PRC Is Not a Developing Country Act

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 1107) to direct the Secretary of State to take certain actions with respect to the labeling of the People's Republic of China as a developing country, and for other purposes, as amended.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days to revise and extend their remarks and to include extraneous material on this measure.

Mr. Speaker, I yield such time as she may consume to the gentlewoman from California (Mrs. Kim), who chairs the Foreign Affairs Subcommittee on Indo-Pacific and is the author of this important legislation.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, the United States and other developed nations of the world need to stop underwriting the belligerent expansion of the Chinese Communist Party's influence around the world.

Since 1978, the economy of the People's Republic of China has reportedly grown 9 percent a year on average. Today, the PRC is the world's second-largest economy and is a top goods exporter. Look at our balance of trade. Its outward direct investment exceeds that of 32 of the 36 OECD countries, and China's defense expenditures and number of satellites in space are second in the world, only behind the United States.

That is why it is ridiculous that the PRC is still considered a developing country by international financial institutions, or IFIs, and in various treaty provisions intended to benefit genuinely poor nations. That designation allows the PRC to pay less in United Nations dues and assessments; it allows them to avoid stricter requirements in certain environmental agreements; and it allows the PRC to get preferential loans from international financial institutions, which the PRC then uses to offer predatory and unfair loans to actual developing countries, countries such as Sri Lanka, Djibouti, and Uganda, which have been placed into debt bondage by the PRC, often accompanied by bribery and corruption of local officials.

This is just one way the PRC distorts the global economy through unfair trade and lending practices while hurting countries that are actually still genuinely developing.

Mr. Speaker, I thank my good friend from California, Young Kim, who chairs the Foreign Affairs Subcommittee on the Indo-Pacific, for introducing this bill. It is smart, targeted legislation. I thank Gerry Connolly for his chief cosponsorship, as well.

This legislation clearly states that the PRC is no longer a developing country and that the United States should seek to ensure that any future treaties, conventions, or organizations we are a part of do not treat the PRC as one.

The world must stop allowing the PRC to siphon benefits from other nations by taking advantage of an outdated and inaccurate developing country status.

Mr. Speaker, I urge support for the legislation, and I reserve the balance of my time.

House of Representatives,

Committee on Foreign Affairs,

Washington, DC, March 23, 2023.

Hon. Jason Smith,

Chairman, Committee on Ways and Means,

Washington, DC.

Dear Chairman Smith: Thank you for agreeing to forgo

pursuing a sequential referral of H.R. 1107, the ``PRC is Not

a Developing Country Act,'' so that the measure may proceed

expeditiously to the House floor. As requested, the Committee

on Ways and Means has been added as a recipient of the report

required by this bill.

I agree that your forgoing action on this measure does not

in any way diminish or alter the jurisdiction of your

committee, or prejudice its jurisdictional prerogatives on

this measure or similar legislation in the future.

I will seek to place our letters on this bill into the

Congressional Record during floor consideration. I appreciate

your cooperation regarding this legislation and look forward

to continuing to work together as this measure moves through

the legislative process.

Sincerely,

Michael T. McCaul,

Chairman.

Mr. Speaker, I urge unanimous support by this body for this important legislation, and I yield back the balance of my time.

Mr. Speaker, on that I demand the yeas and nays.

Mr. Speaker, I yield myself such time as I may consume, and I rise in support of H.R. 1107.

Mr. Speaker, the People's Republic of China, PRC, is the biggest emitter of greenhouse gases in the entire world. Yet, for too long, it has shirked its responsibility to do more to combat climate change on the world stage. The PRC does this by seeking and securing the status of a ``developing country'' in international treaties and organizations, despite being the world's second-largest economy.

This kind of special treatment needs to stop. China needs to pay its fair share to fight global challenges.

That is why I stand here today to support the bipartisan measure by my colleagues Representative Young Kim and Representative Gerry Connolly.

H.R. 1107 calls on the State Department to work diplomatically within all relevant international organizations and treaties where China is treated as a developing nation to change its status. It is time that the PRC should be ascribed the responsibilities commensurate with its global impact and power.

The bill also ensures that U.S. diplomats will work to create mechanisms to consider such a change if they do not already exist. Most importantly, it will authorize our diplomats to work to ensure that the PRC is not getting special treatment regardless of the status it has.

Right now, China gets to have its cake and eat it, too. It is bolstering its influence and presence in international organizations and treaties, all the while avoiding having to contribute its appropriate share to solving global problems.

The PRC claims it is a responsible global power. This bill aims to hold it accountable by asking it to accept greater burden-sharing for global problems. This is an important measure.

