A bill to oppose the provision of assistance to the People's Republic of China by the multilateral development banks.

#908 | S Congress #118

Subjects:

Last Action: Read twice and referred to the Committee on Foreign Relations. (3/22/2023)

Bill Text Source: Congress.gov

Summary and Impacts
Original Text
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 908 Introduced in Senate (IS)]

<DOC>






118th CONGRESS
  1st Session
                                 S. 908

To oppose the provision of assistance to the People's Republic of China 
                 by the multilateral development banks.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 22, 2023

 Mr. Barrasso (for himself, Mr. Grassley, Ms. Lummis, Mr. Tillis, Mr. 
  Lee, Mr. Moran, Mr. Scott of Florida, Mr. Hagerty, Mr. Schmitt, Mr. 
Lankford, Mrs. Blackburn, Mr. Hawley, Mr. Rubio, Mr. Cotton, Mr. Braun, 
 Mr. Cramer, Mr. Marshall, Mr. Cassidy, Mrs. Capito, Mr. Manchin, Mr. 
 Rounds, and Mr. Hoeven) introduced the following bill; which was read 
        twice and referred to the Committee on Foreign Relations

_______________________________________________________________________

                                 A BILL


 
To oppose the provision of assistance to the People's Republic of China 
                 by the multilateral development banks.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. OPPOSITION TO PROVISION OF ASSISTANCE TO PEOPLE'S REPUBLIC 
              OF CHINA BY MULTILATERAL DEVELOPMENT BANKS.

    (a) Findings.--Congress makes the following findings:
            (1) The People's Republic of China is the world's second 
        largest economy and a major global lender.
            (2) In the third quarter of 2022, the foreign exchange 
        reserves of the People's Republic of China totaled more than 
        $3,000,000,000,000.
            (3) The World Bank classifies the People's Republic of 
        China as a country with an upper-middle-income economy.
            (4) On February 25, 2021, President Xi Jinping announced 
        ``complete victory'' over extreme poverty in the People's 
        Republic of China.
            (5) The Government of the People's Republic of China 
        utilizes state resources to create and promote the Asian 
        Infrastructure Investment Bank, the New Development Bank, and 
        the Belt and Road Initiative.
            (6) The People's Republic of China is the world's largest 
        official creditor.
            (7) Through a multilateral development bank, countries are 
        eligible to borrow until they can manage long-term development 
        and access to capital markets without financial resources from 
        the bank.
            (8) The World Bank reviews the graduation of a country from 
        eligibility to borrow from the International Bank for 
        Reconstruction and Development once the country reaches the 
        graduation discussion income, which is equivalent to the gross 
        national income. For fiscal year 2023, the graduation 
        discussion income is a gross national income per capita 
        exceeding $7,455.
            (9) Many of the other multilateral development banks, such 
        as the Asian Development Bank, use the gross national income 
        per capita benchmark used by the International Bank for 
        Reconstruction and Development to trigger the graduation 
        process.
            (10) The People's Republic of China exceeded the graduation 
        discussion income threshold in 2016.
            (11) Since 2016, the International Bank for Reconstruction 
        and Development has approved projects totaling $9,610,000,000 
        to the People's Republic of China.
            (12) Since 2016, the Asian Development Bank has continued 
        to approve loans and technical assistance to the People's 
        Republic of China totaling more than $10,600,000,000. The Bank 
        has also approved non-sovereign commitments in the People's 
        Republic of China totaling more than $2,400,000,000 since 2016.
            (13) The World Bank calculates the People's Republic of 
        China's 2019 gross national income per capita as $10,390.
    (b) Statement of Policy.--It is the policy of the United States to 
oppose any additional lending from the multilateral development banks, 
including the International Bank for Reconstruction and Development and 
the Asian Development Bank, to the People's Republic of China as a 
result of the People's Republic of China's successful graduation from 
the eligibility requirements for assistance from those banks.
    (c) Opposition to Lending to People's Republic of China.--The 
Secretary of the Treasury shall instruct the United States Executive 
Director at each multilateral development bank to use the voice, vote, 
and influence of the United States--
            (1) to oppose any loan or extension of financial or 
        technical assistance by the bank to the People's Republic of 
        China; and
            (2) to end lending and assistance to countries that exceed 
        the graduation discussion income of the bank.
    (d) Report Required.--Not later than one year after the date of the 
enactment of this Act, and annually thereafter, the Secretary of the 
Treasury shall submit to the appropriate congressional committees a 
report that includes--
            (1) an assessment of the status of borrowing by the 
        People's Republic of China from each multilateral development 
        bank;
            (2) a description of voting power, shares, and 
        representation by the People's Republic of China at each such 
        bank;
            (3) a list of countries that have exceeded the graduation 
        discussion income at each such bank;
            (4) a list of countries that have graduated from 
        eligibility for assistance from each such bank; and
            (5) a full description of the efforts taken by the United 
        States to graduate countries from such eligibility once they 
        exceed the graduation discussion income at each such bank.
    (e) Definitions.--In this section:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Foreign Relations of the 
                Senate; and
                    (B) the Committee on Financial Services and the 
                Committee on Foreign Affairs of the House of 
                Representatives.
            (2) Multilateral development banks.--The term 
        ``multilateral development banks'' has the meaning given that 
        term in section 1701(c) of the International Financial 
        Institutions Act (22 U.S.C. 262r(c)).
                                 <all>

AI processing bill