II
Calendar No. 575
106TH CONGRESS
2D SESSION
H. R. 4444
IN THE SENATE OF THE UNITED STATES
MAY 25, 2000
Received; read twice and placed on the calendar
AN ACT
To authorize extension of nondiscriminatory treatment (nor-
mal trade relations treatment) to the People’s Republic
of China, and to establish a framework for relations
between the United States and the People’s Republic
of China.
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DIVISION 
A—NORMAL 
TRADE
RELATIONS FOR THE PEO-
PLE’S REPUBLIC OF CHINA
TITLE I—NORMAL TRADE
RELATIONS
SEC. 101. TERMINATION OF APPLICATION OF CHAPTER 1
OF TITLE IV OF THE TRADE ACT OF 1974 TO
THE PEOPLE’S REPUBLIC OF CHINA.
(a) PRESIDENTIAL DETERMINATIONS AND EXTEN-
SION
OF NONDISCRIMINATORY TREATMENT.—Notwith-
standing any provision of chapter 1 of title IV of the
Trade Act of 1974 (19 U.S.C. 2431 et seq.), as designated
by section 3(a)(2) of this Act, the President may—
(1) determine that such chapter should no
longer apply to the People’s Republic of China; and
(2) after making a determination under para-
graph (1) with respect to the People’s Republic of
China, proclaim the extension of nondiscriminatory
treatment (normal trade relations treatment) to the
products of that country.
(b) ACCESSION
OF
THE PEOPLE’S REPUBLIC
OF
CHINA TO THE WORLD TRADE ORGANIZATION.—Prior to
making the determination provided for in subsection
(a)(1) and pursuant to the provisions of section 122 of
the Uruguay Round Agreements Act (19 U.S.C. 3532),
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the President shall transmit a report to Congress certi-
fying that the terms and conditions for the accession of
the People’s Republic of China to the World Trade Orga-
nization are at least equivalent to those agreed between
the United States and the People’s Republic of China on
November 15, 1999.
SEC. 102. EFFECTIVE DATE.
(a) EFFECTIVE
DATE
OF
NONDISCRIMINATORY
TREATMENT.—The extension of nondiscriminatory treat-
ment pursuant to section 101(a) shall be effective no ear-
lier than the effective date of the accession of the People’s
Republic of China to the World Trade Organization.
(b) TERMINATION
OF APPLICABILITY
OF TITLE
IV.—On and after the effective date under subsection (a)
of the extension of nondiscriminatory treatment to the
products of the People’s Republic of China, chapter 1 of
title IV of the Trade Act of 1974 (as designated by section
103(a)(2) of this Act) shall cease to apply to that country.
SEC. 103. RELIEF FROM MARKET DISRUPTION.
(a) IN GENERAL.—Title IV of the Trade Act of 1974
(19 U.S.C. 2431 et seq.) is amended—
(1) in the title heading, by striking ‘‘CUR-
RENTLY’’;
(2) by inserting before section 401 the fol-
lowing:
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‘‘CHAPTER 1—TRADE RELATIONS WITH CERTAIN
COUNTRIES’’;
and
(3) by adding at the end the following new
chapter:
‘‘CHAPTER 2—RELIEF FROM MARKET DISRUP-
TION TO INDUSTRIES AND DIVERSION OF
TRADE TO THE UNITED STATES MARKET
‘‘SEC. 421. ACTION TO ADDRESS MARKET DISRUPTION.
‘‘(a) PRESIDENTIAL ACTION.—If a product of the
People’s Republic of China is being imported into the
United States in such increased quantities or under such
conditions as to cause or threaten to cause market disrup-
tion to the domestic producers of a like or directly com-
petitive product, the President shall, in accordance with
the provisions of this section, proclaim increased duties or
other import restrictions with respect to such product, to
the extent and for such period as the President considers
necessary to prevent or remedy the market disruption.
‘‘(b) INITIATION OF AN INVESTIGATION.—(1) Upon
the filing of a petition by an entity described in section
202(a) of the Trade Act of 1974 (19 U.S.C. 2252(a)),
upon the request of the President or the United States
Trade Representative (in this subtitle referred to as the
‘Trade Representative’), upon resolution of either the
Committee on Ways and Means of the House of Rep-
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resentatives, or the Committee on Finance of the Senate
(in this subtitle referred to as the ‘Committees’) or on its
own motion, the United States International Trade Com-
mission (in this subtitle referred to as the ‘Commission’)
shall promptly make an investigation to determine whether
products of the People’s Republic of China are being im-
ported into the United States in such increased quantities
or under such conditions as to cause or threaten to cause
market disruption to the domestic producers of like or di-
rectly competitive products.
‘‘(2) The limitations on investigations set forth in
section 202(h)(1) of the Trade Act of 1974 (19 U.S.C.
