US Congress, eyeing China, votes to overhaul how US lends money for foreign development
Backers of the new BUILD act argue that US lending needs to be more efficient to keep up with China’s increasing investment throughout the world
The US Senate on Wednesday passed legislation overhauling the way the federal government lends money for foreign development, a measure developed largely in response to China’s growing influence.
The bill, which had already been approved by the House of Representatives, will now be sent to President Donald Trump, who is expected to sign it into law.
The Senate passed the Better Utilization of Investments Leading to Development Act (BUILD) as part of a bill authorising the Federal Aviation Administration, which passed by 93 to 6.
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The measure creates a new organisation, the US International Development Finance Corp, that consolidates the Overseas Private Investment Corporation (OPIC) and other government development organisations.
Those institutions lend money for projects in developing countries such as energy, ports and water infrastructure.
Backers of the bill argued that OPIC needed to be modernised and US lending in general made more efficient to keep up with China’s increasing investment throughout the world.
US officials have worried that countries have been at risk of giving up their sovereignty when they fund infrastructure projects with Chinese loans that they cannot pay back.