The "Strengthening Exports Against China Act" amends the Export-Import Bank Act of 1945 to adjust the calculation of the Bank's default rate. This rate is significant as it dictates when the Bank's overall lending cap is triggered, potentially limiting its capacity to provide crucial export financing. The legislation introduces an exclusion for specific types of financing from this default rate calculation. This includes financing that helps U.S. businesses compete against or replace products and services from entities on U.S. government restricted lists, such as the Entity List or the Specially Designated Nationals and Blocked Persons list . Furthermore, financing provided through the Program on China and Transformational Exports is also exempted, aiming to ensure the Export-Import Bank can continue supporting strategic U.S. exports without these particular defaults impacting its lending limits.