Ending Lending to China Act of 2025
The Ending Lending to China Act of 2025 would formalize U.S. policy to oppose any further lending or technical assistance from multilateral development banks (MDBs) to the People’s Republic of China once China graduates from eligibility for such financing. It directs the Secretary of the Treasury to have the U.S. Executive Director at each MDB use the United States’ voice, vote, and influence to oppose new loans or assistance to China and to end lending to any country that exceeds the MDBs’ graduation income thresholds. The bill also requires annual (and then ongoing) reporting on China’s borrowing from MDBs, the composition of each bank’s governance with respect to China, which countries have exceeded or graduated from eligibility, and what the United States is doing to promote graduation. In short, it seeks to cut off new MDB financing to China and to systematically document and push for graduation from eligibility.
Key Points
- 1Oppose further MDB lending to China: The bill states the U.S. policy is to oppose any new loan or technical/financial assistance to the PRC from MDBs (e.g., World Bank’s IBRD and the Asian Development Bank) on the basis of China’s graduation from eligibility.
- 2Directs U.S. participation at MDBs: The Secretary of the Treasury must instruct the U.S. Executive Directors at each MDB to use the United States’ voice and votes to oppose such lending and to end lending to countries that exceed the graduation income threshold.
- 3Graduation threshold and rationale: Uses the MDBs’ graduation discussion income as the benchmark for ending eligibility. China is noted as having exceeded this threshold since 2016, which the bill uses to justify halting further lending.
- 4Annual reporting requirement: Within one year of enactment and annually thereafter, the Treasury must report on (1) China’s borrowing status at each MDB, (2) China’s voting power and representation at each bank, (3) which countries exceed the graduation income threshold, (4) which countries have graduated, and (5) U.S. efforts to graduate countries that exceed the threshold.
- 5Definitions and scope: Defines “multilateral development banks” consistent with the International Financial Institutions Act and specifies which congressional committees have oversight. It clarifies who counts as the “appropriate congressional committees” for reporting.