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.

The People's Republic of China (PRC)'s provocative use of military force in the Taiwan Strait has appeared to subside, but not before convincing many in the Congress that the PRC regime continues to flout international norms sensitive to the United States. In addition to challenging stability in the Taiwan Strait, the PRC is seen recently to undermine important U.S. interests regarding nuclear proliferation, intellectual property rights, and missile proliferation. As a result, many in the Congress are pressing for actions -- including economic and other sanctions