Strengthening Exports Against China Act
Key claim: The Strengthening Exports Against China Act would let the Export-Import Bank exclude China and Transformational Exports Program financing and financing that competes with Entity List or OFAC-sanctioned foreign suppliers from its default-rate cap calculations.
Abstract
(HR1615 · 119th Congress) Strengthening Exports Against China Act This bill allows the Export-Import Bank of the United States (EXIM) to exclude financing provided to certain U.S. exporters from its default rate cap calculations. EXIM, the official export credit agency of the United States, provides financing for U.S. exports of goods and services. EXIM monitors credit and other transaction risks, reserves against losses, and submits quarterly reports to Congress on its default rate. If its default rate reaches 2%, EXIM faces an immediate lending cap freeze. This bill exempts certain transactions from EXIM’s default rate calculation, thereby allowing EXIM to provide financing to these U.S. exporters without the risk of reaching the default rate cap. Specifically, the bill allows EXIM to exclude from the default rate cap any financing provided to U.S. exporters under the China and Transformational Exports Program. (This program allows EXIM to extend loans, guarantees, and insurance to advance the comparative leadership of the United States with respect to China in specified export areas, such as artificial intelligence, biotechnology, and wireless communications equipment.) Additionally, the bill allows EXIM to exclude from the default rate cap any financing provided to U.S. exporters that are competing with products or services provided by (1) a foreign entity included on the Entity List maintained by the Department of Commerce’s Bureau of Industry and Security (e.g., entities involved in activities contrary to U.S. national security or foreign policy interests), or (2) a foreign individual or entity sanctioned by the Department of the Treasury’s Office of Foreign Assets Control. Latest action (2025-02-26): Referred to the House Committee on Financial Services.
Why this matters
EXIM’s 2% statutory default-rate cap has historically constrained the Bank’s willingness to underwrite higher-risk transactions, including many China-competition and Transformational Exports Program deals. By excluding those categories — plus financing that competes head-to-head with Entity List or OFAC-sanctioned foreign suppliers — from the cap calculation, the bill would materially expand EXIM’s financing flexibility for U.S. exporters facing subsidized adversary competition, without formally lifting the cap. The effect on importers, exporters, and consumer prices depends on how aggressively EXIM uses the newly freed capacity.