American entities from aiding the People's Liberation Army and helping the CCP finance its techno-totalitarian state, the DITCH Act:
- Defines disqualified Chinese companies as any company:
- Incorporated or based in China
- Has more than 10 percent of the stock (by vote or value) owned by some combination of Chinese entities
- Is directly or indirectly owned by a Chinese entity, including through a derivative instrument or other contractual arrangements
- Allows the Treasury Secretary to grant a waiver to certain non-profit entities if their need to hold certain Chinese assets outweighs the national security risk
- Requires the Secretary to publicize the reasoning
- Requires entities granted a waiver to submit a regular report
- Requires the Treasury Secretary to publish a report within 360 days and then annually describing the patterns of outbound investment into China generally, including a sectoral breakdown
The DITCH Act was also introduced in the 117th Congress. Sen. Josh Hawley (R-MO) is leading companion legislation in the Senate.
Read the full bill text here.
