Source: United States Senator for Louisiana Bill Cassidy
WASHINGTON – U.S. Senators Bill Cassidy, M.D. (R-LA), John Barrasso (R-WY), and 21 Senate colleagues introduced a bipartisan bill to end lending to the Chinese Communist Party from multilateral development banks, including the World Bank and Asian Development Bank. This bill requires the U.S. Department of the 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.
“The international community should not be financing the Chinese Communist Party. Doing so is turning a blind eye to their human rights abuses and slave labor in Xinjiang,” said Dr. Cassidy. “This bill prevents these banks from enabling China any further.”
“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.”
The legislation creates an annual report to Congress:
- Detailing China’s borrowing from each multilateral development bank.
- Describing China’s voting power, shares, and representation at the banks.
- Listing countries that are no longer eligible for assistance from each bank.
- Describing U.S. efforts to end lending to countries once countries exceed the eligibility requirements.
Cassidy and Barrasso were joined by U.S Senators Joe Manchin (D-WV), Chuck Grassley (R-IA), Cynthia Lummis (R-WY), Thom Tillis (R-NC), Mike Lee (R-UT), Jerry Moran (R-KS), Rick Scott (R-FL), Bill Hagerty (R-TN), Eric Schmitt (R-MO), James Lankford (R-OK), Marsha Blackburn (R-TN), Josh Hawley (R-MO), Marco Rubio (R-FL), Tom Cotton (R-AR), Mike Braun (R-IN), Kevin Cramer (R-ND), Roger Marshall (R-KS), Mike Rounds (R-SD), John Hoeven (R-ND), and Shelley Moore Capito (R-WV).
Background
The World Bank and the Asian Development Bank were created to promote economic growth in developing countries and eliminate extreme poverty. Despite being the second-largest economy in the world, China is still receiving loans and assistance from both banks.
Since 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.
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.