U.S. Rep. Mike Gallagher, R-Wis., who also serves as the Chairman of the Select Committee on the Chinese Communist Party (CCP), joined a group of other lawmakers to present the "Inter-American Development Bank Transparency Act." The primary objective of this bill is to curb the CCP's coercion and influence in Latin America, particularly regarding the Inter-American Development Bank (IDB), according to a July 25 news release.
"For too long, the Chinese Communist Party has exploited its presence in the Inter-American Development Bank to advance its own geopolitical, economic and technological goals," Gallagher said in the release. "Latin American citizens deserve to have the IDB serve their economic development, not as a vector of CCP malign influence."
Headquartered in Washington, D.C., the IDB stands as the largest and foremost international financial institution serving Latin America and the Caribbean. In 2022, it allocated $23 billion toward financing sustainable economic and institutional development in the region, the release reported.
Sen. Bill Hagerty, R-Tenn., said the economic security of the U.S. is tied to the Western Hemisphere's economic security, and Sen. Marco Rubio, R-Fla., said the U.S. is the largest shareholder in the IDB, according to the release.
Despite the CCP's ownership of only 0.1% of shares in the IDB, it remains a significant concern due to how the CCP leverages it, including pressuring other countries to comply with their demands, the release said.
“The Chinese Communist Party is increasingly utilizing the Inter-American Development Bank to expand its reach, influence and economic leverage over Latin American countries,” Rep. Jimmy Panetta, D-Calif., said in the release. “I’m proud to introduce this bipartisan legislation that would ensure the United States understands the full scope and scale of the CCP’s influence on the IDB and develop an action plan to counter potential malign actions.”
The proposed bill seeks to put an end to CCP coercion and mandating Treasury reporting on several aspects, such as "whether the CCP exploits the IDB to extend its influence," "the involvement of CCP technology subject to US export controls in IDB projects," "the extent of Chinese company influence and participation in IDB contracts" and more, according to the release.
"For too long, the United States has permitted Communist China to undermine our partnerships in the Western hemisphere through the Inter-American Development Bank," Rep. Elise Stefanik, R-N.Y., said in the release. "The critical bipartisan legislation we are introducing today will ensure U.S. taxpayer dollars are no longer funneled to CCP-controlled companies that undermine America’s interests and export the CCP’s oppressive surveillance capabilities in our own hemisphere. We cannot allow Communist China to exploit our institutions for their own malign interests."
