Politico | Export credit talks collapse amid US-China frictions
- The US and other countries have expressed concern about China’s aggressive use of export credits to help Chinese companies land big international contracts
- In 2019, China provided more than three times the amount of official medium- and long-term export credits than the next closest provider, one report shows
This story is published in a content partnership with POLITICO. It was originally reported by Doug Palmer on politico.com on November 19, 2020.
Talks aimed at creating new rules to discipline the activities of government export credit agencies like the US Export-Import Bank and its counterparts in China, the European Union and Canada have broken down and may not resume for a year or longer, according to a joint statement from 11 of the 18 participating governments.
“After eight years of consultation, the positions of the members of the [International Working Group on Export Credits] remain significantly divergent,” the United States, Canada, the EU, Japan and seven others said in the statement.
“We‘re open to a high-level meeting in one year’s time to assess whether conditions are right for a resumption of negotiations or at an earlier date in the event that the necessary commitments have been made.”
China is a member of the IWG, but did not sign onto the statement. The United States and other countries have expressed concern about China‘s aggressive use of export credits to help Chinese companies land big international contracts.