Bill Summary
The "Strengthening Exports Against China Act" amends the Export-Import Bank Act of 1945 to adjust how default rates are calculated when determining the lending cap for the Export-Import Bank. Specifically, the legislation excludes certain types of financing from this calculation if they meet specific criteria.
These criteria include financing that helps replace or compete with products or services from entities listed on the U.S. Department of Commerce's Entity List or those that are subject to sanctions by the Department of the Treasury. Additionally, financing provided under a specific program aimed at addressing challenges posed by China and promoting transformational exports is also excluded. The goal of this bill is to strengthen U.S. exports and enhance competitiveness against Chinese products, thereby supporting American businesses and industries.
Possible Impacts
The "Strengthening Exports Against China Act" could have several effects on individuals and businesses. Here are three examples:
1. **Increased Opportunities for Exporters**: By allowing certain financing to be excluded from the default rate calculation, this legislation may enable more U.S. companies to access financing for projects that compete with or replace products from entities on the Entity List. As a result, businesses that seek to innovate or invest in new technologies may find it easier to secure funding, potentially leading to job creation and economic growth.
2. **Enhanced Competition in the Market**: The act encourages the development and export of products that compete with those from designated foreign entities. This could benefit consumers by providing them with a broader range of products and potentially lower prices due to increased competition. Industries that are currently reliant on foreign products may experience more robust domestic alternatives.
3. **Potential Impact on Trade Relations**: Individuals working in sectors that rely heavily on exports may face uncertainty due to the changing landscape of international trade. If financing becomes more readily available for companies to compete with foreign entities, there may be pushback or retaliatory measures from countries affected by this legislation. Workers in industries sensitive to international trade relations could experience job instability or shifts in demand for their skills.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 753 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 753
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 SENATE OF THE UNITED STATES
February 26, 2025
Ms. Cortez Masto (for herself and Mr. Rounds) introduced the following
bill; which was read twice and referred to the Committee on Banking,
Housing, and Urban Affairs
_______________________________________________________________________
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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