Senators join forces to introduce bill to end lending to China

TOPEKA, Kan. (WIBW) - U.S. Senator Jerry Moran (R-Kan.), a member of the Senate Select Committee on Intelligence, joined colleagues to introduce a bill to end lending to the Chinese Communist Party from World Bank and Asian Development Bank.

Senator Moran’s Office announced the World Bank and the Asian Development Bank were created to promote economic growth in developing counties and eliminate extreme poverty. Despite having access to capital and being the second-largest economy in the world, China is still receiving loans and assistance from both banks.

Since meeting the criteria for graduation from lending in 2016, the World Bank approved $9.6 billion in projects for 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.

“The World Bank and the Asian Development Bank should not be providing loans and assistance to China,” said Sen. Moran. “These banks were designed to help spur economic growth in developing countries, not the country with the world’s second-largest economy. This legislation will help reprioritize the lending from these banks and end loans to China.”

“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 Sen. 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.”

This legislation was introduced by Sen. John Barrasso (R-Wyo.) and was also cosponsored by Sens. Joe Manchin (D-W.Va.), Chuck Grassley (R-Iowa), Cynthia Lummis (R-Wyo.), Thom Tillis (R-N.C.), Mike Lee (R-Utah), Rick Scott (R-Fla.), Bill Hagerty (R-Tenn.), Eric Schmitt (R-Mo.), James Lankford (R-Okla.), Marsha Blackburn (R-Tenn.), Josh Hawley (R-Mo.), Marco Rubio (R-Fla.), Tom Cotton (R-Ark.), Mike Braun (R-Ind.), Kevin Cramer (R-N.D.), Roger Marshall (R-Kan.), Bill Cassidy (R-La.), Mike Rounds (R-S.D.), John Hoeven (R-N.D.) and Shelley Moore Capito (R-W.Va.).

Senator Moran’s Office said the bill requires the Secretary of Treasury to instruct the U.S. Executive Director at each of the multilateral banks to oppose any loans, extension, or technical assistance by the bank to China and to end lending to countries that exceed the criteria for graduating from lending.

Senator Moran’s Office indicated the legislation 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, and listing countries exceeding the graduation discussion income at each bank, listing countries that have graduated with assistance from each bank, and describing U.S. efforts to end lending to countries once countries exceed the eligibility requirements.

Senator Moran’s Office said on Sept. 21, 2022, the Senate approved an amendment, in a 96-0 vote, declaring that China is not a developing country and should not be treated as such by the international community.