Bill > S5178

This bill, the Dump Investments in Troublesome Communist Holdings Act (DITCH Act), aims to restrict tax-exempt entities, such as charities and retirement funds, from investing in certain Chinese companies. Specifically, the bill prohibits these entities from holding any interest in a "disqualified Chinese company," which is defined as a corporation incorporated in China or with more than 10% of its stock owned by the Chinese government, Chinese Communist Party, or Chinese nationals. The bill provides a waiver process for organizations to apply for an exemption, but the Secretary of the Treasury can only grant a waiver if the need for the investment outweighs the threat posed by China and there are extenuating circumstances. Additionally, the bill requires annual reporting by affected organizations and the publication of a list of certified investment funds that do not have exposure to the prohibited Chinese companies.