Strengthening Exports Against China Act

The Strengthening Exports Against China Act would modify how the Export-Import Bank (EXIM) operates to help American businesses compete with Chinese companies. Currently, EXIM has a two percent default rate cap that automatically freezes all lending if reached, which limits the bank's ability to support companies in emerging and riskier industries. This bill would exclude certain export financing deals from that default rate calculation, particularly those involving the China and Transformational Exports Program (CTEP) and exports competing with Chinese firms in areas like artificial intelligence, semiconductors, and critical mineral processing.

The practical effect would be to give EXIM more flexibility to provide loans and insurance to U.S. exporters in these high-tech sectors without triggering the lending freeze. Supporters argue this would level the playing field since Chinese companies receive substantial government subsidies and financing. The bill is currently referred to the House Committee on Financial Services and has bipartisan support, though it has not yet been voted on by the full House.