Sen. Martha McSally, R-Ariz., introduced a resolution Thursday calling
on China to repay U.S. bondholders more than $1.6 trillion of sovereign
debt, including interest, that pre-dates the country's Communist
government.To get more
China news, you can visit shine news official website.
The measure is co-sponsored by Sen. Marsha Blackburn, R-Tenn., and a
House measure led by Rep. Mark Green, R-Tenn., is forthcoming.
Resolutions lack the force of law held by a bill, though they reflect
the will of lawmakers.
“China has repeatedly failed to honor its obligations to America, taking
American families’ money and jobs,” McSally said. “Well, the abuse ends
here. We are holding China accountable for their debt and for
unleashing the coronavirus on the world. We demand China pay back the
$1.6 trillion it owes to American families.”
The bonds, which are backed by gold, were issued by the Republic of
China as long ago as 1912. The government’s leaders fled to Taiwan
following the end of Chairman Mao Zedong’s revolution in 1949. Beijing
maintains Taiwan is part of China, and under international law,
successor governments are responsible for the debts of their
predecessors.
British Prime Minister Margaret Thatcher in 1987 ordered Beijing to pay
Brits for their holdings or lose access to British capital markets,
enticing then-Chinese President Li Xiannian’s government to reach a
settlement of 23.5 million British pounds.
By paying some bondholders and not others, Beijing is technically in
selective default, according to the ratings of bond-risk firms Moody’s,
Standard & Poors and Fitch, and cannot access the international debt
market until it pays the remaining holders.“We are thrilled,” said
American Bondholder Foundation President Jonna Bianco, who has power of
attorney for 95% of the thousands of U.S. bondholders. “We are pleased
that our Senate leadership -- and we've got one coming out of the House
as well -- are expressing their support in holding China accountable,
consistent with America's message to the president: Hold China
accountable.”
Trump and Republican lawmakers on Capitol Hill have been looking for
ways to punish Beijing for the Communist Party's handling of the
COVID-19 outbreak, which they blame for a global pandemic.The virus,
which originated in Wuhan, China, has infected more than 5.2 million
Americans and killed 166,600. Stay-at-home orders aimed at slowing the
virus' spread inflicted trillions of dollars of economic damage and
resulted in the U.S and global economy spiraling into the sharpest
slowdown of the post-World War II era.
"This is not the first time China’s actions have had an outsized impact
on the American people," Blackburn said. "What 2020 has made clear is
that the status quo is not working when it comes to our relationship
with China.”
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