South OC Times

U.S. Representatives Young Kim and Joyce Beatty have introduced the Strengthening Exports Against China Act (SEACA), a bipartisan bill aimed at enhancing U.S. competitiveness in emerging technologies and countering Chinese Communist Party (CCP) export subsidies. The legislation seeks to address challenges faced by the China and Transformational Exports Program (CTEP) at the Export-Import Bank, which is hindered by a two percent default cap rate.

The proposed act intends to exempt CTEP export financing deals from this default rate cap, specifically for projects directly competing with the CCP. Additionally, it will exclude U.S. exports that compete with goods and services on the Department of Commerce’s Export Control Entity List or those provided by entities sanctioned by the Department of Treasury, including Huawei and ZTE.

"We must ensure our policies work to support U.S. innovation and counter the Chinese Communist Party’s coercive economic tactics," stated Representative Kim. "The Strengthening Exports Against China Act bolsters American leadership in emerging technologies and increases our competitiveness against the CCP."

Representative Beatty emphasized the need for improvements as they prepare for reauthorization later in Congress: "I am proud to join Congresswoman Kim in leading this bill to strengthen the U.S. Export-Import Bank and give it greater flexibility to help U.S. exporters compete with China."

Senators Mike Rounds and Catherine Cortez Masto have introduced companion legislation in the Senate. Senator Rounds highlighted the necessity of fair competition: "We must level the playing field for U.S. exporters when they’re up against firms backed by the Chinese Communist Party’s opaque financing."

Senator Cortez Masto pointed out that "the Chinese Communist Party provides massive subsidies and financing for businesses in emerging industries." She stressed that more support is needed for American businesses to remain competitive, particularly in areas like AI and critical mineral mining.