IV 
108TH CONGRESS 
1ST SESSION 
H. RES. 414
To encourage the People’s Republic of China to fulfill its commitments under 
international trade agreements, support the United States manufacturing 
sector, and establish monetary and financial market reforms. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 28, 2003
Mr. ENGLISH (for himself, Mr. DELAY, Mr. BALLENGER, Mr. GREEN of Wis-
consin, Mr. MANZULLO, Mr. ROGERS of Michigan, Mr. STENHOLM, Ms. 
PRYCE of Ohio, Mr. COLLINS, Mr. BAKER, Mr. GILLMOR, Mrs. BIGGERT, 
Ms. HART, Mr. KING of Iowa, Mr. MCINTYRE, Mr. SOUDER, Mr. HILL, 
Mr. DEMINT, Mr. HAYWORTH, Mr. COBLE, Mr. EVERETT, Mr. PLATTS, 
Mr. EHLERS, Mr. HAYES, Mr. BURR, Mr. NORWOOD, Mr. BOSWELL, Mr. 
LIPINSKI, Mrs. MYRICK, Mr. JOHNSON of Illinois, Mr. OTTER, Mr. 
UPTON, Mr. FORD, Mr. SENSENBRENNER, Mr. OXLEY, Mr. RYAN of 
Wisconsin, Mr. SHUSTER, Mr. BROWN of South Carolina, Mr. CRAMER, 
Mr. MCINNIS, and Mr. GOODLATTE) submitted the following resolution; 
which was referred to the Committee on Ways and Means 
RESOLUTION 
To encourage the People’s Republic of China to fulfill its 
commitments under international trade agreements, sup-
port the United States manufacturing sector, and estab-
lish monetary and financial market reforms.
Whereas United States investors and exporters to the Peo-
ple’s Republic of China recognize the opportunity of 
doing business with China but have raised serious con-
cerns that many of the commitments China made upon
•HRES 414 IH 
joining the World Trade Organization have not yet been 
implemented or implementation has been inadequate; 
Whereas market barriers and unfair trade practices continue 
to exist, including high tariffs, subsidies, technical trade 
restrictions, counterfeiting, tied trade, violations of intel-
lectual property rights, and nonmarket-based industrial 
policies that limit United States exports; 
Whereas increases in global trade will lead to faster growth 
of the United States economy and an improved quality of 
life for workers in the People’s Republic of China; 
Whereas China is one of the fastest-growing economies in the 
world and an important expanding market for United 
States exports; 
Whereas China has made progress in implementing the com-
mitments that it made upon joining the World Trade Or-
ganization, including the required reduction of its tariffs 
on many industrial goods of importance to United States 
manufacturers; 
Whereas China must move more quickly to implement its 
World Trade Organization commitments fully and to re-
move many market access barriers; 
Whereas the currency of the People’s Republic of China, the 
renminbi, has been fixed relative to the United States 
dollar since 1994; 
Whereas a systemically misvalued currency by any large 
country can have damaging trade-distorting effects on 
both that country and its trading partners by decreasing 
the price of exports of products of that country and in-
creasing the price of imports to that country;
•HRES 414 IH 
Whereas China’s trade liberalization will cause economic im-
balances in its market and world markets unless China 
also implements capital account liberalization; 
Whereas the market-based valuation of currencies is a key 
component to resilient global trading systems by enabling 
smoother transitions to reflect underlying economic fun-
damentals in a country; 
Whereas China’s substantial foreign reserves reduce China’s 
susceptibility to currency crises and, therefore, the need 
for continued use of a fixed currency; 
Whereas the International Monetary Fund (IMF) has advised 
China to adopt a more flexible exchange rate policy, and 
has indicated that such a change would not have serious 
adverse consequences for that country, although IMF of-
ficials have expressed concern about the weakness of Chi-
na’s banking system and that it may not have the ability 
to move quickly towards a floating rate; 
Whereas the Joint Ministerial Statement in September 2003 
of the Asia-Pacific Economic Cooperation Finance Min-
isterial Meeting ‘‘emphasized the importance of accel-
erating structural reform, adopting macroeconomic poli-
cies that promote sustainable growth, supported by ap-
propriate exchange rate policies that facilitate orderly 
and balanced external adjustment . . . [and] noted a view 
expressed at the meeting that more flexible exchange rate 
management, in some cases, would promote this objec-
tive’’; 
Whereas the Group of Seven Finance Ministers and Central 
Bank Governors in their September 2003 Communique 
have emphasized that ‘‘more flexibility in exchange rates 
is desirable for major countries or economic areas to pro-
•HRES 414 IH 
mote smooth and widespread adjustments in the inter-
national financial system, based on market mechanisms’’; 
Whereas China’s central bank governor has stated that the 
value of the renminbi will eventually be determined by 
market forces rather than be fixed to the dollar but has 
not given any indication of when this change in policy 
will occur; 
Whereas China recognizes that it is in its own interest to re-
form its exchange rate regime and its banking system in 
order to establish a resilient economy and control its rate 
of economic expansion; 
Whereas China is taking concrete steps to move to a more 
flexible exchange rate regime by increasing private owner-
ship of its banking system and by establishing a technical 
working group on a range of financial sector issues, in-
cluding exchange rate policy; 
Whereas manufacturing is important to the health of the 
United States economy, generating high quality products, 
personal opportunity, productive careers, wealth, high 
standards of living, and economic growth; 
Whereas the manufacturing sector is the leading source of 
new patents and innovation in the United States econ-
omy, which helps drive economic growth at home and 
abroad; 
Whereas the manufacturing sector faces the most intense 
global competition in United States history, making it 
difficult for many firms to operate profitably and earn a 
sufficient return on capital invested, and manufacturing 
costs continue to increase for many reasons, including 
governmental actions; and
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Whereas the manufacturing sector in the United States seeks 
a global level playing field for competition and markets: 
Now, therefore, be it
Resolved, That—
(1) the House of Representatives commends the 
President and his Administration for continued ef-
forts to engage the Government of the People’s Re-
public of China directly and to encourage China to 
fulfill its commitments as a member of the World 
Trade Organization; 
(2) the House of Representatives encourages 
the People’s Republic of China to meet its commit-
ments to the trade rules and principles of the inter-
national community of which it is now a member; 
(3) the Chinese economy would benefit from an 
exchange rate determined by the market in order to 
avoid artificial rates that can lead to market and 
trade distortions; 
(4) the House of Representatives will continue 
to monitor closely and work with the Administration 
to encourage China’s efforts to modernize its finan-
cial system, establish a more flexible exchange rate, 
and comply with its trade agreement obligations; 
(5) the House of Representatives urges the Ad-
ministration to continue its intensive discussions 
with officials from the Government of the People’s