New EXIM, U.S. Department of State Procedures Improve National Interest Review Process, Including with Respect to Risks Posed by the People’s Republic of China
FOR IMMEDIATE RELEASE January 18, 2021
Office of Communications (202-565-3206)
WASHINGTON – The Export-Import Bank of the United States (EXIM) Board of Directors on January 14 unanimously approved a resolution adopting new procedures to improve the National Interest Review Process, including with respect to risks posed by the People’s Republic of China.
“EXIM’s historic bipartisan 2019 Congressional reauthorization is important on many fronts, including when it comes to the national interest, and I thank the staff at EXIM, as well as at the U.S. Departments of State and Treasury, for these important new procedures,” said EXIM President and Chairman Kimberly A. Reed.
Reed continued, “Throughout my tenure at EXIM, we have been focused on reform and transformation—including to the agency’s due diligence processes—and I commend my colleagues for efforts like this. The reauthorization legislation also contains a provision to ‘include coordination between the Secretary of State and the Director of National Intelligence, wherever appropriate,’ and I thank U.S. Secretary of State Michael Pompeo, U.S. Secretary of the Treasury Steven Mnuchin, and Director of National Intelligence John Ratcliffe for their support of EXIM and our efforts to keep America strong.”
The U.S. Congress, as part of EXIM’s 2019 reauthorization, requires EXIM to report to the U.S. House of Representatives Committee on Financial Services and U.S. Senate Committee on Banking, Housing, and Urban Affairs a summary of all potential EXIM loan and guarantee transactions greater than $25 million in which the government of China owns or controls the obligor, lender, or end-user.
The provision, Section 408 of the EXIM Reauthorization, also requires that EXIM consult with the U.S. Department of State regarding each such transaction “to assess any risks posed by the entity or the transaction to the national interest of the United States.” The reauthorization provision directs EXIM to consult with both the U.S. Department of State and U.S. Department of the Treasury in drafting procedures for the implementation of the provision for approval by the EXIM Board of Directors.
“I would like to recognize the constructive and collaborative process between the Department of State, Department of the Treasury, and EXIM on this important issue,” said EXIM Director and former Congressman Spencer Bachus. “This type of inter-agency cooperation will benefit all three parties, and the commitment to on-going dialogue demonstrates the dedication of each agency to continue to work together on these complex matters.”
“This is a truly historic and timely event,” said EXIM General Counsel David Slade. “At a time when the role of EXIM has never been more strategically important to protecting the U.S. national interest through the promotion of U.S. exports, a comprehensive and streamlined set of procedures like this are equally critical to protecting that interest in the most efficient and expeditious way possible. We are very grateful to the U.S. Departments of State and Treasury for their cooperation throughout the year-plus process of developing these procedures, and the Office of General Counsel is very proud and pleased to have played its part.”
As a result of these new procedures, there will now be one comprehensive and streamlined national interest review pursuant to which the U.S. Department of State will assess potential EXIM transactions for any human rights concerns or other risks they may pose to the U.S national interest, including, but not limited to, risks posed by the People’s Republic of China.
EXIM is an independent federal agency that promotes and supports American jobs by providing competitive and necessary export credit to support sales of U.S. goods and services to international buyers. A robust EXIM can level the global playing field for U.S. exporters when they compete against foreign companies that receive support from their governments. EXIM also contributes to U.S. economic growth by helping to create and sustain hundreds of thousands of jobs in exporting businesses and their supply chains across the United States. In recent years, approximately 90 percent of the total number of the agency’s authorizations has directly supported small businesses. Since 1992, EXIM has generated more than $9 billion for the U.S. Treasury for repayment of U.S. debt.
For more information about EXIM, please visit www.exim.gov.