A bipartisan group of lawmakers introduced legislation Tuesday calling on the US to use its influence at a key development bank for Latin America to reduce China’s sway in the region.
(Bloomberg) — A bipartisan group of lawmakers introduced legislation Tuesday calling on the US to use its influence at a key development bank for Latin America to reduce China’s sway in the region.
Representative Mike Gallagher, the chairman of the Select Committee on the Chinese Communist Party, is proposing the legislation, alongside fellow Republican Senators Bill Hagerty of Tennessee and Marco Rubio of Florida. They’re joined by Democratic senators including Bob Menendez, chairman of the Senate Foreign Relations Committee and Tim Kaine.
The bills would require the Treasury Department to report to Congress on China’s activities and influence at the Washington-based Inter-American Development Bank, where the US holds the largest voting stake.
“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 a statement.
Read more: IDB Chief Pivots Latin America Bank Away From US-China Feud
China’s shareholding at the IDB is less than 1% — compared with 30% for the US — but membership lets the nation’s companies bid for infrastructure projects funded by the bank, where Beijing is a lead recipient of funds. China also has 5% voting power in IDB Invest, a private-lending arm, compared with 15% for the US.
The IDB lent more than $12 billion last year.
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