I 

108TH CONGRESS 

2D SESSION H. R. 4986 

To require the Secretary of the Treasury to analyze and report on the 

exchange rate policies of the People’s Republic of China, and to require 

that measures consistent with the obligations of the United States under 

the World Trade Organization be taken to offset any disadvantage to 

United States producers resulting from China’s exchange rate policies. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 22, 2004 

Mr. ROGERS of Michigan introduced the following bill; which was referred to 

the Committee on Ways and Means 

A BILL 

To require the Secretary of the Treasury to analyze and 

report on the exchange rate policies of the People’s Republic of China, and to require that measures consistent 

with the obligations of the United States under the 

World Trade Organization be taken to offset any disadvantage to United States producers resulting from China’s exchange rate policies. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Currency Rate Adjust5 ment and Trade Enforcement Act’’. 
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1 SEC. 2. ANALYSIS OF AND REPORT ON EXCHANGE RATE 

2 POLICIES OF CHINA. 

3 (a) ANALYSIS.— 

4 (1) IN GENERAL.—The Secretary of the Treas5 ury shall, upon the enactment of this Act and annu6 ally thereafter, analyze the exchange rate policies of 

7 the People’s Republic of China in order to determine 

8 whether that country maintains the rate of exchange 

9 between the currency of that country and the United 

10 States dollar in a manner that interferes with effec11 tive balance of payments adjustments or confers a 

12 competitive advantage in international trade that 

13 would not exist if the currency value were set by 

14 market forces. 

15 (2) GLOBAL BALANCE OF TRADE.—In con16 ducting the analysis under paragraph (1), the Sec17 retary of the Treasury shall determine the global 

18 balance of trade of the People’s Republic of China 

19 and, in making that determination, compare the im20 port and export data for China by country, as re21 ported by the Chinese Government, with the export 

22 and import data for China, as reported by the gov23 ernment of each country that is a trading partner of 

24 China. In making that determination, the Secretary 

25 should take into account reexports to and from 

26 China through Hong Kong. 
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1 (b) COMPUTATION OF RATE OF UNDERVALU2 ATION.—If the Secretary of the Treasury makes an af3 firmative determination under subsection (a)(1), the Sec4 retary shall compute the rate of undervaluation against 

5 the dollar in the form of a percentage. 

6 (c) REPORTS TO CONGRESS.—The Secretary of the 

7 Treasury shall submit to the Committee on Ways and 

8 Means and the Committee on Energy and Commerce of 

9 the House of Representatives and to the Committee on 

10 Finance of the Senate a report on the Secretary’s analysis 

11 and findings under subsection (a), and any rate computed 

12 under subsection (b). The report shall be submitted— 

13 (1) with respect to the analysis conducted upon 

14 the enactment of this Act, not later than 60 days 

15 after the date of the enactment of this Act; and 

16 (2) with respect to each subsequent analysis, at 

17 the end of each 1-year period thereafter. 

18 (d) RELIEF.—In any case in which a report of the 

19 Secretary of the Treasury under subsection (c) includes 

20 a rate of undervaluation computed under subsection (b), 

21 the President shall seek authorization in the World Trade 

22 Organization through expedited dispute settlement— 

23 (1) to offset the subsidy inherent in the under24 valued currency by the application of across-the25 board equivalent tariffs, on the basis of the rate of 
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1 undervaluation computed under subsection (b), on 

2 the importation into the United States of all prod3 ucts of the People’s Republic of China; and 

4 (2) to take measures to offset the disadvantage 

5 resulting from such undervaluation to exports to the 

6 People’s Republic of China of goods and services of 

7 the United States. 

8 (e) MODIFICATIONS.—To the extent consistent with 

9 the obligations of the United States under the World 

10 Trade Organization— 

11 (1) any measures imposed under subsection (d) 

12 shall be modified annually to the extent necessary to 

13 comply with the most recent report of the Secretary 

14 of the Treasury under subsection (c); and 

15 (2) the Secretary of the Treasury may modify 

16 any measures imposed under subsection (d) or modi17 fications thereto under paragraph (1) 30 days after 

18 notifying the Congress of a substantial change in the 

19 degree of currency undervaluation by the People’s 

20 Republic of China. 

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