I 118th CONGRESS 1st Session H. R. 4865 IN THE HOUSE OF REPRESENTATIVES July 25, 2023 Mr. Gallagher (for himself, Mr. Gottheimer , Mr. Diaz-Balart , Mr. Gallego , Ms. Stefanik , Mr. Panetta , Mr. Gimenez , Mr. Larsen of Washington , Mr. Waltz , and Mr. Veasey ) introduced the following bill; which was referred to the Committee on Financial Services A BILL To increase transparency regarding the activities, and reduce the malign influence of, the People’s Republic of China in the Inter-American Development Bank, and for other purposes.

1. Short title This Act may be cited as the IDB Transparency Act . 2. Report on influence of the People’s Republic of China at the Inter-American Development Bank (a) In general Within 180 days after the date of the enactment of this Act, the Secretary of the Treasury, in consultation with the Secretary of State, shall submit to the appropriate congressional committees a report that includes the following: (1) The scope and scale of the influence of the PRC and PRC companies in the IDB, including in— (A) the organization and personnel of the IDB; (B) IDB governance and transparency; (C) the financing of the IDB; (D) determinations around which projects to fund or finance; (E) deliberations regarding the involvement or membership of Taiwan in the IDB; and (F) any other modes through which the PRC or PRC companies influence the IDB. (2) A complete list of all projects of the IDB that include financing or funding from the PRC, PRC companies, or PRC trust funds created at the IDB since the PRC joined the IDB as a member country on January 12, 2009, including— (A) the title and identification number of the project; (B) a description of the project; (C) the location of the project; (D) the amount of funding or financing initially allocated for the project; (E) the amount of funding or financing disbursed under the project; (F) a summary of the status of the implementation of the project; and (G) a description of any incidents in which funding or financing for a project has been disbursed, but has not been implemented or completed. (3) A complete list of the projects of the IDB in which PRC companies participate, whether through direct or indirect procurement or other contracting, including— (A) the title and identification number of the project; (B) a description of the project; (C) the location of the project; (D) the amount of funding or financing initially allocated for the project; (E) the amount of funding or financing disbursed under the project; (F) the name of the participating PRC companies and, in the case of each such company, whether the participation consists of direct or indirect procurement or other contracting; (G) the amount of funding or financing received by the PRC companies under the project; (H) a summary of the work conducted by the PRC companies as part of direct or indirect procurement or other contracting; and (I) a description of any incidents in which the PRC companies received funding or financing as part of a direct or indirect procurement or other contracting, but required work has not been implemented or completed. (4) A full review of projects described in paragraphs (2) and (3) to assess whether any of the projects featured any human rights abuses, delays, corruption, or poor results, and an analysis of the procurement practices involved in the projects. (5) The extent to which— (A) the IDB uses equipment or services produced by technology providers covered by section 2 of the Secure and Trusted Communications Networks Act of 2019 or PRC companies on the list of entities set forth in Supplement No. 4 to part 744 of the Export Administration Regulations, set forth in subchapter C of chapter VII of title 15, Code of Federal Regulations, or any successor regulations; or (B) projects funded or financed by the IDB use technology provided by the providers or entities. (6) A review of how and to what extent the PRC has used the IDB to, within IDB member countries— (A) spread the diplomatic, economic, and military influence of the PRC; (B) promote the adoption and use of technologies of PRC companies; and (C) promote the preferred values of the PRC. (7) An action plan for the Executive Director to work to reduce the involvement of the PRC and PRC companies in the IDB and projects funded or financed by the IDB, as determined under this subsection. (8) The extent to which PRC persons sanctioned by the United States serve in leadership or management positions in PRC companies working on IDB-funded or IDB-financed projects. (9) The extent to which the PRC has used its voice, vote, and influence in the IDB to promote the interests of the PRC at the expense of regional development interests. (10) A summary of the in-depth reviews conducted under section 3(a)(2)(A) of this Act. (11) A list of IDB projects funded by the PRC or PRC companies assessed to pose a risk to United States interests due to their proximity to a cooperative security location, a United States military installation outside the contiguous United States, or a military installation of a partner or ally of the United States. (b) Subsequent reports Within 2 years after the Secretary submits the report required by subsection (a), and every 2 years thereafter for 8 years, the Secretary shall submit to the appropriate congressional committees a report that includes— (1) any updates to information included in all reports submitted under subsection (a); and (2) any new information related to the matters described in subsection (a). (c) Format The reports required under subsections (a) and (b) shall be submitted to the appropriate congressional committees in unclassified form, but may include a classified annex. (d) Public availability Not earlier than 60 days, and not later than 90 days, after the Secretary submits a report required by subsection (a) or (b), the Secretary shall post an unclassified summary of the report on a public-facing web page of the Department of the Treasury. 3. Required use of United States voice, vote, and influence at the Inter-American Development Bank (a) In general The Secretary of the Treasury shall instruct the United States Executive Director at the Inter-American Development Bank to use the voice, vote, and influence of the United States to do the following: (1) Facilitate greater IDB transparency about the role of the PRC and PRC companies in the IDB, including by fostering a more open release policy toward working papers, past evaluations, and other IDB documents. (2) Reduce the influence of the PRC and PRC companies in all IDB deliberations, activities, and projects, including by— (A) conducting an in-depth review of all projects, financing, loans, and grants in which at least 10 percent of— (i) the funding or financing for such a project, financing, loan, or grant comes from the PRC or PRC companies; or (ii) the value of direct or indirect procurements or other contracting for such a project, financing, loan, or grant is provided to PRC companies; and (B) voting against or taking action to prevent a quorum for all votes related to— (i) any project, financing, loan, or grant for which the in-depth review required in subparagraph (A) determines presents risks to United States national interests; and (ii) any project, financing, loan, or grant that would include the participation of PRC trust funds created with the IDB. (3) Beginning 180 days after date of the enactment of this Act, if the Secretary has failed to submit the report required by section 2, vote against, or take action to prevent a quorum for all votes related to, IDB budgets until the IDB provides the Secretary with the information required for the Secretary to prepare and submit the report. (4) Vote against, or withhold quorum for all votes related to, the issuance, sale, or transfer of additional shares of stock in the IDB to the PRC. (b) Waiver The Secretary may waive the requirements of subsection (a)(3) on a case-by-case basis if the Secretary certifies and reports to the appropriate congressional committees before the waiver is exercised that the waiver would serve a national interest of the United States or address basic human needs. 4. Definitions In this Act: (1) Appropriate congressional committees The term appropriate congressional committees means— (A) the Committee on Foreign Relations of the Senate; and (B) the Committee on Financial Services and the Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party of the House of Representatives. (2) Executive Director The term Executive Director means the United States Executive Director at the IDB. (3) IDB The term IDB means all of the current and former institutions in the IDB Group, including the Inter-American Development Bank, IDB Invest, IDB lab, and any related predecessor entities. (4) PRC The term PRC — (A) means the People’s Republic of China; and (B) includes any and all Special Administrative Regions of China, including Hong Kong and Macau but not including Taiwan. (5) PRC companies The term PRC companies means any corporation, company, limited liability company, limited partnership, business trust, business association, or other similar entity owned by, controlled by, or subject to the jurisdiction or direction of the Government of the PRC. (6) Secretary The term Secretary means the Secretary of the Treasury.