Securing Transparent Operations to Prevent China’s Abuse of International Financing Act

Bill: 117-hr-6729
Sponsor: full_name: Rep. Guest, Michael [R-MS-3]
Introduced: 2022-02-15
Policy area: International Affairs
Latest action: action_date: 2022-02-15
text: Referred to the Committee on Financial Services, and in addition to the Committees on Ways and Means, and Foreign Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Summaries:
action_date: 2022-02-15
action_desc: Introduced in House
text: <p><strong>Securing Transparent Operations to Prevent China's Abuse of International Financing Act or the STOP China's Abuse of International Financing Act</strong></p> <p>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.</p> <p>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. </p>

tv_txt: I 117th CONGRESS 2d Session H. R. 6729 IN THE HOUSE OF REPRESENTATIVES February 15, 2022 Mr. Guest (for himself, Mr. McCaul , Mr. Crenshaw , Mr. McKinley , Mr. Mast , and Mr. Babin ) introduced the following bill; which was referred to the Committee on Financial Services , and in addition to the Committees on Ways and Means , and Foreign Affairs , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL 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.

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 . 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. 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. 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. 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. 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.