South Iowa News

Representative Zach Nunn of Iowa's 3rd District has introduced the Neutralizing Unfair Chinese Subsidies Act, aiming to bolster American competitiveness and address China's alleged violations of global trade standards. As Vice Chair of the House Financial Services Subcommittee on National Security, Rep. Nunn is focusing on what he describes as China's unfair market practices.

China reportedly disburses an average of $33.5 billion annually in official export credit, with a notable increase to over $500 billion in 2018. This funding often targets developing countries and is linked to growing debt and infrastructure challenges.

"Whether it’s an Iowa manufacturer building precision agriculture equipment or a Main Street business selling technology products around the world, we’re competing in a rigged system," said Rep. Nunn. "China is flooding markets with unfair subsidies, which undercut American companies and saddle developing countries with unsustainable debt. This bill is about holding China accountable and leveling the playing field."

Rep. Nunn criticizes China for bypassing transparency and fair competition standards set by the Organization for Economic Co-operation and Development (OECD), which are followed by the United States and its allies. He claims that China uses opaque financing methods to distort global markets, disadvantaging American exports while increasing influence through its Belt and Road Initiative.

The Belt and Road Initiative has led to various infrastructure projects worldwide but has been criticized for construction issues, cost overruns, and debt dependency on Beijing. In contrast, Rep. Nunn highlights the United States' responsible approach via the Export-Import Bank's $610 billion in financing over many years.

The Neutralizing Unfair Chinese Subsidies Act aims to address these concerns directly.