[Congressional Record Volume 169, Number 55 (Monday, March 27, 2023)]
[House]
[Pages H1449-H1451]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  PRC IS NOT A DEVELOPING COUNTRY ACT

  Mr. SMITH of New Jersey. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 1107) to direct the Secretary of State to take 
certain actions with respect to the labeling of the People's Republic 
of China as a developing country, and for other purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 1107

       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 ``PRC Is Not a Developing 
     Country Act''.

     SEC. 2. STATEMENT OF POLICY.

       It should be the policy of the United States--
       (1) to oppose the labeling or treatment of the People's 
     Republic of China as a developing country in any treaty or 
     other international agreement to which the United States is a 
     party;
       (2) to oppose the labeling or treatment of the People's 
     Republic of China as a developing country in each 
     international organization of which the United States is a 
     member; and
       (3) to pursue the labeling or treatment of the People's 
     Republic of China as an upper middle income country, high 
     income country, or developed country in each international 
     organization of which the United States is a member.

     SEC. 3. REPORT.

       Not later than 180 days after the date of the enactment of 
     this Act, the Secretary shall submit to the appropriate 
     committees of Congress a report identifying all current 
     treaty negotiations in which--
       (1) the proposed treaty develops different standards for 
     the enforcement of the treaty based on the development status 
     of the member states of the treaty; and
       (2) the People's Republic of China is under consideration 
     for becoming a party to the treaty.

     SEC. 4. MECHANISMS FOR CHANGING THE DEVELOPMENT STATUS OF THE 
                   PEOPLE'S REPUBLIC OF CHINA.

       (a) In General.--In any international organization of which 
     the United States and the People's Republic of China are both 
     current member states, the Secretary, in coordination with 
     the heads of other Federal agencies and departments as 
     needed, shall pursue--
       (1) changing the status of the People's Republic of China 
     from developing country to upper middle income country, high 
     income country, or developed country if a mechanism exists in 
     such organization to make such a change in status;
       (2) proposing the development of a mechanism described in 
     paragraph (1) to change the status of the People's Republic 
     of China in such organization from developing country to 
     developed country; or
       (3) regardless of efforts made pursuant to paragraphs (1) 
     and (2), working to ensure that the People's Republic of 
     China does not receive preferential treatment or assistance 
     within the organization as a result of it having the status 
     of a developing country.
       (b) Waiver.--The President may waive the application of 
     subsection (a) with respect to any international organization 
     if the President notifies the appropriate committees of 
     Congress, not later than 10 days before the date on which the 
     waiver shall take effect, that such a waiver is in the 
     national interests of the United States.

     SEC. 5. DEFINITIONS.

       In this Act:
       (1) Appropriate committees of congress.--The term 
     ``appropriate committees of Congress'' means--
       (A) the Committee on Foreign Affairs and the Committee on 
     Ways and Means of the House of Representatives; and
       (B) the Committee on Foreign Relations of the Senate.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of State.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New 
Jersey (Mr. Smith) and the gentlewoman from Pennsylvania (Ms. Wild) 
each will control 20 minutes.
  The Chair recognizes the gentleman from New Jersey.


                             General Leave

  Mr. SMITH of New Jersey. Mr. Speaker, I ask unanimous consent that 
all Members may have 5 legislative days to revise and extend their 
remarks and to include extraneous material on this measure.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from New Jersey?
  There was no objection.
  Mr. SMITH of New Jersey. Mr. Speaker, I yield such time as she may 
consume to the gentlewoman from California (Mrs. Kim), who chairs the 
Foreign Affairs Subcommittee on Indo-Pacific and is the author of this 
important legislation.
  Mrs. KIM of California. Mr. Speaker, I thank Congressman Chris Smith 
for yielding me the time.
  I rise in strong support of H.R. 1107, the PRC Is Not a Developing 
Country Act. This is a bipartisan bill I introduced with my colleague 
Gerry Connolly to address the People's Republic of China's exploitation 
of its status as a developing country in treaties and in international 
organizations.
  The People's Republic of China is the world's second largest economy, 
accounting for 18.6 percent of the global economy. Their economy size 
is second only to the United States. The United States is treated as a 
developed country, and so should the PRC. The United States is also 
treated as a high-income country in treaties and international 
organizations, so China should also be treated as a developed country.
  However, the PRC is still classified as a developing country, and 
they are using this status to game the system and hurt countries that 
are truly in need.
  The PRC exploits their developing country status by applying for 
development assistance and loans from international organizations, 
despite spending trillions on infrastructure projects in developing 
countries as part of the debt trap diplomacy scheme known as the Belt 
and Road Initiative. In fact,

