WASHINGTON, D.C. — Representative Zach Nunn (IA-03), Vice Chair of the House Financial Services Subcommittee on National Security, introduced the Neutralizing Unfair Chinese Subsidies Act to strengthen American competitiveness and hold China accountable for violating global trade standards.
China is the world’s largest provider of official export credit, disbursing an average of $33.5 billion annually. In 2018 alone, that figure surged to over $500 billion, much of it directed toward developing countries through projects that have resulted in mounting debt and stalled infrastructure.
“Whether it’s an Iowa manufacturer building precision agriculture equipment or a Main Street business selling technology products around the world, we’re competing in a rigged system,” said Rep. Nunn. “China is flooding markets with unfair subsidies, which undercut American companies and saddle developing countries with unsustainable debt. This bill is about holding China accountable and leveling the playing field.”
Much of China’s lending bypasses the transparency and fair competition standards established by the Organization for Economic Co-operation and Development (OECD), which the United States and its allies follow to ensure a level playing field. By bypassing OECD guidelines, China relies on opaque, state-subsidized financing to distort global markets, undercut American exports, and trap developing countries with unsustainable debt. This approach gives the Chinese Communist Party a strategic advantage while undermining the principles of fairness, accountability, and long-term economic stability.
China’s export lending is a key pillar of its Belt and Road Initiative, which has financed infrastructure projects across the developing world, often with disastrous results:
Many of these projects are plagued by construction flaws, massive cost overruns, and unsustainable debt that leaves countries dependent on Beijing. In contrast, the United States has taken a responsible approach to global development, financing $610 billion through the Export-Import Bank throughout its decades-long history. In 2018 alone, China’s export credit activity surpassed the combined efforts of all other G7 countries, reflecting a strategy that prioritizes influence over infrastructure quality or long-term outcomes.
Specifically, the Neutralizing Unfair Chinese Subsidies Act would:
- Require the Secretary of the Treasury to develop a strategy and timeline to bring China into compliance with international export credit standards
- Direct Treasury to lead twice-yearly negotiations aimed at reducing global export subsidies
- Mandate annual progress reports to Congress on subsidy reduction efforts
Text of the bill can be found here.
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