[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3017 Introduced in Senate (IS)]

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116th CONGRESS
  1st Session
                                S. 3017

To increase transparency and accountability with respect to World Bank 
  lending for the People's Republic of China, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 11, 2019

  Mr. Grassley (for himself and Mr. Cotton) introduced the following 
  bill; which was read twice and referred to the Committee on Foreign 
                               Relations

_______________________________________________________________________

                                 A BILL


 
To increase transparency and accountability with respect to World Bank 
  lending for the People's Republic of China, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Accountability for World Bank Loans 
to China Act of 2019''.

SEC. 2. FINDINGS.

    Congress finds as follows:
            (1) Possessing more than $3,000,000,000,000 in foreign 
        exchange reserves, the People's Republic of China has devoted 
        state resources to establish the Asian Infrastructure 
        Investment Bank, the New Development Bank, and activities under 
        the Belt and Road Initiative, potentially creating rivals to 
        the multilateral development banks led by the United States and 
        its allies.
            (2) The International Bank for Reconstruction and 
        Development (IBRD), the World Bank's primary financing 
        institution for middle-income countries, ceases to finance 
        (``graduates'') countries that are able to sustain long-term 
        development without recourse to Bank resources.
            (3) The IBRD examines a country's potential graduation when 
        the country reaches the Graduation Discussion Income (GDI), 
        which amounts to a Gross National Income (GNI) per capita of 
        $6,975.
            (4) The World Bank calculates China's GNI per capita as 
        equivalent to $9,470.
            (5) According to the Center for Global Development, China 
        has received $7,800,000,000 in IBRD commitments since crossing 
        the GDI threshold in 2016.

SEC. 3. UNITED STATES SUPPORT FOR GRADUATION OF CHINA FROM WORLD BANK 
              ASSISTANCE.

    (a) In General.--The United States Governor of the International 
Bank for Reconstruction and Development (in this section referred to as 
the ``IBRD'') shall instruct the United States Executive Director at 
the IBRD that it is the policy of the United States to pursue the 
expeditious graduation of the People's Republic of China from 
assistance by the IBRD, consistent with the lending eligibility 
criteria of the IBRD.
    (b) Sunset.--Subsection (a) shall have no force or effect on or 
after the earlier of--
            (1) the date that is 7 years after the date of the 
        enactment of this Act; or
            (2) the date that the Secretary of the Treasury reports to 
        the Committee on Financial Services of the House of 
        Representatives and the Committee on Foreign Relations of the 
        Senate that termination of subsection (a) is important to the 
        national interest of the United States, with a detailed 
        explanation of the reasons therefor.

SEC. 4. ACCOUNTABILITY FOR WORLD BANK LOANS TO THE PEOPLE'S REPUBLIC OF 
              CHINA.

    (a) In General.--Not later than 360 days after the date of the 
enactment of this Act, the United States Governor of the International 
Bank for Reconstruction and Development (in this section referred to as 
the ``IBRD'') shall submit the report described in subsection (b) to 
the Committee on Financial Services of the House of Representatives and 
the Committee on Foreign Relations of the Senate.
    (b) Report Described.--The report described in this subsection 
shall include the following:
            (1) A detailed description of the efforts of the United 
        States Governor of the International Development Association 
        and the United States Governor of the IBRD to enforce the 
        timely graduation of countries from the International 
        Development Association and the IBRD, with a particular focus 
        on the efforts with regard to the People's Republic of China.
            (2) If the People's Republic of China is a member country 
        of the IBRD, an explanation of any economic or political 
        factors that have prevented the graduation of the People's 
        Republic of China from the IBRD.
            (3) A discussion of any effects resulting from fungibility 
        and IBRD lending to China, including the potential for IBRD 
        lending to allow for funding by the Government of the People's 
        Republic of China of activities that may be inconsistent with 
        the national interest of the United States.
            (4) An action plan to help ensure that the People's 
        Republic of China graduates from the IBRD not later than 2 
        years after submission of the report, consistent with the 
        lending eligibility criteria of the IBRD.
    (c) Waiver of Requirement That Report Include Action Plan.--The 
Secretary of the Treasury may waive the requirement of subsection 
(b)(4) on reporting to the Committee on Financial Services of the House 
of Representatives and the Committee on Foreign Relations of the Senate 
that the waiver is important to the national interest of the United 
States, with a detailed explanation of the reasons therefor.

SEC. 5. ENSURING DEBT TRANSPARENCY WITH RESPECT TO THE BELT AND ROAD 
              INITIATIVE.

    Not later than 180 days after the date of the enactment of this 
Act, the Secretary of the Treasury shall submit to the Committee on 
Financial Services of the House of Representatives and the Committee on 
Foreign Relations of the Senate a report that includes the following:
            (1) An analysis of debt management assistance provided by 
        the World Bank, the International Monetary Fund, and the Office 
        of Technical Assistance of the Department of the Treasury to 
        borrowing countries of the Belt and Road Initiative of the 
        People's Republic of China (or any comparable initiative or 
        successor initiative of China).
            (2) A discussion of United States efforts at the World 
        Bank, the International Monetary Fund, and any other 
        international financial institution to promote debt 
        transparency with respect to credit provided by China.
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