Please note that this post contains affiliate links and any sales made through such links will reward MageeNews.com a small commission – at no extra cost to you.
Guest Introduces STOP Act, with Support from Colleagues, to Prevent Chinese Abuse of Developing Nation Status
Washington, D.C. – Congressman Michael Guest (MS-03) recently introduced the Securing Transparent Operations to Prevent (STOP) China’s Abuse of International Financing Act, along with original cosponsors: House Foreign Affairs Ranking Member Michael McCaul (TX-10), and Representatives Dan Crenshaw (TX-02), David McKinley (WV-01), Brian Mast (FL-18), and Brian Babin, D.D.S. (TX-36). The legislation aims to expose and prevent the China’s Communist Party (CCP) from abusing its false status as a “developing nation” to access international financing tools to further its geopolitical strategy across the globe.
“The history of the CCP’s influence in global financial institutions should worry freedom-loving people everywhere,” Rep. Michael Guest said. “The CCP is taking advantage of international financing reserved for struggling nations to further expand their Belt and Road Initiative (BRI) and predatory lending practices to actual developing nations. This legislation will expose the CCP for these practices and further prevent the abuses that lead to diminished freedoms and financial independence around the globe.”
“For too long the CCP has taken advantage of international institutions to further their goals at the expense of democracy and freedom,” Ranking Member of the Foreign Affairs Committee Michael McCaul said. “The CCP likes to say that China is a developing nation; the fact is it is not. We must continue the efforts of the Trump administration to delist China as a developing nation. I am proud to be an original cosponsor of this important legislation.”
“Any criteria that defines the second largest economy in the world as a ‘developing nation’ is clearly flawed,” said Rep. Brian Mast. “That mistake has allowed the Chinese Communist Party to take advantage of international financial institutions and given it an unfair boost over other countries. China is abusing the rules, so it’s time for some new ones.”
The CCP is using China’s status as a developing nation to influence IFIs through international banking practices. The STOP Act would bring transparency and accountability to China’s international financing by:
- Requiring a report from the Treasury Department to unveil China’s use of International Financial Institutions (IFIs) to advance its diplomatic goals;
- Expressing a Sense of Congress that China should not be considered a developing country by IFIs and other international organizations and that U.S. representatives to these institutions should work to ensure China is not considered a developing nation;
- Requiring the USTR to develop a strategy for ensuring U.S. trade agreements do not provide special treatment reserved for developing countries to those that are actually high income; and
- Prohibiting U.S. contributions to IFIs from being used to support contracts or procure goods from China.
You can view the full text of the bill by clicking here.
MageeNews.com is an online news source serving Simpson and surrounding counties as well as the State of Mississippi.
