U.S. SENATE – U.S. Senators Martha McSally (R-AZ) and Marsha Blackburn (R-TN) today introduced a concurrent resolution calling for the People’s Republic of China (PRC) to make good on a sovereign debt of $1.6 trillion owed to 20,000 American families.
Between 1900 and 1940, the Republic of China issued millions of dollars in sovereign debt around the world, including in the United States. They defaulted on this debt in 1938, and in 1949, the Communist Party, led by Mao Zedong, took over China, forming the PRC. Under international law, the PRC as a successor government of Republic of China is responsible for repaying its debts.
However, China reneged on its financial obligations, and as a result, 20,000 families in over 46 states were never repaid. In 1987, British Prime Minister Margaret Thatcher successfully demanded China repay the bonds. This resolution calls on President Trump to do everything in his power to achieve resolution and repayment of the defaulted sovereign debt, currently valued at $1.6 trillion according the American Bondholders Foundation, of the PRC for 20,000 families in the United States.
“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.”
“Senator McSally and I introduced the Civil Justice for Victims of COVID Act to give Americans a pathway to sue the Chinese government for its role in the spread of the coronavirus,” Blackburn said. “However, this is not the first time China’s actions have had an outsized impact on the American people. Twenty thousand American families are still owed a collective $1.6 trillion from a debt on which China defaulted in the early 20th Century. What 2020 has made clear is that the status quo is not working when it comes to our relationship with China.”
The resolution can be found here.
Senator McSally is committed to holding China accountable.