US Senator Warns of Corruption Amid Opening of Chinese Loan Market

US Senator Warns of Corruption Amid Opening of Chinese Loan Market
U.S. Senator Marco Rubio (R-FL) talks to reporters following a classified national security briefing of the U.S. Senate on developments with Iran after attacks by Iran on U.S. forces in Iraq, at the U.S. Capitol in Washington, D.C., on Jan. 8, 2020. Tom Brenner/Reuters
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NEW YORK—U.S. Senator Marco Rubio has asked regulators to be vigilant about keeping American investors safe from “hazards” connected with a provision in the latest U.S.-China trade deal that encourages investment in China’s non-performing loan market.

The “Phase One” deal announced in January includes an agreement that allows U.S. financial firms to apply for licenses to acquire non-performing loans directly from Chinese banks.