The Export-Import Bank of the United States recently announced the launch of a new initiative called “Strengthening American Competitiveness“ aimed at supporting the government’s Program on China and Transformational Exports (“China Program”) that targets Chinese export subsidies around the world.
China Program Targets
The China Program was established by the Senate Bill signed into law last December reauthorizing the agency for another seven years. The program directs the EXIM to commit 20% of its financing authority (roughly $27 billion) towards supporting U.S. businesses that compete directly with certain advanced technology exports from China. Specifically, the program aims to boost exports of U.S. goods and services that lawmakers and the administration have deemed “transformational.”
Financing under the China Program aims to “neutralize export subsidies for competing goods and services” provided by China, with a focus on artificial intelligence, biotechnology, emerging financial technologies, quantum computing, renewable energy, semiconductor technology, and 5G.
U.S. Lagging in Export Financing “Arms Race”
In the last full year that EXIM had complete lending powers, fiscal 2014, the agency provided $20.5 billion in financing support for $27.5 billion worth of U.S. exports.
By contrast, China’s Export-Import Bank — one of three export credit agencies in that country — alone supplied more than $149 billion in loans to more than 1,800 Belt and Road Initiative projects in the last several years.
According to Ex-Im figures, in 2018, China’s export credit agencies provided almost the same amount of medium and long-term financing as those of the United States, the UK, France, Japan, Canada, Italy, and Germany combined.
Over the next several months, EXIM will be delivering a series of teleconferences on this initiative, focusing on how the agency can support American-made exports. Click here for dates and registration information. Note: Recordings of past conferences will be available for download.
Other EXIM Programs & Relief Efforts
EXIM has also stepped up its programs to help companies currently facing shipment problems, payment difficulties, liquidity problems, or other business interruptions. You can find out more about the agency's various COVID-19 relief efforts here.