North Richmond Today

On Aug. 1, Congressman Rob Wittman (VA-01) took a stand to safeguard American interests from the influence of the Chinese Communist Party (CCP) by introducing the DITCH Act. The bill aims to compel tax-exempt entities to divest from Chinese companies or risk losing 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, according to an Aug. 1 press release. “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.” 

According to the press release, Rep. Wittman, along with the House Select Committee on the Chinese Communist Party, introduced the DITCH Act aims to address Chinese Communist Party influence and financial ties and prevent tax-exempt American entities from inadvertently aiding the People's Liberation Army and supporting the CCP's techno-totalitarian agenda. To this end, the bill would force tax-exempt entities like non-profits, university endowments, and public pension plans to divest from Chinese companies or risk losing their tax-exempt status.

The DITCH Act defines disqualified Chinese companies based on various ownership criteria allowing the Treasury Secretary to grant waivers to select non-profit entities if their asset retention needs in China outweigh national security concerns. Transparency is emphasized through the requirement to publicize waiver justifications and for entities granted waivers to submit regular reports. The Act also mandates the Treasury Secretary to publish reports detailing outbound investment patterns into China and was introduced in the 117th Congress, with Sen. Josh Hawley leading a companion legislation in the Senate.

It has been alleged that some universities and non-profits have invested in Chinese companies like Hikvision, ZTE, China Mobile, SenseTime, Megvii, and others.

Rep. Wittman recently discussed the risks of U.S. investments in Chinese companies controlled by the Chinese Communist Party (CCP) during an Aug. 1 interview on 'Cavuto: Coast to Coast' on Fox Business. During the interview, he highlighted his co-sponsorship of the Chinese Military and Surveillance Company Sanctions Act, which aims to prevent U.S. capital from supporting Chinese military companies listed on relevant U.S. government blacklists. Wittman stressed the need for firmness with China, asserting that American dollars should not contribute to CCP's military modernization or human rights violations. "We cannot be facilitating that by massive investments into Chinese Communist Party military modernization, because that's like feeding the wolf that's going to eat us," Wittman said during the interview. 

According to Augusta Free Press, Wittman was appointed to the House Republican China Task Force in June 2021. Following the release of its comprehensive report, the Task Force has been focused on bipartisan efforts to address various issues related to China, including investigating the CCP's handling of COVID-19 origins, safeguarding vital supply chains, and upholding U.S. military and diplomatic strength.