Securing Transparent Operations to Prevent China’s Abuse of International Financing Act
Bill: H.R.6729 | Sponsor: Rep. Guest, Michael (R-MS)
Policy area: International Affairs

Summary:
Securing Transparent Operations to Prevent China's Abuse of International Financing Act or the STOP China's Abuse of International Financing Act
This bill requires U.S. representatives to the United Nations, the World Trade Organization, and specified international financial institutions to take actions to address China's role in such institutions.
The representatives to these institutions must (1) advocate and vote against their respective institutions using U.S. contributions to procure goods from (or sourced in) China, and (2) pursue procedural changes so that their respective institutions do not consider China a developing nation for any purpose.

To require a report on the People's Republic of China's use of 
   international financial institutions, to set United States policy 
  regarding the identification of the People's Republic of China as a 
``developing nation'' and address this matter in regional multilateral 
    financial institutions, to prohibit the use of Federal funds to 
  purchase certain goods from the People's Republic of China, 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 ``Securing Transparent Operations to 
Prevent China's Abuse of International Financing Act'' or the ``STOP 
China's Abuse of International Financing Act''.

SEC. 2. REPORT ON THE PEOPLE'S REPUBLIC OF CHINA'S USE OF AND INFLUENCE 
              IN INTERNATIONAL FINANCIAL INSTITUTIONS.

    Within 1 year after the date of the enactment of this Act, the 
Secretary of State, in consultation with the Secretary of the Treasury, 
shall prepare and submit to the Committee on Foreign Affairs of the 
House of Representatives and the Committee on Foreign Relations of the 
Senate a written report on the ways that the People's Republic of China 
has used its role in international financial institutions to influence 
the policies of the institutions and advance its diplomatic objectives 
during the period that begins with calendar year 2000 and ends with the 
present, including--
            (1) a statement of the percentage of funds donated to each 
        international financial institution during that period, that is 
        represented by donations from the People's Republic of China, 
        and how each such percentage has changed during that period;
            (2) a statement of the percentage of capital loaned to the 
        People's Republic of China during that period that is 
        represented by loans from each international financial 
        institution, and how each such percentage has changed during 
        that period, including--
                    (A) how the People's Republic of China used 
                financing from any institution in the World Bank Group 
                for projects which the People's Republic of China did 
                not finance internally; and
                    (B) how United States technical assistance has been 
                used by each institution of the World Bank Group in 
                evaluating loans to the People's Republic of China;
            (3) a statement of the percentage of the staff of each 
        international financial institution who identify as Chinese 
        nationals, and how each such percentage has changed during that 
        period; and
            (4) a statement of the involvement of enterprises 
        controlled by, or whose headquarters are in, the People's 
        Republic of China in bidding on contracts offered by any 
        international financial institution during that period, and the 
        percentage of the contracts that were awarded to any such 
        enterprise, including--
                    (A) how the People's Republic of China subsidizes 
                the enterprises in order to drive down bid prices; and
                    (B) the criteria necessary for a transparent 
                bidding process for contracts offered by any such 
                institution.

SEC. 3. STATEMENT OF POLICY.

    (a) Sense of the Congress.--It is the sense of the Congress that 
international financial institutions, related trade groups, and 
multilateral organizations should not consider the People's Republic of 
China to be a developing nation for any purpose.
    (b) Procedures of World Organizations.--The United States 
representatives to the United Nations, the World Trade Organization, 
and the international financial institutions shall pursue changes in 
the procedures of their respective institutions to ensure that their 
respective institutions do not consider the People's Republic of China 
to be a developing nation for any purpose.

SEC. 4. REPORT FROM UNITED STATES TRADE REPRESENTATIVE.

    Not later than 90 days after the date of the enactment of this Act, 
the United States Trade Representative shall submit to Congress a 
report that describes the manner in which the Trade Representative 
plans to pursue a strategy with respect to the World Trade Organization 
(WTO) to carry out and achieve the following:
            (1) Facilitate the full implementation of currently 
        negotiated and possible future agreements of the WTO.
            (2) Enable the maximum benefits from trade to accrue to 
        members of the WTO that face the greatest difficulty 
        integrating into multilateral and regional trade institutions.
            (3) Ensure that none of the following members of the WTO 
        receives ``special and differential'' treatment in currently 
        negotiated or possible future agreements of the WTO:
                    (A) Members that are also members of the 
                Organization for Economic Cooperation and Development 
                (OECD) or begun the accession process to OECD.
                    (B) Members that are also members of the G20.
                    (C) Members that are classified as ``high income'' 
                countries by the International Bank for Reconstruction 
                and Development.

SEC. 5. PROHIBITION ON USE OF FEDERAL FUNDS PROVIDED TO INTERNATIONAL 
              FINANCIAL INSTITUTIONS FOR GOODS FROM CHINA.

    The Secretary of the Treasury shall direct the United States 
representatives to the United Nations, the World Trade Organization, 
and the international financial institutions to use the voice and vote 
of the United States to prevent the institutions from using any 
contribution made on behalf of the United States to--
            (1) procure goods from, or sourced in, the People's 
        Republic of China; or
            (2) fulfill any contract awarded by the Bank to any 
        enterprise controlled by, or whose headquarters is in, the 
        People's Republic of China.

SEC. 6. DEFINITION OF INTERNATIONAL FINANCIAL INSTITUTION.

    In this Act, the term ``international financial institution'' 
means--
            (1) each institution of the World Bank Group;
            (2) the African Development Bank;
            (3) the Asian Development Bank;
            (4) the Caribbean Development Bank;
            (5) the European Bank for Reconstruction and Development;
            (6) the Inter-American Development Bank;
            (7) the Arab Fund for Economic and Social Development;
            (8) the European Investment Bank;
            (9) the Global Environment Facility;
            (10) the Islamic Development Bank;
            (11) the North American Development Bank; and
            (12) the Organization of American States.
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