2252(h)(1)) shall apply to investigations conducted under
this section.
‘‘(3) The provisions of subsections (a)(8) and (i) of
section 202 of the Trade Act of 1974 (19 U.S.C.
2252(a)(8) and (i)), relating to treatment of confidential
business information, shall apply to investigations con-
ducted under this section.
‘‘(4) Whenever a petition is filed, or a request or reso-
lution is received, under this subsection, the Commission
shall transmit a copy thereof to the President, the Trade
Representative, the Committee on Ways and Means of the
House of Representatives, and the Committee of Finance
of the Senate, except that in the case of confidential busi-
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ness information, the copy may include only nonconfiden-
tial summaries of such information.
‘‘(5) The Commission shall publish notice of the com-
mencement of any proceeding under this subsection in the
Federal Register and shall, within a reasonable time there-
after, hold public hearings at which the Commission shall
afford interested parties an opportunity to be present, to
present evidence, to respond to the presentations of other
parties, and otherwise to be heard.
‘‘(c) MARKET DISRUPTION.—(1) For purposes of this
section, market disruption exists whenever imports of an
article like or directly competitive with an article produced
by a domestic industry are increasing rapidly, either abso-
lutely or relatively, so as to be a significant cause of mate-
rial injury, or threat of material injury, to the domestic
industry.
‘‘(2) For purposes of paragraph (1), the term ‘signifi-
cant cause’ refers to a cause which contributes signifi-
cantly to the material injury of the domestic industry, but
need not be equal to or greater than any other cause.
‘‘(d) FACTORS IN DETERMINATION.—In determining
whether market disruption exists, the Commission shall
consider objective factors, including—
‘‘(1) the volume of imports of the product which
is the subject of the investigation;
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‘‘(2) the effect of imports of such product on
prices in the United States for like or directly com-
petitive articles; and
‘‘(3) the effect of imports of such product on
the domestic industry producing like or directly com-
petitive articles.
The presence or absence of any factor under paragraph
(1), (2), or (3) is not necessarily dispositive of whether
market disruption exists.
‘‘(e) TIME
FOR COMMISSION DETERMINATIONS.—
The Commission shall make and transmit to the President
and the Trade Representative its determination under
subsection (b)(1) at the earliest practicable time, but in
no case later than 60 days (or 90 days in the case of a
petition requesting relief under subsection (i)) after the
date on which the petition is filed, the request or resolu-
tion is received, or the motion is adopted, under subsection
(b). If the Commissioners voting are equally divided with
respect to its determination, then the determination
agreed upon by either group of Commissioners may be
considered by the President and the Trade Representative
as the determination of the Commission.
‘‘(f) RECOMMENDATIONS OF COMMISSION ON PRO-
POSED REMEDIES.—If the Commission makes an affirma-
tive determination under subsection (b), or a determina-
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subsection (e), the recommendations of the Commis-
sion on proposed remedies under subsection (f) and
an explanation of the basis for each recommenda-
tion.
‘‘(C) Any dissenting or separate views by mem-
bers of the Commission regarding the determination
and any recommendation referred to in subpara-
graphs (A) and (B).
‘‘(D) A description of—
‘‘(i) the short- and long-term effects that
implementation of the action recommended
under subsection (f) is likely to have on the pe-
titioning domestic industry, on other domestic
industries, and on consumers; and
‘‘(ii) the short- and long-term effects of not
taking the recommended action on the peti-
tioning domestic industry, its workers, and the
communities where production facilities of such
industry are located, and on other domestic in-
dustries.
‘‘(3) The Commission, after submitting a report to
the President under paragraph (1), shall promptly make
it available to the public (but shall not include confidential
business information) and cause a summary thereof to be
published in the Federal Register.
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‘‘(h) OPPORTUNITY TO PRESENT VIEWS AND EVI-
DENCE ON PROPOSED MEASURE AND RECOMMENDATION
TO THE PRESIDENT.—(1) Within 20 days after receipt of
the Commission’s report under subsection (g) (or 15 days
in the case of an affirmative preliminary determination
under subsection (i)(1)(B)), the Trade Representative
shall publish in the Federal Register notice of any meas-
ure proposed by the Trade Representative to be taken pur-
suant to subsection (a) and of the opportunity, including
a public hearing, if requested, for importers, exporters,
and other interested parties to submit their views and evi-
dence on the appropriateness of the proposed measure and
whether it would be in the public interest.
‘‘(2) Within 55 days after receipt of the report under
subsection (g) (or 35 days in the case of an affirmative
preliminary determination under subsection (i)(1)(B)), the
Trade Representative, taking into account the views and
evidence received under paragraph (1) on the measure
proposed by the Trade Representative, shall make a rec-
ommendation to the President concerning what action, if
any, to take to prevent or remedy the market disruption.
