Source: United States Senator for Florida Marco Rubio
Washington, D.C.— U.S. Senators Marco Rubio (R-FL) and John Barrasso (R-WY) introduced legislation that would prohibit multilateral development banks from lending to projects controlled by the People’s Republic of China (PRC) and Chinese Communist Party (CCP). Multilateral banks include the World Bank, Inter-American Development Bank, Asian Development Bank, the African Development Bank, and the European Bank for Reconstruction and Development.
The World Bank and the Asian Development Bank were created to assist developing countries and help eliminate extreme poverty. Despite having access to capital and being one of the world’s largest economies, the PRC is still receiving loans and assistance from both banks. Since China passed the graduation criteria in 2016, the World Bank approved $8.9 billion in loans for projects in China. The Asian Development Bank provided the PRC with $7.6 billion in loans and $1.8 billion in non-sovereign commitments to China during that same timeframe.
Rubio is a senior member of the Senate Committee on Foreign Relations.
Rubio and Barrasso were joined in introducing the bill by Senators Chuck Grassley (R-IA), Cynthia Lummis (R-WY), Rick Scott (R-FL), James Lankford (R-OK), Jim Inhofe (R-OK), Tom Cotton (R-AR), Thom Tillis (R-NC), Mike Braun (R-IN), Ben Sasse (R-NE), John Cornyn (R-TX), John Boozman (R-AR), Marsha Blackburn (R-TN), Tommy Tuberville (R-AL), Jerry Moran (R-KS), and Josh Hawley (R-MO).
“China is no longer a developing nation in need of development loans,” Rubio said. “America’s foreign policy should treat the Chinese Communist Party for what it is: a genocidal regime determined to remake the world in its own authoritarian image. We cannot continue to allow Beijing to exploit international organizations to achieve its objectives.”
“China is the second largest economy and the largest single creditor in the world,” Barrasso said. “There is no reason why China should still be receiving loans from the World Bank or the Asian Development Bank. As China obtains subsidized loans, it is engaging in predatory lending to developing countries across the world. We must refocus international efforts to ensure resources are going to developing countries that need assistance the most. Our legislation ensures the Chinese Communist Party can no longer take advantage of these low-cost loans subsidized by U.S. taxpayers at multilateral development banks.”
“Taxpayer dollars must not be used to enable China’s predatory behavior and humans rights abuses.,” Boozman said.” This bill prevents China from receiving loans meant for countries that deserve these funds to fight poverty and encourage development.”
“The Chinese Communist Party’s efforts to influence and infiltrate institutions and governments around the world is troubling, and the World Bank and other multilateral development banks should not support China’s nefarious One Belt One Road campaign through favorable lending agreements,” Lummis said. “Additionally, as the world’s second largest economy, China long ago ceased to need cheap interest rates in order to survive. The people of Wyoming don’t mind helping those who need it, but the current situation benefits China at the expense of everyone else. I’m proud to join John Barrasso and other Senate colleagues to oppose further lending to China.”
“As the world’s second largest economy, China no longer needs a financial boost from the U.S.-led international economic development system,” Sasse said. “Continuing to send money to Chairman Xi means looking the other way on economic predation, genocide, and tyranny. Americans no longer need to support international subsidization of Xi’s abuse of human rights. We need to halt these loans.”
“China has been lending development money outside its borders to extend its influence for years while taking in U.S. taxpayer dollars via the World Bank and other global institutions,” Grassley said. “What’s worse is that these loans may have helped free up resources used to violate human rights and force Uighurs into internment camps. There’s no reason the world’s second largest economy needs these funds. I’ve led legislative efforts to hold China and the World Bank accountable, and I’m pleased to join Sen. Barrasso and my other colleagues to continue this work. It’s past time to set in statute an American policy that opposes these loans to the communist government of China.”
“Under no circumstance should American taxpayers be on the hook for international loans to Communist China,” R. Scott said. “Beijing is guilty of genocide against the Uyghurs and is arbitrarily arresting pro-democracy activists in Hong Kong. We must protect taxpayer dollars and hold General Secretary Xi accountable for his horrific crimes.”
“China continues to squander resources meant to eliminate poverty and provide assistance to developing countries,” Inhofe said. “When it comes to the world’s finances, I can think of no good reason why they should be able to borrow from the World Bank and Asian Development Bank. We have put up with China’s bullying for far too long and they deserve no special treatment.”
Background:
The bill requires the Secretary of Treasury to instruct the U.S. Executive Director at each of the multilateral development banks to oppose any loan, extension, or technical assistance by the bank to China and to end lending to countries that exceed the criteria for graduating from lending at the bank.
The legislation also creates an annual report to Congress:
- assessing the status of China’s borrowing from the multilateral development banks,
- describing China’s voting power, shares and representation at the banks
- listing countries exceeding the graduation discussion income at each bank,
- listing countries that have graduated from assistance from each bank; and
- describing U.S. efforts to end lending to countries once countries exceed the eligibility requirements.