FIRST ON FOX: As President Donald Trump prepares to meet with Chinese leader Xi Jinping about the future of artificial intelligence, two top House Republicans are warning that the Chinese Communist Party is "throwing gasoline on the fire" by undermining America's effort to build out AI infrastructure. In a new letter disclosed to Fox News Digital, House Ways and Means Committee Chairman Jason Smith, R-Mo., and House Select Committee on the Chinese Communist Party Chairman John Moolenaar, R-Mich., asked Treasury Secretary Scott Bessent and IRS Chief Executive Officer Frank Bisignano to determine whether money has been funneled from overseas through America’s charitable system to block the data centers needed for the U.S. to compete with China. Specifically, they raised questions about hundreds of millions of dollars that American-born communist tech tycoon Neville Roy Singham pumped into nonprofits and organizations that are now among the leading organizations fighting data center development throughout the country.
Recipients of Singham's largesse include the Party for Socialism and Liberation and the ANSWER Coalition, both self-described pro-China communist groups. Earlier this month, activists from both groups carried signs in a Chapel Hill, N.C., protest, merging anti-Trump sentiments with support for communist Cuba and opposition to data centers and AI development, including the message, "SHUT IT DOWN!" "Under no circumstances can we allow an adversary, and our most serious competitor in AI infrastructure, to weaponize our own tax code and harm an emerging American industry," the lawmakers wrote in the letter, sent on Tuesday. FROM AUSTIN TO NEW YORK, PRO-CHINA NETWORK FUELS WEEK OF ANTI-US PROTESTS AS XI MEETS TRUMP The lawmakers allege that influence operations linked to China are exploiting tax-exempt organizations, nonprofit networks and social media campaigns to fuel opposition to the data centers needed to power America’s AI industry.
The lawmakers urged the agencies to investigate whether tax-exempt organizations connected to the network have operated for the "private or political benefit of foreign-aligned interests" and whether donor-advised funds and intermediary entities were used to "launder the origin of foreign-directed money into American advocacy." A Fox News Digital investigation found that Singham funneled $285 million since 2017 to six U.S. nonprofits, including his wife Jodie Evans' group, CodePink, through two shell corporations and a donor-advised philanthropy fund run by Goldman Sachs, which said it closed the Singham account in 2024. The nonprofits have functioned with tax-deductible status while actively involved in promoting communist regimes such as China, coordinating street protests and fomenting anti-American rage. They have denied being part of any foreign influence operation, and Singham hasn't responded to requests for comment.
Smith said China is helping fuel opposition to American artificial intelligence infrastructure by giving a base to Singham as he funds U.S. nonprofit groups involved in anti-data-center protests. "This is the Chinese helping throw the gasoline on the fire," Smith told Fox News Digital. "The American people need to know that this is not just an organic movement." Smith said Americans have legitimate concerns about data centers, including their effect on electricity costs and water usage.
But he said foreign-backed organizations shouldn't be allowed to exploit those concerns to slow U.S. technological development. Smith said that "the Chinese want to stall and slow down the advancement of AI in the United States because they want to win the AI war." "Tax exempt is a privilege. It is not a right," Smith said.
"We need to make sure that we’re not subsidizing tax dollars to help create hostility and unrest in our country." Smith also called for greater transparency regarding the flow of money among organizations connected to Singham. He added that the broader issue extends beyond the tax code and could include questions about compliance with the Foreign Agents Registration Act violations. "Transparency is the biggest thing," he said.
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