“Tax-exempt entities that invest in CCP-directed companies are not only profiting off of genocide, destroying the environment, and financing the PLA’s ability to build weapons that can kill Americans, but are also making U.S. taxpayers unwittingly subsidize it. This has to stop.”
Congressional Republicans will introduce legislation later Thursday to revoke the tax-exempt status of non-profit organizations that invest in Chinese firms.
Wisconsin Rep. Mike Gallagher’s bill, the DITCH Act, prohibits non-profit organizations from investing in firms with major ties to China. Missouri Sen. Josh Hawley is introducing companion legislation in the Senate. Many Republican candidates and elected officials have expressed increased concern with Chinese-American economic entanglement, arguing that such dealings constitute a threat to national security.
The Dump Investments in Troublesome Communist Holdings (DITCH) Act requires non-profits to sell off their holdings in companies incorporated or primarily based in China. Other covered companies include those with at least ten percent Chinese ownership. Non-profits may apply with the Treasury Secretary for waivers if their need to hold Chinese assets “outweigh[s] the threat posed to the United States by China and the lack of separation between China and the disqualified Chinese company involved.”
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