Barrasso bill would end lending to China from development banks

CHEYENNE (WNE) — U.S. Sen. John Barrasso, R-Wyo., recently led 13 senators in introducing legislation to end lending to the Chinese Communist Party from multilateral development banks, including the World Bank and Asian Development Bank.

The World Bank and the Asian Development Bank were created to promote economic growth in developing countries and eliminate extreme poverty. Despite having access to capital and being the second-largest economy in the world, China is still receiving loans and assistance from both banks, a news release from Barrasso’s office said.

“China is the world’s second-largest economy, yet it continues to profit off World Bank and Asian Development Bank loans largely funded by American taxpayers,” Barrasso said in the release. “While China obtains subsidized loans, it is engaging in predatory lending to developing countries across the world. As the largest contributor to these banks, the United States has a duty to make sure our money and resources are going to countries that need it most, not China. It’s time to stop sending Americans’ hard-earned tax dollars to the Chinese Communist Party. This legislation will put an end to lending to China and help refocus the development mission of the multilateral development banks.”

Sen. Cynthia Lummis, R-Wyo., is among the cosponsors of the legislation.

If passed into law, the bill would require the Secretary of Treasury to instruct the U.S. executive director at each of the multilateral banks to oppose any loan, extension or technical assistance by the bank to China and to end lending to countries that exceed the criteria for graduating from lending.

This story was published on July 25, 2025.