Today, the House Financial Services Subcommittee on National Security, Illicit Finance, and International Financial Institutions, led by Chairman Blaine Luetkemeyer (MO-03), is holding a hearing entitled “The Role of the Export-Import (Ex-Im) Bank of the United States Amid Intensifying Economic Competition with China.”
In his opening remarks, Chairman Luetkemeyer stated: “From the outset of this 118th Congress, my top priority as Chairman of this Subcommittee on National Security, Illicit Finance, and International Financial Institutions has been addressing what I believe to be the biggest challenge to not only United States security but also global security. That threat is the bid for global economic domination posed by Communist China.”
He further emphasized: “Unlike the United States, the CCP does not subscribe to the rules-based order that has governed trade and export credit financing for nearly a century. The CCP demonstrates daily that it plays by its own rules and will do anything to gain footholds in strategic sectors vital to security. China’s highly aggressive actions in export credit financing blend beyond economic advancement and are clearly an effort to enhance its global power and economic might. It is critical that the United States compete and win in this arena against China.”
Chairman Luetkemeyer highlighted the importance of EXIM in this context: “One important tool for doing so is the topic of today’s hearing, the Export-Import Bank of the United States or EXIM. It has been five years since this Committee last held a hearing on EXIM, leading up to its most recent reauthorization in 2019, and it has been nine years since the sitting Chair of the Bank testified before us, in 2015. So, we are glad to welcome the current Chair and President of EXIM, Ms. Reta Jo Lewis to testify before us here today.”
He elaborated on EXIM's role: “EXIM was established during the Great Depression, and over the decades since, it has helped support exports of U.S. goods and services in cases where the private sector is unwilling or unable to provide financing. Through direct loans, loan guarantees, insurance, and an innovative reinsurance risk-sharing program, the Bank boosts American small businesses and creates or sustains tens of thousands of American jobs across the country.”
Addressing financial performance and policy direction issues at EXIM: “EXIM’s ability to manage risks successfully is why it is one of the rare government-run entities that actually makes a profit for American taxpayers and has sent approximately $9 billion back to the U.S. Treasury for debt reduction since 1992."
Luetkemeyer expressed concerns about organizational challenges at EXIM: "That is why my colleagues and I were concerned by a recent Inspector General report that cited significant challenges at EXIM surrounding organizational culture, employee morale and high attrition rates."
Concluding his remarks with expectations from Chair Lewis's testimony: "So Chair Lewis, I hope to hear from you today just what you and the rest of EXIM leadership are doing to address these alarming trends. I appreciate your willingness to come before this Committee to not only tell us about some of EXIM’s successes but also how you plan to continue making it better."