Title: Countering China Through American Export Competitiveness Act
Policy area: Foreign Trade and International Finance

Summary:
Countering China Through American Export Competitiveness Act
This bill modifies certain responsibilities of the Export-Import Bank of the United States related to its Program on China and Transformational Exports. The program supports financing at rates and on terms that are fully competitive with rates and terms established by China in order to (1) directly neutralize export subsidies for competing goods and services, or (2) advance the comparative leadership of the United States through specified exports.
The bill prohibits the bank generally from guaranteeing, insuring, or extending credit for which the end user, lender, or obligor is China. The bill also raises from 20% to 33% the dedicated amount that the bank should reserve for the program, and it sets the default rate limit for program loans at 5%.
The bill authorizes the bank to waive some, or all, of the domestic content requirements that would otherwise apply to a transaction if it determines that doing so would be in the national security interest of the United States. The bill also establishes an advisory committee to advise the bank on the development of policies and programs that support the expansion of the bank's financial commitments in accordance with the program to counter China.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8163 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 8163

  To limit support for deals with Chinese state-owned enterprises, to 
       increase the set-aside goal for the Program on China and 
           Transformational Exports, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 4, 2020

   Mr. Barr introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
  To limit support for deals with Chinese state-owned enterprises, to 
       increase the set-aside goal for the Program on China and 
           Transformational Exports, 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 ``Countering China Through American 
Export Competitiveness Act''.

SEC. 2. LIMITATION ON SUPPORT FOR DEALS WITH CHINESE STATE-OWNED 
              ENTERPRISES.

    Section 408 of division I of the Further Consolidated 
Appropriations Act, 2020 (12 U.S.C. 635 note; Public Law 116-94) is 
amended to read as follows:

``SEC. 408. LIMITATION ON SUPPORT FOR DEALS WITH CHINESE STATE-OWNED 
              ENTERPRISES.

    ``(a) In General.--The Export-Import Bank of the United States (in 
this section referred to as the `Bank') shall not guarantee, insure, or 
extend (or participate in the extension of) credit for which the end 
user, lender, or obligor is the government of the People's Republic of 
China, except that the Bank may provide a working capital guarantee or 
export credit insurance to a United States exporter. In the case of 
such a transaction that involves an amount greater than or equal to 
$25,000,000, the Bank may provide a working capital guarantee or export 
credit insurance to a United States exporter with respect to such an 
export if the Bank obtains from the President of the United States, who 
may consult with the Secretary of State, the Secretary of the Treasury, 
the Secretary of Commerce, the Secretary of Defense, the United States 
Trade Representative, and the heads of other interested Executive 
agencies, a determination that the provision of the guarantee or 
insurance would not violate the national security interests of the 
United States.
    ``(b) National Interest Report.--
            ``(1) In general.--Before providing a working capital 
        guarantee or export credit insurance to a United States 
        exporter in a transaction involving an amount equal to or 
        greater than $25,000,000, pursuant to subsection (a), the 
        President of the Bank shall--
                    ``(A) report to the Committee on Financial Services 
                of the House of Representatives and the Committee on 
                Banking, Housing, and Urban Affairs of the Senate that 
                the Bank has obtained from the President of the United 
                States and any other relevant department or agency, as 
                deemed appropriate by the President of the United 
                States, a determination that the provision of the 
                guarantee or insurance would not violate the national 
                security interests of the United States;
                    ``(B) include a verification from the Bank that the 
                transaction does not violate any export law of the 
                United States; and
                    ``(C) include a summary of the transaction and the 
                consultation.
            ``(2) Form.--The report described in paragraph (1) shall be 
        submitted in unclassified form but may include a classified 
        annex.
    ``(c) Definition of Government of the People's Republic of China.--
In this section, the term `government of the People's Republic of 
China' means any person that the Bank has reason to believe is--
            ``(1) the state and the government of the People's Republic 
        of China, including any political subdivision, agency, or 
        instrumentality thereof;
            ``(2) any entity controlled, directly or indirectly, by any 
        of the foregoing, including any partnership, association, or 
        other entity in which any of the foregoing owns a 50 percent or 
        greater interest or a controlling interest, and any entity 
        which is otherwise controlled by any of the foregoing;
            ``(3) any person that is or has been acting or purporting 
        to act, directly or indirectly, for or on behalf of any of the 
        foregoing; and
            ``(4) any other person that the Secretary of the Treasury 
        has notified the Bank is included in any of the foregoing.''.

