[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 2470 Introduced in Senate (IS)]

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118th CONGRESS
  1st Session
                                S. 2470

   To increase transparency regarding the activities, and reduce the 
   malign influence of, the People's Republic of China in the Inter-
           American Development Bank, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 25, 2023

   Mr. Hagerty (for himself, Mr. Menendez, Mr. Rubio, and Mr. Kaine) 
introduced the following bill; which was read twice and referred to the 
                     Committee on Foreign Relations

_______________________________________________________________________

                                 A BILL


 
   To increase transparency regarding the activities, and reduce the 
   malign influence of, the People's Republic of China in the Inter-
           American Development Bank, 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 ``IDB Transparency Act''.

SEC. 2. REPORT ON INFLUENCE OF THE PEOPLE'S REPUBLIC OF CHINA AT THE 
              INTER-AMERICAN DEVELOPMENT BANK.

    (a) In General.--Within 180 days after the date of the enactment of 
this Act, the Secretary of the Treasury, in consultation with the 
Secretary of State, shall submit to the appropriate congressional 
committees a report that includes the following:
            (1) The scope and scale of the influence of the PRC and PRC 
        companies in the IDB, including in--
                    (A) the organization and personnel of the IDB;
                    (B) IDB governance and transparency;
                    (C) the financing of the IDB;
                    (D) determinations around which projects to fund or 
                finance;
                    (E) deliberations regarding the involvement or 
                membership of Taiwan in the IDB; and
                    (F) any other modes through which the PRC or PRC 
                companies influence the IDB.
            (2) A complete list of all projects of the IDB that include 
        financing or funding from the PRC, PRC companies, or PRC trust 
        funds created at the IDB since the PRC joined the IDB as a 
        member country on January 12, 2009, including--
                    (A) the title and identification number of the 
                project;
                    (B) a description of the project;
                    (C) the location of the project;
                    (D) the amount of funding or financing initially 
                allocated for the project;
                    (E) the amount of funding or financing disbursed 
                under the project;
                    (F) a summary of the status of the implementation 
                of the project; and
                    (G) a description of any incidents in which funding 
                or financing for a project has been disbursed, but has 
                not been implemented or completed.
            (3) A complete list of the projects of the IDB in which PRC 
        companies participate, whether through direct or indirect 
        procurement or other contracting, including--
                    (A) the title and identification number of the 
                project;
                    (B) a description of the project;
                    (C) the location of the project;
                    (D) the amount of funding or financing initially 
                allocated for the project;
                    (E) the amount of funding or financing disbursed 
                under the project;
                    (F) the name of the participating PRC companies 
                and, in the case of each such company, whether the 
                participation consists of direct or indirect 
                procurement or other contracting;
                    (G) the amount of funding or financing received by 
                the PRC companies under the project;
                    (H) a summary of the work conducted by the PRC 
                companies as part of direct or indirect procurement or 
                other contracting; and
                    (I) a description of any incidents in which the PRC 
                companies received funding or financing as part of a 
                direct or indirect procurement or other contracting, 
                but required work has not been implemented or 
                completed.
            (4) A full review of projects described in paragraphs (2) 
        and (3) to assess whether any of the projects featured any 
        human rights abuses, delays, corruption, or poor results, and 
        an analysis of the procurement practices involved in the 
        projects.
            (5) The extent to which--
                    (A) the IDB uses equipment or services produced by 
                technology providers covered by section 2 of the Secure 
                and Trusted Communications Networks Act of 2019 or PRC 
                companies on the list of entities set forth in 
                Supplement No. 4 to part 744 of the Export 
                Administration Regulations, set forth in subchapter C 
                of chapter VII of title 15, Code of Federal 
                Regulations, or any successor regulations; or
                    (B) projects funded or financed by the IDB use 
                technology provided by the providers or entities.
            (6) A review of how and to what extent the PRC has used the 
        IDB to, within IDB member countries--
                    (A) spread the diplomatic, economic, and military 
                influence of the PRC;
                    (B) promote the adoption and use of technologies of 
                PRC companies; and
                    (C) promote the preferred values of the PRC.
            (7) An action plan for the Executive Director to work to 
        reduce the involvement of the PRC and PRC companies in the IDB 
        and projects funded or financed by the IDB, as determined under 
        this subsection.
            (8) The extent to which PRC persons sanctioned by the 
        United States serve in leadership or management positions in 
        PRC companies working on IDB-funded or IDB-financed projects.
            (9) The extent to which the PRC has used its voice, vote, 
        and influence in the IDB to promote the interests of the PRC at 
        the expense of regional development interests.
            (10) A summary of the in-depth reviews conducted under 
        section 3(a)(2)(A) of this Act.
            (11) A list of IDB projects funded by the PRC or PRC 
        companies assessed to pose a risk to United States interests 
        due to their proximity to a cooperative security location, a 
        United States military installation outside the contiguous 
        United States, or a military installation of a partner or ally 
        of the United States.
    (b) Subsequent Reports.--Within 2 years after the Secretary submits 
the report required by subsection (a), and every 2 years thereafter for 
8 years, the Secretary shall submit to the appropriate congressional 
committees a report that includes--
            (1) any updates to information included in all reports 
        submitted under subsection (a); and
            (2) any new information related to the matters described in 
        subsection (a).
    (c) Format.--The reports required under subsections (a) and (b) 
shall be submitted to the appropriate congressional committees in 
unclassified form, but may include a classified annex.
    (d) Public Availability.--Not earlier than 60 days, and not later 
than 90 days, after the Secretary submits a report required by 
subsection (a) or (b), the Secretary shall post an unclassified summary 
of the report on a public-facing web page of the Department of the 
Treasury and the Secretary of State shall post such summary on a 
public-facing web page of the Department of State.

