Des Moines, Iowa — Representative Zach Nunn (IA-03) introduced a bill to counter Chinese efforts to expand the global influence of the Chinese Communist Party (CCP). The Neutralizing Unfair Chinese Subsidies Act of 2023 would require the Administration to take action to combat the CCP’s efforts to buy global influence by offering developing nations predatory credit lines used to build shoddy and dangerous infrastructure projects.
“The best time to combat China was yesterday because the biggest threat we face from them is not militarily—it’s their tactful drain on our trade, jobs, and profit through predatory economic practices and theft of intellectual property,” said Rep. Nunn. “This bill would combat China’s efforts to expand the global influence of the Chinese Communist Party and level the playing field for American exports.”
China has become the world’s largest provider of government-backed credit globally. The CCP’s dangerously cheap and predatory infrastructure aid, through the use of export credit subsidies, is designed to buy global influence, undercut other countries’ legitimate exports and distort international trade markets. This strategy is the foundation of the CCP’s Belt and Road Initiative, which has burdened developing nations with billions of dollars in debt they cannot repay and shoddy infrastructure that will require an untold amount of money to repair.
Specifically, the Neutralizing Unfair Chinese Subsidies Act of 2023 would require the Secretary of the Treasury to develop a strategy to combat these dangerous and destabilizing Chinese credit practices by ensuring China’s compliance with the Organization for Economic Co-operation and Development (OECD)’s Arrangement on Officially Supported Export Credits, which is a multi-national agreement that provides developing nations with certainty and transparency while preventing predatory lending practices.
The full text of the bill can be read here.
BACKGROUND
Specifically, the Neutralizing Unfair Chinese Subsidies Act of 2023:
- Requires the Secretary of the Treasury to create a detailed strategy and timeline to ensure compliance by China with the Organization for Economic Co-operation and Development (OECD) Arrangement on Officially Supported Export Credits. The ultimate goal, consistent with the Export-Import Bank Charter, is to eliminate the use of global export subsidies.
- Mandates the Treasury Department to negotiate a substantial reduction in these subsidies around the world within the next decade. The Treasury Department would be required to undertake subsidy negotiations at least twice per year and submit an annual progress report to Congress.