I 

111TH CONGRESS 

2D SESSION H. R. 5312 

To limit the total value of Chinese goods that may be procured by the 

United States Government during a calendar year to not more than 

the total value of United States goods procured by the Chinese Government if any during the preceding calendar year, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 13, 2010 

Mr. SCHAUER (for himself, Mr. MICHAUD, Mr. RYAN of Ohio, Ms. KAPTUR, 

Mr. KILDEE, Mr. JONES, Mr. HARE, Ms. SUTTON, and Ms. SHEA-PORTER) introduced the following bill; which was referred to the Committee 

on Oversight and Government Reform, and in addition to the Committees 

on Ways and Means and Transportation and Infrastructure, for a period 

to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee 

concerned 

A BILL 

To limit the total value of Chinese goods that may be procured by the United States Government during a calendar year to not more than the total value of United 

States goods procured by the Chinese Government if 

any during the preceding calendar year, and for other 

purposes. 

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


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Reciprocal Government 

3 Procurement with China Creates American Jobs Act’’. 

4 SEC. 2. FINDINGS AND STATEMENT OF POLICY. 

5 (a) FINDINGS.—Congress finds the following: 

6 (1) The purchase of government goods and 

7 services is an important means through which the 

8 government fulfills its constitutional duties to pro9 vide for the common defense and promote the gen10 eral welfare of the United States. 

11 (2) American taxpayers expect that government 

12 procurement serves the interests of all Americans. 

13 (3) The United States and several of its trading 

14 partners are signatories to the WTO Agreement on 

15 Government Procurement, which holds that signato16 ries agree to certain restraints with regard to gov17 ernment procurement. 

18 (4) However, the People’s Republic of China is 

19 not a signatory to the Agreement on Government 

20 Procurement, and that, accordingly, it is not a viola21 tion of that agreement for the Congress to establish 

22 procurement policies as best suit the American pub23 lic interest with regard to Chinese goods. 

24 (5) China has structured its government pro25 curement law to favor its domestic goods, as noted 

26 in article 10 of such law. 


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1 (6) China has also recently announced a plan to 

2 favor so-called ‘‘indigenous innovation’’ under which 

3 the Chinese Government would expressly favor lo4 cally developed products and technologies. 

5 (7) American companies have had little or no 

6 success in accessing Chinese Government procure7 ment contracts, while Chinese companies have had 

8 great success in selling goods for United States Gov9 ernment projects. 

10 (b) STATEMENT OF POLICY.—Accordingly, it shall be 

11 the policy of the United States to limit the total value of 

12 Chinese goods that may be procured by the United States 

13 Government during a calendar year to not more than the 

14 total value of United States goods procured by the Chinese 

15 Government if any during the preceding calendar year. 

16 SEC. 3. CERTIFICATION; PROHIBITION AND LIMITATION ON 

17 UNITED STATES PROCUREMENT OF CHINESE 

18 GOODS. 

19 (a) CERTIFICATION.—Not later than March 1 of each 

20 year beginning in 2011, the Secretary of Commerce shall 

21 submit to Congress a certification in writing that contains 

22 the following: 

23 (1) A determination of whether or not the Chi24 nese Government has prohibited the procurement of 


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1 United States goods by the Chinese Government 

2 during the preceding calendar year. 

3 (2) If the Chinese Government has not prohib4 ited the procurement of United States goods by the 

5 Chinese Government during the preceding calendar 

6 year, an identification of the total value of United 

7 States goods procured by the Chinese Government 

8 during the preceding calendar year, as determined 

9 by the International Trade Administration under 

10 section 4. 

11 (b) PROHIBITION.—If the Secretary determines and 

12 certifies to Congress under subsection (a)(1) that the Chi13 nese Government has prohibited the procurement of 

14 United States goods by the Chinese Government during 

15 the preceding calendar year, then— 

16 (1) the head of each executive agency may not 

17 award a contract for the procurement of Chinese 

18 goods during the succeeding calendar year; and 

19 (2) the Secretary of Transportation shall pro20 hibit a State or other entity from using funds made 

21 available from the Highway Trust Fund or the Air22 port and Airway Trust Fund for the award of a con23 tract for the procurement of Chinese goods during 

24 the succeeding calendar year. 