SEC. 3. REQUIRED USE OF UNITED STATES VOICE, VOTE, AND INFLUENCE AT THE 
              INTER-AMERICAN DEVELOPMENT BANK.

    (a) In General.--The Secretary of the Treasury shall instruct the 
United States Executive Director at the Inter-American Development Bank 
to use the voice, vote, and influence of the United States to do the 
following:
            (1) Facilitate greater IDB transparency about the role of 
        the PRC and PRC companies in the IDB, including by fostering a 
        more open release policy toward working papers, past 
        evaluations, and other IDB documents.
            (2) Reduce the influence of the PRC and PRC companies in 
        all IDB deliberations, activities, and projects, including by--
                    (A) conducting an in-depth review of all projects, 
                financing, loans, and grants in which at least 10 
                percent of--
                            (i) the funding or financing for such a 
                        project, financing, loan, or grant comes from 
                        the PRC or PRC companies; or
                            (ii) the value of direct or indirect 
                        procurements or other contracting for such a 
                        project, financing, loan, or grant is provided 
                        to PRC companies; and
                    (B) voting against or taking action to prevent a 
                quorum for all votes related to--
                            (i) any project, financing, loan, or grant 
                        for which the in-depth review required in 
                        subparagraph (A) determines presents risks to 
                        United States national interests; and
                            (ii) any project, financing, loan, or grant 
                        that would include the participation of PRC 
                        trust funds created with the IDB.
            (3) Beginning 180 days after date of the enactment of this 
        Act, if the Secretary has failed to submit the report required 
        by section 2, vote against, or take action to prevent a quorum 
        for all votes related to, IDB budgets until the IDB takes 
        available steps to provide the Secretary with the information 
        required for the Secretary to prepare and submit the report.
            (4) Vote against, or withhold quorum for all votes related 
        to, the issuance, sale, or transfer of additional shares of 
        stock in the IDB to the PRC.
    (b) Waiver.--The Secretary may waive the requirements of subsection 
(a)(3) on a case-by-case basis if the Secretary certifies and reports 
to the appropriate congressional committees before the waiver is 
exercised that the waiver would serve a national interest of the United 
States or address basic human needs.

SEC. 4. DEFINITIONS.

    In this Act:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Foreign Relations of the 
                Senate; and
                    (B) the Committee on Financial Services of the 
                House of Representatives.
            (2) Executive director.--The term ``Executive Director'' 
        means the United States Executive Director at the IDB.
            (3) IDB.--The term ``IDB'' means all of the current and 
        former institutions in the IDB Group, including the Inter-
        American Development Bank, IDB Invest, IDB lab, and any related 
        predecessor entities.
            (4) PRC.--The term ``PRC''--
                    (A) means the People's Republic of China; and
                    (B) includes any and all Special Administrative 
                Regions of China, including Hong Kong and Macau but not 
                including Taiwan.
            (5) PRC companies.--The term ``PRC companies'' means any 
        corporation, company, limited liability company, limited 
        partnership, business trust, business association, or other 
        similar entity owned by, controlled by, or subject to the 
        jurisdiction or direction of the Government of the PRC.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
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