Source: United States Senator for Wyoming John Barrasso
WASHINGTON, D.C. – Today, U.S. Senator John Barrasso (R-Wyo.) led 21 senators in introducing bipartisan legislation to end lending to the Chinese Communist Party from multilateral development banks, including the World Bank and Asian Development Bank.
The World Bank and the Asian Development Bank were created to promote economic growth in developing countries and eliminate extreme poverty. Despite having access to capital and being the second-largest economy in the world, China is still receiving loans and assistance from both banks.
Since meeting the criteria for graduation from lending in 2016, the World Bank approved $9.6 billion in projects to China. The Asian Development Bank provided China with $10.6 billion in loans and $2.4 billion in non-sovereign commitments in China during that same timeframe.
“China is the world’s second-largest economy, yet it continues to profit off World Bank and Asian Development Bank loans largely funded by American taxpayers,” said Senator Barrasso. “While China obtains subsidized loans, it is engaging in predatory lending to developing countries across the world. As the largest contributor to these banks, the United States has a duty to make sure our money and resources are going to countries that need it most, not China. It’s time to stop sending Americans’ hard-earned tax dollars to the Chinese Communist Party. This legislation will put an end to lending to China and help refocus the development mission of the multilateral development banks.”
Cosponsors of this legislation include U.S Senators Joe Manchin (D-W.Va.), Chuck Grassley (R-Iowa), Cynthia Lummis (R-Wyo.), Thom Tillis (R-N.C.), Mike Lee (R-Utah), Jerry Moran (R-Kan.), Rick Scott (R-Fla.), Bill Hagerty (R-Tenn.), Eric Schmitt (R-Mo.), James Lankford (R-Okla.), Marsha Blackburn (R-Tenn.), Josh Hawley (R-Mo.), Marco Rubio (R-Fla.), Tom Cotton (R-Ark.), Mike Braun (R-Ind.), Kevin Cramer (R-N.D.), Roger Marshall (R-Kan.), Bill Cassidy (R-La.), Mike Rounds (R-S.D.), John Hoeven (R-N.D.) and Shelley Moore Capito (R-W.Va.).
Summary:
This bill requires the Secretary of Treasury to instruct the U.S. Executive Director at each of the multilateral 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.
The legislation 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, and
• 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.
Background:
On September 21, 2022, the Senate, in a 96-0 vote, approved an amendment declaring that China is not a developing country and should not be treated as such by the international community.
On October 26, 2021, Senator Barrasso questioned Brent Neiman, President Biden’s nominee to be the Deputy Under Secretary of the Treasury for International Finance and Development, on ensuring the administration takes action to stop multilateral development banks from lending to China.
Senator Barrasso secured provisions to end funding for China at the World Bank and Asian Development Bank in the Strategic Competition Act of 2021. On June 8, 2021, the language was included in S. 1260, which passed the Senate on June 8, 2021 (Sec. 3219D and Section 3219E).
Senator Barrasso originally introduced this legislation in the 117th Congress.
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