Washington, DC, June 28, 2005 - In a letter sent today to Congressman Jim Kolbe (R-AZ), Chair of the House Subcommittee on Foreign Operations, Export Financing and Related Programs, the Electronic Industries Alliance (EIA) urged House Members to oppose an amendment that would eliminate the use of Export-Import Bank financing for projects in China or linked to China.

The amendment, slated for possible consideration during debate on the Foreign Operations Appropriations bill (H.R. 3057) today, would bar the use of Export-Import Bank funds for the financing of projects with Chinese entities or nationals, or which would lead to re-export of products to Chinese entities or nationals. EIA views the amendment as an enforcement measure that could have a negative effect on U.S.-Chinese trade.

"While the US and China have a variety of disagreements and challenges to address across a range of areas, penalizing China through the elimination of Export-Import financing is not the proper way to address them," EIA President and CEO Dave McCurdy said in the letter to Rep. Kolbe. "Rather, these serious issues require discussion and negotiation through appropriate diplomatic and political channels. Adoption of this amendment would do more harm to American firms and jobs that depend on trade with China, rather than China itself."

EIA also believes that passing the Export-Import Bank financing amendment would send the wrong signal at a time when engagement with China is resulting in valuable reforms by that country. Moreover, "China is taking steps toward meeting its WTO commitments, including taking new measures to reduce piracy of intellectual property - a priority for many EIA members," McCurdy pointed out.

About EIA: The Electronic Industries Alliance (EIA) is the leading advocate in Washington, D.C., for the U.S. high-tech industry. The Alliance, which traces its origins to the Radio Manufacturers Association (chartered in 1924), is a partnership of electronic and high-tech associations and companies whose mission is to promote the market development and competitiveness of the $400 billion U.S. high-tech and electronics industries through domestic and international policy efforts. EIA's corporate members - nearly 1,300 - provide products and services ranging from microscopic electronic components to state-of-the-art defense, space and industry high-tech systems, as well as the full range of telecommunications and consumer electronics products. Headquartered in Arlington, Va., the Alliance is made up of the Electronic Components, Assemblies & Materials Association (ECA); the Government Electronics & Information Technology Association (GEIA); JEDEC; the Telecommunications Industry Association (TIA); and leading consumer electronics companies who participate in EIA's Environmental Issues Council. EIA is also heavily involved in cyber security issues through the Internet Security Alliance (ISAlliance), and education issues, through the National Science & Technology Education Partnership (NSTEP).