U.S. Congressman Anthony Gonzalez (R – Rocky River) along with Rep. French Hill (R-AR), Rep. Andy Barr (R-KY), and Rep. Denver Riggleman (R-VA) sent a letter to President Donald Trump on Friday requesting the president rally support at the upcoming G7 Summit to counteract China’s efforts to abuse the international financial system and hold the Chinese Communist Party accountable.
“As we navigate the devastation caused by the COVID-19 crisis, two things have become abundantly clear. First, China’s complete disregard for the international community has exerted an incalculable cost on our nation and the world. Secondly, holding China accountable and forcing them to play by the rules that they have agreed to is something we cannot do alone,” reads the letter.
“The Chinese Communist Party has egregiously abused international organizations and agreements over the past several years as they seek to expand their influence across the globe,” said Congressman Gonzalez. “It is essential that the United States work with our G7 allies to ensure that international financial institutions stand up against this misconduct and protect member countries and the global economy.”
The letter, signed by 18 members of Congress, asks the President to work in conjunction with U.S. allies at the G7 Summit to ensure that international financial institutions require China to be transparent with their terms of credit as the world’s largest provider of development finance. In recent years, China has used its Belt and Road Initiative, as well as the establishment of the Asian Infrastructure Bank, to become a leader in providing capital to low- and middle-income countries as a way of pedaling influence across the globe. The hazy terms surrounding these loans put emerging market and low-income countries at risk of falling into a debt trap that leads to unsustainable payment obligations to China, a situation that will only be made worse as emerging market countries seek additional liquidity as a result of the COVID-19 pandemic. Enforcement of transparency on these loans on the part of the International Monetary Fund and the World Bank is critical to ensuring the security of these nations against undue influence from the Chinese Communist Party.