Bill Summary
The "Strengthening Exports Against China Act" amends the Export-Import Bank Act of 1945 to adjust how the default rate is calculated for financing provided by the Export-Import Bank (Ex-Im Bank). Specifically, it allows certain financing to be excluded from this calculation if the funds are aimed at replacing or competing with products or services from entities that are on specific government watchlists, such as the Entity List or the list of specially designated nationals. Additionally, it provides that financing offered under a specific program focused on China and transformational exports will also be exempt from default rate calculations. The legislation aims to enhance U.S. export competitiveness, particularly in relation to China, by providing more favorable financing terms.
Possible Impacts
Here are three examples of how the "Strengthening Exports Against China Act" could affect people:
1. **Increased Export Opportunities for U.S. Businesses**: By excluding certain financing from default rate calculations, U.S. businesses may find it easier to obtain loans and financial support from the Export-Import Bank. This could lead to increased exports of American goods and services, potentially creating jobs in manufacturing, logistics, and other related sectors. Workers in these industries may benefit from job stability or new job opportunities as companies expand their operations to take advantage of new financing options.
2. **Competitive Pressure on Foreign Entities**: The act encourages U.S. businesses to compete against entities on restricted lists, such as those maintained by the Bureau of Industry and Security or the Office of Foreign Assets Control. This could lead to enhanced competition in the market, benefiting consumers with more choices and potentially lower prices. However, it might also put pressure on foreign companies that face increased competition from U.S. products, which could impact their employees and local economies.
3. **Economic Impact on Trade Relations**: By strengthening the ability of U.S. exporters to compete against foreign entities, particularly those in China, the act may exacerbate trade tensions between the U.S. and China. This could lead to retaliatory measures from China, affecting individuals involved in international trade, such as importers and exporters, as well as consumers who may face higher prices for goods impacted by trade disputes. Additionally, those working in sectors reliant on imports may experience challenges if tariffs or trade restrictions are imposed as a countermeasure.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1615 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 1615
To amend the Export-Import Bank Act of 1945 to exclude certain
financing from the calculation of the default rate for purposes of
determining when the lending cap under such Act applies, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 26, 2025
Mrs. Kim (for herself and Mrs. Beatty) introduced the following bill;
which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Export-Import Bank Act of 1945 to exclude certain
financing from the calculation of the default rate for purposes of
determining when the lending cap under such Act applies, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Strengthening Exports Against China
Act''.
SEC. 2. EXCLUSION OF CERTAIN FINANCING.
Section 6(a)(3) of the Export-Import Bank Act of 1945 (12 U.S.C.
635e(a)(3)) is amended--
(1) by striking ``If'' and inserting the following:
``(A) In general.--If''; and
(2) by adding at the end the following:
``(B) Exclusion of certain financing.--For purposes
of this paragraph, the rate calculated under section
8(g)(1) shall not include an entity in default if the
Bank determines that the financing provided to the
entity--
``(i) facilitates the replacement of or
competition with a product or service provided
by--
``(I) an entity on the Entity List
maintained by the Bureau of Industry
and Security of the Department of
Commerce and set forth in Supplement
No. 4 to part 744 of title 15, Code of
Federal Regulations; or
``(II) a person--
``(aa) on the list of
specially designated nationals
and blocked persons maintained
by the Office of Foreign Assets
Control of the Department of
the Treasury; or
``(bb) with respect to
which one or more persons
described in item (aa),
individually or in the
aggregate, directly or
indirectly, hold at least 50
percent of the outstanding
voting interest; or
``(ii) was provided pursuant to the Program
on China and Transformational Exports
established under section 2(l).''.
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