I 

112TH CONGRESS 

1ST SESSION H. R. 2271 

To prohibit the awarding of contracts by the Federal Government to Chinese 

entities until the People’s Republic of China signs the WTO Agreement 

on Government Procurement. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 22, 2011 

Mr. ROYCE (for himself and Mr. CONNOLLY of Virginia) introduced the following bill; which was referred to the Committee on Oversight and Government Reform 

A BILL 

To prohibit the awarding of contracts by the Federal Government to Chinese entities until the People’s Republic of 

China signs the WTO Agreement on Government Procurement. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. FINDINGS. 

4 Congress finds the following: 

5 (1) The Agreement on Government Procure6 ment (GPA) is a plurilateral agreement among 41 

7 members of the World Trade Organization (WTO) 


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1 that provides reciprocal market access for certain 

2 government procurement projects. 

3 (2) Members of the GPA submit schedules con4 taining lists of covered government entities, as well 

5 as goods and services that are open to bidding by 

6 firms of the other GPA members. 

7 (3) The People’s Republic of China became an 

8 official observer of the GPA committee in February 

9 2002, and formally applied for GPA membership in 

10 December 2007, when it submitted its first offer. 

11 (4) The United States, along with several other 

12 major GPA parties, deemed China’s accession bid 

13 unacceptable. 

14 (5) China submitted a follow-up bid to join the 

15 GPA on July 9, 2010, that was viewed as an im16 provement from its previous offer, but was ulti17 mately unacceptable to all GPA members, in part 

18 because the Chinese offer excluded purchases by 

19 local and provincial governments as well as state20 owned enterprises. 

21 (6) Chinese entities continue to be awarded 

22 United States Government contracts, despite not 

23 being a party to the GPA. 


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1 (7) Concerns remain over China’s alleged dis2 criminatory procurement practices and policies 

3 against foreign firms. 

4 (8) China estimated its public procurement 

5 market at $110,000,000,000 in 2009. 

6 (9) The United States Department of Com7 merce estimated the Chinese public procurement 

8 market could be as high as $200,000,000,000 or 

9 more in its report entitled ‘‘Doing Business in 

10 China, 2011 Country Commercial Guide for United 

11 States Companies’’. 

12 (10) The European Chamber of Commerce’s re13 port, ‘‘Public Procurement in China: European 

14 Business Experiences Competing for Public Con15 tracts in China’’ found that ‘‘China’s overall public 

16 procurement market could be worth over 7 trillion 

17 RMB. FIEs (Foreign Invested Enterprise) com18 peting for this market face numerous significant 

19 non-market challenges’’. 

20 (11) Congress urges the Chinese Government to 

21 end these discriminatory practices against United 

22 States businesses. 

23 SEC. 2. PROHIBITION ON GOVERNMENT CONTRACTS. 

24 (a) PROHIBITION.—No department or agency of the 

25 United States may enter into any contract with any ChiVerDate Mar 15 2010 03:50 Jun 25, 2011 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2271.IH H2271

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1 nese entity for the procurement of goods or services until 

2 the Peoples Republic of China becomes a signatory to the 

3 Agreement on Government Procurement. 

4 (b) DEFINITIONS.—In this section: 

5 (1) AGREEMENT ON GOVERNMENT PROCURE6 MENT.—The term ‘‘Agreement on Government Pro7 curement’’ means the Agreement on Government 

8 Procurement referred to in section 101(d)(17) of the 

9 Uruguay Round Agreements Act (19 U.S.C. 

10 3511(d)(17). 

11 (2) CHINESE ENTITY.—The term ‘‘Chinese en12 tity’’ means any entity— 

13 (A) which is located in the People’s Repub14 lic of China; and 

15 (B) the majority of the equity or other 

16 ownership interests of which are owned or con17 trolled by the Government of the People’s Re18 public of China or by Chinese nationals. 

19 SEC. 3. EFFECTIVE DATE. 

20 Section 2 applies to contracts entered into on or after 

21 the date of the enactment of this Act. 

Æ 


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