[[Page H1450]]

PRC's withdrawal of loans takes away from actual developing countries 
and helps the PRC finance its Belt and Road program.
  We are long overdue to level the playing field. This legislation 
rights this wrong by requiring the Secretary of State to oppose the 
labeling or treatment of the PRC as a developing country in any 
international organization or treaty to which the United States is a 
party.

                              {time}  1730

  It also directs the Secretary to seek mechanisms in international 
organizations to change the status of the PRC from a developing to 
developed country.
  We cannot let the PRC continue exploiting countries in need and take 
unfair advantage of international treaties and organizations. It is 
time that we give developing countries a better chance at participating 
in programs that are meant for them and not meant for the world's 
second-largest economy.
  Mr. Speaker, I urge all of my colleagues to vote ``yes.''
  Ms. WILD. Mr. Speaker, I yield myself such time as I may consume, and 
I rise in support of H.R. 1107.
  Mr. Speaker, the People's Republic of China, PRC, is the biggest 
emitter of greenhouse gases in the entire world. Yet, for too long, it 
has shirked its responsibility to do more to combat climate change on 
the world stage. The PRC does this by seeking and securing the status 
of a ``developing country'' in international treaties and 
organizations, despite being the world's second-largest economy.
  This kind of special treatment needs to stop. China needs to pay its 
fair share to fight global challenges.
  That is why I stand here today to support the bipartisan measure by 
my colleagues Representative Young Kim and Representative Gerry 
Connolly.
  H.R. 1107 calls on the State Department to work diplomatically within 
all relevant international organizations and treaties where China is 
treated as a developing nation to change its status. It is time that 
the PRC should be ascribed the responsibilities commensurate with its 
global impact and power.
  The bill also ensures that U.S. diplomats will work to create 
mechanisms to consider such a change if they do not already exist. Most 
importantly, it will authorize our diplomats to work to ensure that the 
PRC is not getting special treatment regardless of the status it has.
  Right now, China gets to have its cake and eat it, too. It is 
bolstering its influence and presence in international organizations 
and treaties, all the while avoiding having to contribute its 
appropriate share to solving global problems.
  The PRC claims it is a responsible global power. This bill aims to 
hold it accountable by asking it to accept greater burden-sharing for 
global problems. This is an important measure.
  Mr. Speaker, I encourage my colleagues to support this bill, and I 
reserve the balance of my time.
  Mr. SMITH of New Jersey. Mr. Speaker, I yield myself such time as I 
may consume.
  Mr. Speaker, the United States and other developed nations of the 
world need to stop underwriting the belligerent expansion of the 
Chinese Communist Party's influence around the world.
  Since 1978, the economy of the People's Republic of China has 
reportedly grown 9 percent a year on average. Today, the PRC is the 
world's second-largest economy and is a top goods exporter. Look at our 
balance of trade. Its outward direct investment exceeds that of 32 of 
the 36 OECD countries, and China's defense expenditures and number of 
satellites in space are second in the world, only behind the United 
States.
  That is why it is ridiculous that the PRC is still considered a 
developing country by international financial institutions, or IFIs, 
and in various treaty provisions intended to benefit genuinely poor 
nations. That designation allows the PRC to pay less in United Nations 
dues and assessments; it allows them to avoid stricter requirements in 
certain environmental agreements; and it allows the PRC to get 
preferential loans from international financial institutions, which the 
PRC then uses to offer predatory and unfair loans to actual developing 
countries, countries such as Sri Lanka, Djibouti, and Uganda, which 
have been placed into debt bondage by the PRC, often accompanied by 
bribery and corruption of local officials.
  This is just one way the PRC distorts the global economy through 
unfair trade and lending practices while hurting countries that are 
actually still genuinely developing.
  Mr. Speaker, I thank my good friend from California, Young Kim, who 
chairs the Foreign Affairs Subcommittee on the Indo-Pacific, for 
introducing this bill. It is smart, targeted legislation. I thank Gerry 
Connolly for his chief cosponsorship, as well.
  This legislation clearly states that the PRC is no longer a 
developing country and that the United States should seek to ensure 
that any future treaties, conventions, or organizations we are a part 
of do not treat the PRC as one.
  The world must stop allowing the PRC to siphon benefits from other 
nations by taking advantage of an outdated and inaccurate developing 
country status.
  Mr. Speaker, I urge support for the legislation, and I reserve the 
balance of my time.

