Washington, DC – Today, U.S. Representatives Young Kim (CA-40) and Joyce Beatty (OH-03) introduced the Strengthening Exports Against China Act (SEACA), a bipartisan and bicameral bill that would promote U.S. competitiveness in emerging technologies and counter export subsidies provided by the Chinese Communist Party (CCP).
Currently, the China and Transformational Exports Program (CTEP), which aims to counter CCP export subsidies at the Export-Import Bank (Ex-Im), is struggling to finance export projects due to the two percent default cap rate.
The Strengthening Exports Against China Act would exclude from the two percent default rate cap CTEP export financing deals and projects in direct competition with the CCP. Additionally, the legislation excludes from the default rate cap U.S. exports in competition with goods and services in the Department of Commerce’s Export Control Entity List or provided by entities sanctioned by the Department of Treasury, such as Huawei and ZTE.
“We must ensure our policies work to support U.S. innovation and counter the Chinese Communist Party’s coercive economic tactics,” said Kim. “The Strengthening Exports Against China Act bolsters American leadership in emerging technologies and increases our competitiveness against the CCP. I’m proud to lead this bipartisan, bicameral initiative to project U.S. strength on the world stage.”
“I am proud to join Congresswoman Kim in leading this bill to strengthen the U.S. Export-Import Bank and give it greater flexibility to help U.S. exporters compete with China,” said Beatty. “As we prepare for reauthorization later this Congress, we must identify key improvements that will allow EXIM to more effectively carry out its mission to help American businesses successfully compete abroad.”
Companion legislation was introduced in the U.S. Senate by Senators Mike Rounds (R-SD) and Catherine Cortez Masto (D-NM).
“It’s time for fair competition on the global stage,” said Rounds. “We must level the playing field for U.S. exporters when they’re up against firms backed by the Chinese Communist Party’s opaque financing. The Strengthening Exports Against China Act would allow the Export Import Bank to increase export financing and insurance support to U.S. firms that export products in direct competition with China.”
“The Chinese Communist Party provides massive subsidies and financing for businesses in emerging industries. To remain competitive, the United States needs to do more to support innovative businesses here at home,” said Cortez Masto. “My bipartisan legislation will support more American businesses directly competing with China to help them make breakthroughs in AI, critical mineral mining and processing, and other transformational areas.”
Read the bill HERE.
