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Restrictions on Tax-Exempt Entities' Investments in Chinese Companies

New rules aim to limit investments by U.S. tax-exempt organizations in Chinese companies. If an organization invests in such a company, it risks losing its tax-exempt status. The goal is to protect U.S. interests and reduce reliance on Chinese entities.
Key points
Tax-exempt organizations (e.g., charities, some pension plans) will be prohibited from investing in certain Chinese companies to maintain their tax-exempt status.
The act defines which Chinese companies are restricted, including those controlled by the Chinese government or Communist Party.
Waivers for investments may be granted in exceptional circumstances, requiring proof that the benefits outweigh the risks to the U.S.
The government will publish lists of funds without exposure to restricted Chinese companies and reports on U.S. outbound investments in China.
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Expired
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Additional Information
Print number: 117_HR_9385
Sponsor: Rep. Gallagher, Mike [R-WI-8]
Process start date: 2022-12-01
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

DITCH Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_9385.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2022-12-01.

What are the main provisions?

Key points include:

  • Tax-exempt organizations (e.g., charities, some pension plans) will be prohibited from investing in certain Chinese companies to maintain their tax-exempt status.
  • The act defines which Chinese companies are restricted, including those controlled by the Chinese government or Communist Party.
  • Waivers for investments may be granted in exceptional circumstances, requiring proof that the benefits outweigh the risks to the U.S.
  • The government will publish lists of funds without exposure to restricted Chinese companies and reports on U.S. outbound investments in China.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Gallagher, Mike [R-WI-8].

What is the latest detailed status?

The latest detailed status is: Introduced in House

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-28.

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Taxes Economy Security