                                         House of Representatives,


                                 Committee on Foreign Affairs,

                                   Washington, DC, March 23, 2023.
     Hon. Jason Smith,
     Chairman, Committee on Ways and Means,
     Washington, DC.
       Dear Chairman Smith: Thank you for agreeing to forgo 
     pursuing a sequential referral of H.R. 1107, the ``PRC is Not 
     a Developing Country Act,'' so that the measure may proceed 
     expeditiously to the House floor. As requested, the Committee 
     on Ways and Means has been added as a recipient of the report 
     required by this bill.
       I agree that your forgoing action on this measure does not 
     in any way diminish or alter the jurisdiction of your 
     committee, or prejudice its jurisdictional prerogatives on 
     this measure or similar legislation in the future.
       I will seek to place our letters on this bill into the 
     Congressional Record during floor consideration. I appreciate 
     your cooperation regarding this legislation and look forward 
     to continuing to work together as this measure moves through 
     the legislative process.
           Sincerely,
                                                Michael T. McCaul,
     Chairman.
                                  ____

                                         House of Representatives,


                                  Committee on Ways and Means,

                                   Washington, DC, March 23, 2023.
     Hon. Michael McCaul,
     Chairman, Committee on Foreign Affairs,
     Washington, DC.
       Dear Chairman McCaul, I am writing with respect to H.R. 
     1107, the ``PRC is Not a Developing Country Act.'' As a 
     result of your having consulted with us on provisions on 
     which the Committee on Ways and Means has a jurisdictional 
     interest, I will not request a sequential referral on this 
     measure.
       The Committee on Ways and Means takes this action with the 
     mutual understanding that we do not waive any jurisdiction 
     over the subject matter contained in this or similar 
     legislation, and the Committee will be appropriately 
     consulted and involved as the bill or similar legislation 
     moves forward so that we may address any remaining issues 
     that fall within our jurisdiction. The Committee also 
     reserves the right to seek appointment of an appropriate 
     number of conferees to any House-Senate conference involving 
     this or similar legislation, and requests your support for 
     such request.
       Finally, I would appreciate your response to this letter 
     confirming this understanding and would ask that a copy of 
     our exchange of letters on this matter be included in the 
     Congressional Record during floor consideration of H.R. 1107.
           Sincerely,
                                                      Jason Smith,
                                                         Chairman.

  Ms. WILD. Mr. Speaker, I yield myself the balance of my time.
  Mr. Speaker, H.R. 1107 is an important bipartisan measure that calls 
out the People's Republic of China for failing to do its part in 
international organizations and treaties and calls on it to do more.
  At the same time, the diplomatic actions that this measure calls for 
highlight just how critical it is that the United States remain engaged 
and present in international and multilateral forums and treaties.
  We can only shape global decisions for the benefit of U.S. interests 
and can only counter the PRC if we are in the room. We have to 
negotiate and engage in diplomacy to advance our interests. Otherwise, 
as we have seen repeatedly, when the United States is absent or silent, 
China immediately swoops in to drive the international policy 
conversation and agenda in the direction it wants.
  I support this bipartisan measure because it deepens both U.S. 
engagement

[[Page H1451]]

in international treaties and organizations while trying to effectively 
counter the PRC's own self-interested actions in these forums.
  Mr. Speaker, I hope my colleagues will join me and support this 
important bill, and I yield back the balance of my time.
  Mr. SMITH of New Jersey. Mr. Speaker, I urge unanimous support by 
this body for this important legislation, and I yield back the balance 
of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from New Jersey (Mr. Smith) that the House suspend the rules 
and pass the bill, H.R. 1107, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. SMITH of New Jersey. Mr. Speaker, on that I demand the yeas and 
nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further 
proceedings on this motion will be postponed.

                          ____________________