Old Dominion News

Virginia Senator Tim Kaine (D-VA) and a group of fellow lawmakers issued a statement on July 25 presenting the "Inter-American Development Bank Transparency Act." The primary objective of this bill is to curb the CCP's coercion and influence in Latin America, particularly regarding the Inter-American Development Bank (IDB).

"The IDB is vital to bolstering Latin America’s development and prosperity, which benefits the security and economy of the United States," Kaine said in a statement by the Select Committee on the CCP. It’s critical that we push back on China’s malign influence in the IDB to protect economic growth, national security, and good governance in the region. This bipartisan bill would help us do just that.

The IDB is headquartered in Washington, D.C. and is the largest and foremost international financial institution serving Latin America and the Caribbean. In 2022, it allocated $23 billion to go toward financing sustainable economic and institutional development in the region, according to a press release.

While the CCP owns only 0.1% of shares in the IDB, it remains a significant concern due to the ways the CCP leverages it. This includes pressuring other countries to comply with their demands. The proposed bill seeks to address this issue focusing on putting an end to CCP coercion and mandating Treasury reporting on several aspects, such as "whether the CCP exploits the IDB to extend its influence", "the involvement of CCP technology subject to US export controls in IDB projects", and "the extent of Chinese company influence and participation in IDB contracts", and more, according to a press release.

“The Chinese Communist Party is increasingly utilizing the Inter-American Development Bank to expand its reach, influence, and economic leverage over Latin American countries,” said California Rep. Jimmy Panetta, according to a press release. “I’m proud to introduce this bipartisan legislation that would ensure the United States understands the full scope and scale of the CCP’s influence on the IDB and develop an action plan to counter potential malign actions.”

The press release stated that the bill would lead to using U.S. votes and influence at the IDB to "counter the Chinese Communist Party's malign influence and coercive practices." The Treasury would also need to file a report about whether the CCP co-opted the IDB in an effort to spread influence; information about the influence of Chinese companies in the IDB; a list of IDB projects around U.S. military bases; and how CCP technology is used.

"For too long, the United States has permitted Communist China to undermine our partnerships in the Western hemisphere through the Inter-American Development Bank," said New York Rep. Elise Stefanik, according to a press release. "The critical bipartisan legislation we are introducing today will ensure U.S. taxpayer dollars are no longer funneled to CCP-controlled companies that undermine America’s interests and export the CCP’s oppressive surveillance capabilities in our own hemisphere. We cannot allow Communist China to exploit our institutions for their own malign interests."

Kaine along with Chairman Mike Gallagher (R-WI) of the House Select Committee on the Chinese Communist Party, Senators Bill Hagerty (R-TN), Robert Menendez (D-NJ), Marco Rubio (R-FL), and Reps. Josh Gottheimer (D-NJ), Mario Diaz-Balart (R-FL), and Ruben Gallego (D-AZ), introduced the act. House GOP Conference Chair Elise Stefanik (R-NY), and Reps. Jimmy Panetta (D-CA), Carlos Gimenez (R-FL), Rick Larsen (D-WA), Rep. Michael Waltz (R-FL), and Marc Veasey (D-TX) cosponsor the legislation.