What They Are Saying: EXIM's Board Unanimously Approves Historic Policy to Support U.S. Exporters Competing with the People's Republic of China
WASHINGTON - The Export-Import Bank of the United States (EXIM) Board of Directors yesterday voted to establish a content policy specific to the agency's Program on China and Transformational Exports after a comprehensive stakeholder outreach and public comment period, establishing a path for U.S. exporters in ten transformational export sectors to utilize EXIM support.
Trade associations, financial institutions, transformational export companies, and other interested stakeholders voiced their support throughout the process as EXIM worked to modernize its content policy, including during EXIM's Strengthening American Competitiveness Initiative that engaged 1,100 stakeholders (May-Sept, 2020), Annual Conference , Board of Directors and Advisory Committee Meetings, and Public Comment Period.
U.S. GOVERNMENT OFFICIALS
- Wilbur Ross, Secretary of Commerce, U.S. Department of Commerce and EXIM Board Member ex officio - Remarks from EXIM's Board Meeting on Dec 17, 2020.
- Keith Krach, Undersecretary, U.S. Department of State - "The continued expansion of companies like Huawei and ZTE, backed by the financial power of the People's Republic of China, threatens the security and integrity of telecom networks around the world. EXIM today performed a great service to America's economic and national security by modernizing its U.S. content policy. This expansion of the scope of U.S. financing available for 5G deals will help secure people's data, companies' intellectual property, and countries' national security." (EXIM Board Meeting, Dec 17, 2020)
- Representative Andy Barr (KY-06)- "We know that it's well intentioned to have a domestic content requirement, but when we're competing in the telecommunications space, in particular 5G, we need to change that domestic content requirement because right now we cannot compete with China in 5G without partnerships. And that's the most important thing to work in a multilateral way with our allies to displace Huawei and displace China's malign efforts to dominate 5G that is critically important from an economic competitiveness standpoint, but also in terms of national security." (EXIM Annual Conference, Sept 10, 2020)
FORMER GOVERNMENT OFFICIALS
- Former Speaker of the U.S. House of Representatives Newt Gingrich - "EXIM's move to lower content requirements is essential to ensure that US exporters have the opportunity compete with global suppliers, promote US jobs and industry, and enhance national security interests."
INDUSTRY AND ADVOCACY ORGANIZATIONS AND THINK TANKS
- U.S. Chamber of Commerce - "The Chamber views EXIM as one of the most important tools at the disposal of U.S. companies to level the playing field for trade finance as they seek to increase exports and create American jobs. The domestic content reforms proposed by EXIM would help U.S. firms in these transformation industries to be able to compete on the global stage." (Regulations.gov, Dec 11, 2020)
- National Association of Manufacturers - "In order to fulfill this congressional mandate, the Ex-Im Bank is right to consider appropriate changes to its content policy, where necessary, to allow more manufacturers in the United States to have the opportunity to compete in today's global market. Such changes will better reflect the realities of global supply chains in many sectors and result in more exports from the United States." (Regulations.gov, Dec 14, 2020)
- Information Technology Industry Council - "We support EXIM's proposal to modify its U.S. content rules in the technology areas listed. We think this will help EXIM to support more transactions, bolstering the competitiveness of the United States and solidifying technological leadership." (Regulations.gov, Dec 14, 2020)
- Bankers Association for Finance and Trade - "U.S. stakeholders and financial institutions regularly identify EXIM's content policy as the greatest challenge to EXIM's ability to support U.S. exports. Changes to EXIM's content policy would help level the 'playing field' for Export Credit Agency (ECA) financing, enhance the effectiveness of EXIM's programs, and significantly improve U.S. exporters' global competitiveness." (Regulations.gov, Dec 10, 2020)
- Nuclear Energy Institute - "U.S. competitiveness against China and Russia in international nuclear energy markets demands a more flexible approach to content requirements To maximize the U.S. content in such projects and the number of American jobs supported, Ex-Im Bank must have greater flexibility to balance U.S. content requirements with the competitiveness of the U.S. offer." (Regulations.gov, Dec 11, 2020)
- Silicon Valley Defense Group - "As a matter of economic security and competitiveness, we support efforts at EXIM to modernize the agency's content policy in order to help innovative high-tech industries to compete against unfair practices by countries, including China." (Regulations.gov, Dec 14, 2020)
- One Defense - "We support efforts at EXIM to modernize the agency's content policy in order to help innovative high-tech industries to compete against unfair practices by countries, including China." (Regulations.gov, Dec 14, 2020)
- Jones Group International - "Good for EXIM to modernize its policies in order to counter competition from China. The specific inclusion of 5G equipment in the wireless communication category opens the door to leveling the playing field for the speedy replacement of Huawei equipment in our partners. This allows democratic countries to have secure networks focused on individual personal privacy versus government surveillance. In the near future, you will quickly be able to tell if you are in an autocratic or democratic nation by the characteristics of its 5G network." (Dec. 17, 2020)
- ClearPath - "Given the fledging supply chains for renewable energy technologies within the U.S., having a content policy that aligns with our manufacturing base is all the more important as we try to ensure growth in our domestic industries. The lower content level allows us more flexibility to partner with our allies and ensure that U.S. companies are still heavily involved." (Regulations.gov, Dec 14, 2020)
- Deutsche Bank - "Deutsche Bank would welcome changes t