Bill > HR9385

This bill, the Dump Investments in Troublesome Communist Holdings Act (DITCH Act), aims to impose restrictions on the investment in Chinese companies by tax-exempt entities. The key provisions are: 1. Tax-exempt organizations, such as charities and retirement plans, are prohibited from holding any interest in a "disqualified Chinese company" - defined as a company incorporated in China or with over 10% ownership by the Chinese government, Chinese Communist Party, or Chinese nationals. 2. The Treasury Secretary must establish a process for tax-exempt organizations to apply for waivers to hold interests in disqualified Chinese companies, but such waivers can only be granted if the need for the waiver outweighs the threat posed by China and the lack of separation between China and the company. 3. Tax-exempt organizations must annually report to the Treasury Department on any interests they hold in disqualified Chinese companies, including whether they have a waiver. 4. The Treasury Department must publicly report on patterns of U.S. investment in China, including by tax-exempt entities covered by this bill. The bill aims to limit U.S. tax-exempt organizations' financial ties to entities affiliated with the Chinese government or Communist Party, citing concerns about the threat posed by China.