Congressional interest in the leadership change and economic transformation underway in China has grown substantially over the past few years. Leading congressional concerns focus on how economic conditions in China pose opportunities for U.S. enterprise and how the evolution of conditions in China fosters U.S. security, economic, and political interests. Congressional concern with China grew in 1995 and 1996 as a result of reports of the serious decline in the health of senior Chinese leader Deng Xiaoping. Present conditions in China include; A vibrant but sometimes overheated economy, A less divided central political leadership.
Lending to China from the multilateral development banks (MDBs) increased four-fold between 1985 and 1994, from $1.1 billion to $4.3 billion. China is now the MDBs' largest single borrower country. There is considerable debate today, however, whether the MDBs should continue lending to China. In particular, there is sharp debate whether the World Bank should continue making concessional loans to China.
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