U.S. Senator John Barrasso (R-WY) was joined by 17 other Republican senators in introducing legislation (S. 2587) that ends lending to China from multilateral development banks, including the World Bank and Asian Development Bank.
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, China is still receiving loans and assistance from both banks.
Since it passed the graduation criteria in 2016, the World Bank approved $8.9 billion in projects in China. The Asian Development Bank provided China with $7.6 billion in loans and $1.8 billion in non-sovereign commitments to China during that same timeframe.
“China is the second largest economy and the largest single creditor in the world,” Sen. 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. This bill prevents China from receiving loans meant for countries that deserve these funds to fight poverty and encourage development,” Sen. Boozman said.
“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. 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,” Sen. Lummis said.
“As the world’s second largest economy, China no longer needs a financial boost from the US-led international economic development system,” Sen. 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 is no longer a developing nation in need of development loans. 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,” Sen. Rubio said.
“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. 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,” Sen. Grassley said.
Sen. Rick Scott said, “Under no circumstance should American taxpayers be on the hook for international loans to Communist China. 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,” Sen. 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.”
“If the US tried to get a ‘development’ loan from the World Bank, we’d be laughed out of the room because we are the largest economy in the world,” Sen. Lankford said. “Yet, Beijing continues to receive billions in assistance from international financial institutions because they are listed as a ‘developing’ economy, even though they are the second largest economy in the world. China’s $14.7 trillion GDP economy should not be eligible for World Bank or Asian Development Bank loans intended for developing countries. Our bill makes sure the Administration stands by that policy.”
Barrasso’s bill is cosponsored by Senators Chuck Grassley (R-IA), Cynthia Lummis (R-WY), Marco Rubio (R-FL), 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), Josh Hawley (R-MO) and Mike Rounds (R-SD).
S. 2587 establishes that it is U.S. policy to oppose any additional lending to China from multilateral development banks, such as the World Bank and the Asian Development Bank.
It 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.
Source: Sen. John Barrasso