25 (c) LIMITATION.— 


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1 (1) IN GENERAL.—If the Secretary determines 

2 and certifies to Congress under subsection (a)(1) 

3 that the Chinese Government has not prohibited the 

4 procurement of United States goods by the Chinese 

5 Government during the preceding calendar year, 

6 then the total value of Chinese goods that may be 

7 procured by the United States Government during 

8 the succeeding calendar year may not exceed the 

9 total value of United States goods procured by the 

10 Chinese Government during the preceding calendar 

11 year, as identified under subsection (a)(2). 

12 (2) RULE OF CONSTRUCTION.—For purposes of 

13 determining the total value of Chinese goods that 

14 may be procured by the United States Government 

15 during a calendar year under paragraph (1), the 

16 total value of Chinese goods procured by a State or 

17 other entity using funds made available from the 

18 Highway Trust Fund or the Airport and Airway 

19 Trust Fund during the preceding calendar year shall 

20 be deemed to be Chinese goods procured by the 

21 United States Government. 

22 SEC. 4. ITA PROGRAM AND NOTIFICATION. 

23 (a) PROGRAM.—The International Trade Administra24 tion shall establish a program— 


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1 (1) to identify the total value of United States 

2 goods procured by the Chinese Government on an 

3 annual basis, as required under section 3(a)(2), in4 cluding an accounting of the value of such procure5 ment; and 

6 (2) to provide notification in accordance with 

7 subsection (b). 

8 (b) NOTIFICATION.—The International Trade Ad9 ministration shall publish notice in the Federal Register 

10 on or as soon as practicable after the date on which the 

11 total value of Chinese goods procured by the United States 

12 Government equals 50 percent, 75 percent, and 100 per13 cent of the total value of United States goods procured 

14 by the Chinese Government during the preceding calendar 

15 year for purposes of complying with the limitation under 

16 section 3(c). 

17 SEC. 5. DEFINITIONS. 

18 In this Act: 

19 (1) CHINESE GOOD.—The term ‘‘Chinese good’’ 

20 means a good that is the growth, product, or manu21 facture of the People’s Republic of China. A good 

22 shall be determined to be the manufacture of the 

23 People’s Republic of China for purposes of this para24 graph if the sum of— 


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1 (A) the cost or value of the materials pro2 duced in China, plus 

3 (B) the direct costs of processing oper4 ations performed in China, 

5 is not less than 50 percent of the appraised value of 

6 such good at the time it is entered. 

7 (2) CHINESE GOVERNMENT.—The term ‘‘Chi8 nese Government’’ means the central government of 

9 the People’s Republic of China and any other gov10 ernmental entity, including— 

11 (A) any agency or instrumentality of the 

12 Chinese Government; 

13 (B) any entity that is owned or controlled, 

14 directly or indirectly, by the Chinese Govern15 ment; and 

16 (C) any Chinese provincial or local govern17 mental entity. 

18 (3) EXECUTIVE AGENCY.—The term ‘‘executive 

19 agency’’ has the meaning given the term in section 

20 4 of the Office of Federal Procurement Policy Act 

21 (41 U.S.C. 403). 

22 (4) SECRETARY.—The term ‘‘Secretary’’ means 

23 the Secretary of Commerce. 

24 (5) UNITED STATES GOOD.—The term ‘‘United 

25 States good’’ means a good that is the growth, prodVerDate Mar 15 2010 01:11 May 14, 2010 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H5312.IH H5312

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1 uct, or manufacture of the United States. A good 

2 shall be determined to be the manufacture of the 

3 United States for purposes of this paragraph if the 

4 sum of— 

5 (A) the cost or value of the materials pro6 duced in the United States, plus 

7 (B) the direct costs of processing oper8 ations performed in the United States, 

9 is not less than 50 percent of the appraised value of 

10 such good at the time it is entered. 

Æ 


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