Lawmakers Target China's Role in IDB

A bipartisian group of lawmakers Tuesday introduced the Inter-American Development Bank Transparency Act. which would require the Treasury Department to inform Congress of PRC influence at the Inter-American Development Bank (IDB) and compel the US to encourage transparency at the IDB and reduce Chinese influence in Latin America.

“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,” said Sen.Bill Hagerty (R-TN).

“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” said Sen.Bob Menendez (D-NJ), Chairman of the Senate Foreign Relations Committee

 According to the bill’s sponsors, "despite owning just 0.1% of share in the IDB," China ranks among the top countries awarded contracts by the IDB.  No evidence was provided to support this claim.

By another measure, FY 2022 Credited Contributions to Trust Funds, the PRC ranked third as a donor, behind the World Bank and South Korea, having donated $59 million.   The US contribution was $400,000, less than the Pepsi Foundation's.

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 and State to submit a report on, among other things:

1. Whether China has co-opted the IDB to spread its influence.
2. The scope and scale of any Chinese company’s influence and involvement in IDB or IDB contracts.
3. A list of IDB projects near U.S. military bases in the region.
4. The extent of Chinese tech subject to US export controls [sic] involved in IDB projects.

[Text of Bill]