Tags: Joe Biden | exim | biden | china | lending

Departing EXIM Chief Urges Biden to Counter Chinese Lending Dominance

kimberly reed testifies at confirmation hearing
Kimberly A. Reed testifies during a confirmation hearing before the Senate Committee on Banking, Housing, and Urban Affairs July 19, 2018 on Capitol Hill in Washington, D.C. (Alex Wong/Getty Images)

Tuesday, 19 January 2021 07:37 AM

The head of the Export-Import Bank of the United States (EXIM) on Monday urged the Biden administration to keep pushing to neutralize Chinese export subsidies and help U.S. companies compete, building on gains made under Donald Trump.

Chairman Kimberly Reed, a political appointee who will leave her job on Wednesday after 20 months in office, told Reuters she was confident that restoration of the bank’s full lending powers had strengthened the competitiveness of U.S. companies and helped level the playing field, but more work was needed.

Republicans in Congress tried to shutter the institution in 2015, arguing that it was “corporate welfare” for big exporters such as Boeing, General Electric, and Caterpillar.

They kept EXIM from financing major projects such as power plants and commercial aircraft for four years by blocking board nominations until Trump reversed his previous opposition to the Bank and supported it, working with Democrats in Congress.

At the end of 2019, EXIM had secured a seven-year reauthorization, the longest in its 87-year history, as part of a spending bill that won strong bipartisan support.

Key sectors targeted for this financing include artificial intelligence, biotechnology, wireless communications equipment, including 5G, quantum computing, water treatment, and renewable energy, as well as emerging financial technologies, she said.

In the fiscal year ended Sept. 30, EXIM authorized a total of $5.4 billion to support more than $10.8 billion of U.S. exports and some 37,000 U.S. jobs, according to the bank’s annual report, which is to be released Tuesday.

EXIM’s approval in 2019 of one of the biggest deals in its history — $4.7 billion in assistance for a liquefied natural gas project in Mozambique — had also displaced China and Russia, which had been poised to finance the deal, Reed said.

EXIM also focused on boosting exports of U.S. goods and services to sub-Saharan Africa, particularly in the information and communications technology, health care, and agriculture sectors, the EXIM report said.

Big projects included $91.5 million in loan guarantees to support the export of design engineering and construction services to Senegal, a deal that will help bring electricity to some 330,000 people in more than 400 villages, Reed said.

© 2021 Thomson/Reuters. All rights reserved.


   
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The head of the Export-Import Bank of the United States (EXIM) on Monday urged the Biden administration to keep pushing to neutralize Chinese export subsidies and help U.S. companies compete, building on gains...
exim, biden, china, lending
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2021-37-19
Tuesday, 19 January 2021 07:37 AM
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