âChina has been lending development money beyond its borders to expand its influence for years while receiving US taxpayer money through the World Bank and other global institutions. Worst of all, these loans may have helped free up resources used to violate human rights and force Uyghurs into internment camps. There is no reason why the world’s second largest economy needs these funds. I have led legislative efforts to hold China and the World Bank accountable, and I am happy to join Senator Barrasso and my other colleagues in continuing this work. It is high time to put in place an American policy which opposes these loans to the Communist government of China â, Grassley said.
The World Bank and the Asian Development Bank were created to help developing countries and help eradicate extreme poverty. Despite having access to capital and being one of the world’s largest economies, China continues to receive loans and aid from both banks.
Since passing the graduation criteria in 2016, the World Bank has 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 the same period.
This legislation establishes that the policy of the United States is to oppose any additional lending to China from multilateral development banks, such as the World Bank and the Asian Development Bank.
It demands that the Secretary of the Treasury order the US executive director of each of the multilateral development banks to oppose any lending, expansion or technical assistance from the bank to China and to end lending to countries that exceed the criteria for it. ‘obtaining the Bank loan diploma.
The legislation also creates an annual report to Congress:
assess the state of China’s borrowing from multilateral development banks,
describing China’s voting power, actions and representation in banks,
list countries exceeding graduation discussion income in each bank,
list the countries that came out of assistance from each bank, and
outlining U.S. efforts to end country lending once countries exceed eligibility criteria.