Mr. Speaker, I encourage my colleagues to support this bill, and I reserve the balance of my time.

Mr. Speaker, I yield myself the balance of my time.

Mr. Speaker, H.R. 1107 is an important bipartisan measure that calls out the People's Republic of China for failing to do its part in international organizations and treaties and calls on it to do more.

At the same time, the diplomatic actions that this measure calls for highlight just how critical it is that the United States remain engaged and present in international and multilateral forums and treaties.

We can only shape global decisions for the benefit of U.S. interests and can only counter the PRC if we are in the room. We have to negotiate and engage in diplomacy to advance our interests. Otherwise, as we have seen repeatedly, when the United States is absent or silent, China immediately swoops in to drive the international policy conversation and agenda in the direction it wants.

I support this bipartisan measure because it deepens both U.S. engagement

in international treaties and organizations while trying to effectively counter the PRC's own self-interested actions in these forums.

Mr. Speaker, I hope my colleagues will join me and support this important bill, and I yield back the balance of my time.

Mr. Speaker, I thank Congressman Chris Smith for yielding me the time.

I rise in strong support of H.R. 1107, the PRC Is Not a Developing Country Act. This is a bipartisan bill I introduced with my colleague Gerry Connolly to address the People's Republic of China's exploitation of its status as a developing country in treaties and in international organizations.

The People's Republic of China is the world's second largest economy, accounting for 18.6 percent of the global economy. Their economy size is second only to the United States. The United States is treated as a developed country, and so should the PRC. The United States is also treated as a high-income country in treaties and international organizations, so China should also be treated as a developed country.

However, the PRC is still classified as a developing country, and they are using this status to game the system and hurt countries that are truly in need.

The PRC exploits their developing country status by applying for development assistance and loans from international organizations, despite spending trillions on infrastructure projects in developing countries as part of the debt trap diplomacy scheme known as the Belt and Road Initiative. In fact,

PRC's withdrawal of loans takes away from actual developing countries and helps the PRC finance its Belt and Road program.

We are long overdue to level the playing field. This legislation rights this wrong by requiring the Secretary of State to oppose the labeling or treatment of the PRC as a developing country in any international organization or treaty to which the United States is a party.

It also directs the Secretary to seek mechanisms in international organizations to change the status of the PRC from a developing to developed country.

We cannot let the PRC continue exploiting countries in need and take unfair advantage of international treaties and organizations. It is time that we give developing countries a better chance at participating in programs that are meant for them and not meant for the world's second-largest economy.

Mr. Speaker, I urge all of my colleagues to vote ``yes.''

Mr. Speaker, I was quarantining after testing positive for COVID-19 and was unable to vote on March 27-29, 2023. Had I been present, I would have voted Nay on the following:

H. Res. 260--Roll Call No. 165;

H. Res. 260--Roll Call No. 166;

Boebert of Colorado Part B Amendment No. 2--Roll Call No. 167;

Hern of Oklahoma Part B Amendment No. 5--Roll Call No. 168;

Jackson of Texas Part B Amendment No. 7--Roll Call No. 169;

Molinaro of New York Part B Amendment No. 9--Roll Call No. 170;

Palmer of Alabama Part B Amendment No. 10--Roll Call No. 171;

Perry of Pennsylvania Part B Amendment No. 11--Roll Call No. 172; and

Perry of Pennsylvania Part B Amendment No. 12--Roll Call No. 173.

I would have voted Yea on the following bills:

H.R. 1154--Roll Call No. 163; and

H.R. 1107--Roll Call No. 164.

Mr. Speaker, I was quarantining after testing positive for COVID-19 and was unable to vote on March 27-29, 2023. Had I been present, I would have voted Nay on the following bills:

Roll Call No. 165--H. RES. 260;

Roll Call No. 166--H. RES. 260;

Roll Call 167--Boebert of Colorado Part B Amendment No. 2;

Roll Call 168--Hern of Oklahoma Part B Amendment No. 5;

Roll Call No. 169--Jackson of Texas Part B Amendment No. 7;

Roll Call No. 170--Molinaro of New York Part B Amendment No. 9;

Roll Call No. 171--Palmer of Alabama Part B Amendment No. 10;

Roll Call No. 172--Perry of Pennsylvania Part B Amendment No. 11; and

Roll Call No. 173--Perry of Pennsylvania Part B Amendment No. 12.

I would have voted Yea on the following bills:

Roll Call No. 163--H.R. 1154; and

Roll Call No. 164--H.R. 1107.