1. Short title This Act may be cited as the Dump Investments in Troublesome Communist Holdings Act or as the DITCH Act . 2. Restriction on investment in Chinese companies by tax-exempt entities (a) In general Section 501 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (s) Restriction on investment in Chinese companies (1) In general An organization shall not be treated as described in subsection (c) or (d) or section 401(a) for any taxable year if— (A) such organization holds any interest in a disqualified Chinese company at any time during such taxable year, or (B) fails to timely transmit the annual report described in paragraph (5) for such taxable year. (2) Disqualified Chinese company For purposes of this subsection— (A) In general The term disqualified Chinese company means any corporation— (i) that is incorporated in China, or (ii) more than 10 percent of the stock of which (determined by vote or value) is held (directly or indirectly through any chain of ownership) by any of the following (or combination thereof): (I) 1 or more corporations described in clause (i). (II) China or any governmental agency thereof. (III) Provincial, regional, municipal, Special Administrative Regions, prefecture, county, township, village, or any other Chinese sub-national governmental entity or agency. (IV) Any entity controlled (directly or indirectly) by the Chinese Communist Party or any Chinese Communist Party organ. (V) Any Chinese national. (B) Application to entities other than corporations In the case of any business organization which is not a corporation, subparagraph (A) shall apply to such organization in the same manner as though such organization were a corporation. (C) Application to indirect, derivative, or other contractual interests, etc For purposes of this subsection, an organization shall be treated as holding an interest in a disqualified Chinese company if such organization— (i) holds such interest (or any instrument described in subparagraph (A))