ICYMI: Two McCormick Bills Advanced by Foreign Relations Committee

Washington, D.C., October 24, 2025 - This week, the Senate Foreign Relations Committee approved two bills sponsored by Senator Dave McCormick (R-PA), which leverage American leadership at international monetary institutions to push back against China's growing global economic influence.

The Strengthening United States Leadership at the Inter-American Development Bank Actwould bolster key economic partners in the Western Hemisphere, provide more alternatives to Chinese investment, and create additional development opportunities for U.S. companies that will create jobs in the United States. The China Exchange Rate Transparency (CERT) Actworks to advocate for enhanced transparency in China's exchange rate arrangements at the International Monetary Fund (IMF). Both bills passed with bipartisan support.

"China's trade cheating, currency manipulation, intellectual property theft, and other nefarious behaviors present a growing economic and military threat to the United States and our allies. These measures take important steps to help American companies create jobs, provide alternatives to Chinese investment, and create greater transparency and stricter oversight of China's economic commitments," said Senator McCormick. "I'm proud to continue working with my colleagues on both sides of the aisle to advance these priorities that are critical to our nation's economic future and national security."

Background on the Strengthening United States Leadership at the Inter-American Development Bank Act:

The United States is the largest shareholder at the Inter-American Development Bank (IDB), which was founded in 1959 to finance development in the Americas. In 2023, the IDB financed a total of $24.3 billion across its public and private sector components, supporting projects across the Western Hemisphere.

The People's Republic of China (PRC) is a member of the IDB and has nearly 5% voting power in IDB Invest, the IDB's private sector arm, compared to 15% for the United States. Recently, PRC companies have won several large procurement contracts for IDB projects, including a $4 billion contract to build the Bogotá metro system in Colombia.

Over the last 15 years, U.S. firms have only averaged around 1% of IDB's public-sector procurement, compared to 3% for PRC companies. This is despite the fact that the PRC only owns 0.004% of shares in the public sector side of the IDB. U.S. companies are less likely to compete for IDB procurement opportunities, and the U.S. should encourage the IDB to continue leveling the playing field by prioritizing value for money, transparency, and integrity over lowest upfront cost.

This bill would instruct the U.S. Executive Director at the Inter-American Development Bank to use the voice, vote, and influence of the United States to reduce the influence of the PRC and PRC entities in IDB operations, activities, and projects and oppose any action at the IDB that could increase the voting share of the PRC relative to the United States.

Background on the China Exchange Rate Transparency (CERT) Act:

Under Article IV of the Articles of Agreement of the International Monetary Fund (the Fund), the People's Republic of China (PRC) has committed to orderly exchange rate arrangements, the avoidance of exchange rate manipulation, and cooperation with the Fund to ensure ''firm surveillance'' of PRC exchange rate policies. However, according to the Department of the Treasury's recent report on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States, "China stands out among our major trading partners in its lack of transparency around its exchange rate policies and practices." According to the report, this activity "raises serious concerns about China's commitment to transparency at a time where China's rising external imbalances are creating significant spillovers to the rest of the world."

This bill would direct the U.S. Executive Director at the IMF to advocate for enhanced transparency in China's exchange rate arrangements. The bill also calls for stricter IMF oversight of China's compliance with its commitments under the IMF's Articles of Agreement, including orderly exchange rate arrangements and the avoidance of manipulation.

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