SEC. 3. INCREASE IN RESERVE GOAL FOR THE PROGRAM ON CHINA AND 
              TRANSFORMATIONAL EXPORTS.

    Section 2(l)(3) of the Export-Import Bank Act of 1945 (12 U.S.C. 
635(l)(3)) is amended in each of subparagraphs (A) and (B) by striking 
``20'' and inserting ``33''.

SEC. 4. SUSPENSION OF LOAN AUTHORITY UNDER THE PROGRAM ON CHINA AND 
              TRANSFORMATIONAL EXPORTS WHILE DEFAULT RATE IS EXCESSIVE.

    (a) In General.--Section 2(l) of the Export-Import Bank Act of 1945 
(12 U.S.C. 635(l)) is amended by adding at the end the following:
            ``(4) Freezing of loans under the program on china and 
        transformational exports if default rate for loans under that 
        program is 5 percent or more.--If the rate calculated under 
        section 8(g)(1) with respect to loans under section 2(l) is 5 
        percent or more for a quarter, the Bank may not exceed the 
        amount of loans under such section that are outstanding on the 
        last day of that quarter until the rate calculated under 
        section 8(g)(1) with respect to loans under such section is 
        less than 5 percent.''.
    (b) Conforming Amendment.--Section 6(a)(3) of such Act (12 U.S.C. 
635e(a)(3)) is amended by adding at the end the following: ``If the 
rate calculated under section 8(g)(1) with respect to loans under 
section 2(l) is 2 percent or more for a quarter, then loans under 
section 2(l) shall not be taken into account for the quarter for 
purposes of this paragraph.''.

SEC. 5. ADVISORY COMMITTEE FOR PROGRAM ON CHINA AND TRANSFORMATIONAL 
              EXPORTS.

    (a) In General.--Section 2(b) of the Export-Import Bank Act of 1945 
(12 U.S.C. 635(b)) is amended by inserting after paragraph (12) the 
following:
    ``(14)(A) The Board of Directors of the Bank shall take prompt 
measures, consistent with the credit standards otherwise required by 
law, to promote the expansion of the financial commitments of the Bank 
in accordance with the Program on China and Transformational Exports 
under the loan, guarantee, and insurance programs of the Bank.
    ``(B)(i) The Board of Directors shall establish and use an advisory 
committee to advise the Board of Directors on the development and 
implementation of policies and programs designed to support the 
expansion described in subparagraph (A).
    ``(ii) At least 1 member of the advisory committee shall be a 
member of the U.S.-China Economic and Security Review Commission.
    ``(iii) The advisory committee shall make recommendations to the 
Board of Directors on how the Bank can facilitate greater support by 
United States commercial banks for trade in accordance with the Program 
on China and Transformational Exports.
    ``(iv) The advisory committee shall terminate on the date on which 
the authority of the Bank expires under section 7.''.
    (b) Reports to the Congress.--Within 6 months after the date of the 
enactment of this Act, and annually thereafter, the Board of Directors 
of the Export-Import Bank of the United States shall submit to the 
Congress a report on the steps that the Board has taken to implement 
section 2(b)(14)(B) of the Export-Import Bank Act of 1945 (as added by 
subsection (a) of this section) and any recommendations of the advisory 
committee established pursuant to such section 2(b)(14)(B).

SEC. 6. WAIVER OF DOMESTIC CONTENT REQUIREMENTS FOR CERTAIN 
              TRANSACTIONS SUBJECT TO THE PROGRAM ON CHINA AND 
              TRANSFORMATIONAL EXPORTS.

    Section 2(l) of the Export-Import Bank Act of 1945 (12 U.S.C. 
635(l)), as amended by section 4(a) of this Act, is amended by adding 
at the end the following:
            ``(5) Waiver of domestic content requirements.--
                    ``(A) In general.--The Bank may waive some or all 
                of the domestic content requirements that would 
                otherwise apply to a transaction described in paragraph 
                (1)(B), if the Bank determines that doing so would be 
                in the national security interest of the United States, 
                and shall establish a process for requesting such a 
                waiver.
                    ``(B) Reports to the congress.--Not less frequently 
                than twice each year, the Bank shall submit to the 
                Committee on Financial Services of the House of 
                Representatives and the Committee on Banking, Housing, 
                and Urban Affairs of the Senate a report specifying the 
                transactions for which a waiver is provided under 
                subparagraph (A) during the period covered by the 
                report.''.
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