IDB Transparency Act
This bill directs the U.S. Executive Director at the Inter-American Development Bank (IDB) to act to reduce China's influence and to promote greater transparency about China's role in the IDB.
Specifically, the U.S. Executive Director must vote and advocate to reduce the influence of China's government and Chinese companies at the IDB, including by opposing any IDB funding or projects that (1) are at least 10% funded by China or Chinese companies, and (2) present risks to U.S. national interests. Additionally, the U.S. Executive Director must vote against and take other actions to oppose the acquisition of IDB stock by China or Chinese companies.
The bill also directs the Department of the Treasury to provide Congress with a report on China's influence at the IDB, including an action plan to reduce Chinese involvement in IDB projects. If the report is not provided within 180 days of the bill's enactment, the U.S. Executive Director must vote against or act to prevent a quorum for any vote related to the IDB budget until the IDB takes available steps to provide to Treasury the information needed for the report.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 2470 Introduced in Senate (IS)]
<DOC>
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.
<all>
Introduced in Senate
Read twice and referred to the Committee on Foreign Relations.
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