Gallego, Gallagher, Colleagues Introduce Bill to Counter CCP Influence in Latin America
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PHOENIX, AZ – Rep. Ruben Gallego (AZ-03) joined House Select Committee on the Chinese Communist Party Chairman Mike Gallagher (WI-08), Senators Bill Hagerty (R-TN), Robert Menendez (D-NJ), Marco Rubio (R-FL), and Tim Kaine (D-VA), and Reps. Josh Gottheimer (NJ-05) and Mario Diaz-Balart (FL-26), today to introduce the bipartisan Inter-American Development Bank Transparency Act. The bill would require the Treasury to inform Congress of the CCP's coercive tactics at the Inter-American Development Bank and require the US to use its influence to facilitate transparency at the IDB and reduce the CCP’s influence in Latin America.
“Maintaining the United States’ partnership with our Latin American and Caribbean neighbors is critical to our nation’s economy and security,” said Rep. Gallego. “We must hold the PRC accountable for using the Inter-American Development Bank as a tool to expand its influence. I’m proud to co-lead this bipartisan legislation so we fully understand the PRC’s destabilizing activities in the Western Hemisphere.”
"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. Latin American citizens deserve to have the IDB serve their economic development, not as a vector of CCP malign influence," said Chairman Gallagher.
“The economic security of the Western Hemisphere is inextricably linked to the economic security of the United States, and it is vital that the United States work to counter the CCP’s efforts to gain a strategic foothold through investments in critical resources and infrastructure,” said Sen. Hagerty. “The U.S. is the IDB’s largest shareholder, but the PRC has leveraged the IDB to enhance its growing, nefarious influence in Latin America. I’m pleased to introduce this bipartisan legislation that will help put an end to the CCP’s attempts to use the IDB to advance its goals in Latin America.”
“The IDB is our hemisphere’s preeminent multilateral development bank, and has long provided financing to accelerate inclusive economic growth and build much-needed infrastructure across the region. As the People’s Republic of China continues to use economic tools to advance its coercive economic agenda across the Western Hemisphere, it’s more important than ever that we protect the integrity of the IDB and ensure its critical work can continue unhampered by Beijing’s interference,” said Sen. Menendez. “By strengthening transparency at the IDB and denying support to projects that undermine U.S. national interests or those of our partners, this important bipartisan legislation will bolster our commitment to the IDB while assuring the global community that we’re combatting efforts to exploit multilateral institutions.”
“The U.S. is the IDB’s largest shareholder. Yet, China’s genocidal regime continues to enhance and grow its leverage throughout our region, thanks to its debt trap diplomacy and Belt and Road Initiative. We must have a comprehensive action plan to reduce Beijing’s coercive and anti-democratic influence at the IDB,” said Sen. Rubio.
“The IDB is vital to bolstering Latin America’s development and prosperity, which benefits the security and economy of the United States,” said Sen. Kaine. “It’s critical that we push back on China’s malign influence in the IDB to protect economic growth, national security, and good governance in the region. This bipartisan bill would help us do just that.”
“We know that the Chinese government views the U.S. as an enemy and we need to be very wary of their hegemonic march. They’ve spent trillions outside of China to try to gobble up new allies around the world — with no real interest in helping develop countries or strengthen the global economy,” said Rep. Gottheimer. “I’m proud to help introduce the IDB Transparency Act because we need to take concrete action to protect national security, bolster American competitiveness, safeguard our infrastructure and economy, and fight back against foreign aggression. China is our biggest global threat and we need to treat their nefarious influence and involvement in the IDB seriously.”
“I cosponsored this important, bipartisan bill because it will bring much-needed transparency to the IDB, including a full assessment of the PRC’s undue influence and malign activities within that multilateral institution. The PRC has already spread its damaging influence throughout our hemisphere, and this bill is important to ensuring that the activities of the PRC are thoroughly uncovered, monitored, and diminished. I commend Rep. Gallagher for his leadership in tackling the pervasive threat posed by the PRC, and look forward to continuing to work with him on this critical national security issue,” said Rep. Díaz-Balart.
As the most important development institution in the Americas, and with over $23 billion in annual financing last year, the IDB is vital to the development of Latin America. But the CCP has leveraged the IDB to enhance its growing, malign influence in Latin America.
Despite owning just 0.1% of share in the IDB, the CCP is consistently ranked among the top countries awarded contracts by the IDB. The CCP has even used its economic leverage to pressure nations to bend to the Party’s will, notably pressuring IDB member Paraguay to abandon Taiwan in exchange for vaccines.
This bill would require the use of the US voice, vote, and influence at the IDB to counter the Chinese Communist Party's malign influence and coercive practices, and require Treasury to submit a report on, among other things:
Reps. Elise Stefanik (NY-21), Jimmy Panetta (CA-19), Carlos Gimenez (FL-28), Rick Larsen (WA-02), and Marc Veasey (TX-33) are also cosponsors of the legislation.
"For too long, the United States has permitted Communist China to undermine our partnerships in the Western hemisphere through the Inter-American Development Bank," said Rep. Stefanik. "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."
“The Chinese Communist Party is increasingly utilizing the Inter-American Development Bank to expand its reach, influence, and economic leverage over Latin American countries,” said Rep. Panetta. “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. Ensuring U.S. leadership in the development of our Latin American partners is essential to safeguarding our national and economic security as well as our shared democratic values.”
“The murderous Communist regime in Beijing continues to employ nefarious tactics to threaten our neighbors in Latin America and to undermine America’s influence across the Western Hemisphere,” said Rep. Giménez. “I am proud to cosponsor this commonsense, bipartisan legislation that demands greater transparency from the Inter-American Development Bank (IDB) and limits the CCP’s continued weaponization of this landmark institution.” |