Press Releases

WASHINGTON D.C. — Today, in a vote of 356 - 0, the House of Representatives passed H.R. 5932, Ensuring Chinese Debt Transparency Act introduced by Rep. French Hill (AR-02).

H.R. 5932 would require the United States to seek greater transparency from countries that obtain funding from both the Chinese government and the international financial institutions (IFIs), which include the International Monetary Fund, the World Bank, and regional development banks across the globe. The IMF lends to foreign countries in order to resolve balance of payment crises, whereas development banks focus on financing projects around the world with the aim to eliminating poverty. Across Asia, Europe, and Africa, China through its "Belt and Road" initiative has committed to lend and/or invest over $200 billion to 70 countries often with opaque financing terms. This legislation calls on greater transparency for these lending terms, holding the Chinese government to a higher accountability and ensuring they do not take advantage of vulnerable developing economies.

Following the bill’s passage, Representative Hill released the following statement:

“With the growth of China’s Belt and Road initiative, there is concern that countries borrowing from Beijing will be overburdened, falling into opaquely priced ‘debt traps.’ This may well force rescue by the IFIs, complicating their ability to underwrite loans for new projects. My bill that passed today will underscore the United States’ leadership and help develop a global, multi-lateral effort to ensure more scrutiny of China because as China becomes a major creditor nation, it must be held to the same high standards used by the IFI’s.”

Click here or on the image below to watch Rep. Hill’s statement at the committee markup.