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At a time when many legislators pretend we must fight against China threat of dominance, here you have an agency whose job is to extend cheap financing to the national Chinese Airline in the name of promoting America number one exporter: Boeing.Never mind that Air China like other Ex Im Bank beneficiaries goes on to compete with American airlines, whose borrowing cost isn subsidized by Uncle Sam.Never mind also that during the last four years, when the bank had too few directors on its board and couldn serve large companies, these beneficiaries (including Boeing) still did remarkably well.In fact, without Ex Im Bank distorting financial markets, we saw much innovation in commercial aircraft and aerospace financing. The last four years also debunked the notion that Ex Im Bank sustains growth or grows exports.Both were doing great while Ex Im Bank operated in a diminished capacity.Some justify Ex Im Bank existence by arguing that it could be used to offset China growing influence as an investor and lender around the globe. I don think that a useful goal to pursue, but it worth addressing.Since the new bill doesn really reform the agency in any meaningful way, most of the bank lending activities will continue to take place in higher income nations, for the benefit of large companies with plenty of access to capital.Meanwhile, China invests mostly in lower income nations.

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