Neutralizing Unfair Chinese Subsidies Act

Neutralizing Unfair Chinese Subsidies Act

The biggest threat we face from China is not militarily—it’s their tactful drain on our trade, jobs, and profit through predatory economic practices and theft of intellectual property. China has become the world’s largest provider of government-backed credit globally and the best time to combat this was yesterday.  

I’ve introduced the Neutralizing Unfair Chinese Subsidies Act to require the Administration to take action to combat their efforts to buy global influence by offering developing nations predatory credit lines used to build shoddy and dangerous infrastructure projects.  

The Chinese Communist Party’s (CCP) 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 would:  

  • Require 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. 

  • Mandate 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. 

We must combat the CCP and level the playing field for American exports. 

Read The Bill Text Here: 

FORM: https://nunn.house.gov/SL/Neutralizing-Unfair-Chinese-Subsidies-Act