Green Bay Reporter

Wisconsin Rep. Mike Gallagher (R-WI) and fellow lawmakers issued a statement on July 25 presenting the "Inter-American Development Bank Transparency Act," which is a bill with a main objective to curb the Chinese Communist Party's (CCP) coercion and influence in Latin American with particular regards to the Inter-American Development Bank (IDB).

"For too long, the Chinese Communist Party has exploited its presence in the Inter-American Development Bank to advance its own geopolitical, economic, and technological goals," said Gallagher, who is also the chairman of the House Select Committee on the Chinese Communist Party. " Latin American citizens deserve to have the IDB serve their economic development, not as a vector of CCP malign influence."

According to a release by the Select Committee on The CCP, the Inter-American Development Bank (IDB) is based in Washington D.C. and stands as the largest and foremost international financial institution serving Latin America and the Caribbean. In 2022, it allocated an impressive $23 billion toward financing sustainable economic and institutional development in the region.

This bipartisan bill was introduced by Gallagher along with Senator Bill Hagerty (R-TN), Senator Robert Menendez (D-NJ), Senator Marco Rubio (R-FL), Senator Tim Kaine (D-VA), Rep. Josh Gottheomer (D-NJ), Rep. Mario Diaz-Balart (R-FL) and Rep. Ruben Gallego (D-AZ.) Co-sponsors include 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).

While the CCP's ownership is only 0.1% of shares in the IDB, it remains a significant concern due to the ways the CCP leverages it, including pressuring other countries to comply with their demands. The proposed bill seeks to address this issue by aiming to put 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 Rep. 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.”

According to the press release, the bill involves using votes and influence at the IDB in an effort to stop the CCP's negative practices. The Treasury also needs to submit a report on whether the CCP has co-opted the IDB to read influence; the scope of Chinese company influences in IDB and its contracts; a list of IDB projects near U.S. military bases and information about the CCP technology.

"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 Rep. Elise Stefanik. "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."