‘‘(i) CRITICAL CIRCUMSTANCES.—(1) When a peti-
tion filed under subsection (b) alleges that critical cir-
cumstances exist and requests that provisional relief be
provided under this subsection with respect to the product
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identified in the petition, the Commission shall, not later
than 45 days after the petition containing the request is
filed—
‘‘(A) determine whether delay in taking action
under this section would cause damage to the rel-
evant domestic industry which would be difficult to
repair; and
‘‘(B) if the determination under subparagraph
(A) is affirmative, make a preliminary determination
of whether imports of the product which is the sub-
ject of the investigation have caused or threatened to
cause market disruption.
If the Commissioners voting are equally divided with re-
spect to either of its determinations, then the determina-
tion agreed upon by either group of Commissioners may
be considered by the President and the Trade Representa-
tive as the determination of the Commission.
‘‘(2) On the date on which the Commission completes
its determinations under paragraph (1), the Commission
shall transmit a report on the determinations to the Presi-
dent and the Trade Representative, including the reasons
for its determinations. If the determinations under para-
graph (1) are affirmative, or may be considered by the
President or the Trade Representative as affirmative
under paragraph (1), the Commission shall include in its
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report its recommendations on proposed provisional meas-
ures to be taken to prevent or remedy the market disrup-
tion. Only those members of the Commission who agreed
to the affirmative determinations under paragraph (1) are
eligible to vote on the proposed provisional measures to
prevent or remedy market disruption. Members of the
Commission who did not agree to the affirmative deter-
minations may submit, in the report, dissenting or sepa-
rate views regarding the determination and any rec-
ommendation of provisional measures referred to in this
paragraph.
‘‘(3) If the determinations under paragraph (1) are
affirmative, or may be considered by the President or the
Trade Representative as affirmative under paragraph (1),
the Trade Representative shall, within 10 days after re-
ceipt of the Commission’s report, determine the amount
or extent of provisional relief that is necessary to prevent
or remedy the market disruption and shall provide a rec-
ommendation to the President on what provisional meas-
ures, if any, to take.
‘‘(4)(A) The President shall determine whether to
provide provisional relief and proclaim such relief, if any,
within 10 days after receipt of the recommendation from
the Trade Representative.
‘‘(B) Such relief may take the form of—
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‘‘(i) the imposition of or increase in any duty;
‘‘(ii) any modification, or imposition of any
quantitative restriction on the importation of an ar-
ticle into the United States; or
‘‘(iii) any combination of actions under clauses
(i) and (ii).
‘‘(C) Any provisional action proclaimed by the Presi-
dent pursuant to a determination of critical circumstances
shall remain in effect not more than 200 days.
‘‘(D) Provisional relief shall cease to apply upon the
effective date of relief proclaimed under subsection (a),
upon a decision by the President not to provide such relief,
or upon a negative determination by the Commission
under subsection (b).
‘‘(j) AGREEMENTS WITH THE PEOPLE’S REPUBLIC
OF CHINA.—(1) The Trade Representative is authorized
to enter into agreements for the People’s Republic of
China to take such action as necessary to prevent or rem-
edy market disruption, and should seek to conclude such
agreements before the expiration of the 60-day consulta-
tion period provided for under the product-specific safe-
guard provision of the Protocol of Accession of the Peo-
ple’s Republic of China to the WTO, which shall com-
mence not later than 5 days after the Trade Representa-
tive receives an affirmative determination provided for in
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subsection (e) or a determination which the Trade Rep-
resentative considers to be an affirmative determination
pursuant to subsection (e).
‘‘(2) If no agreement is reached with the People’s Re-
public of China pursuant to consultations under para-
graph (1), or if the President determines than an agree-
ment reached pursuant to such consultations is not pre-
venting or remedying the market disruption at issue, the
President shall provide import relief in accordance with
subsection (a).
‘‘(k) STANDARD FOR PRESIDENTIAL ACTION.—(1)
Within 15 days after receipt of a recommendation from
the Trade Representative under subsection (h) on the ap-
propriate action, if any, to take to prevent or remedy the
market disruption, the President shall provide import re-
lief for such industry pursuant to subsection (a), unless
the President determines that provision of such relief is
not in the national economic interest of the United States
or, in extraordinary cases, that the taking of action pursu-
ant to subsection (a) would cause serious harm to the na-
tional security of the United States.
‘‘(2) The President may determine under paragraph
(1) that providing import relief is not in the national eco-
nomic interest of the United States only if the President
finds that the taking of such action would have an adverse
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impact on the United States economy clearly greater than
the benefits of such action.
‘‘(l) PUBLICATION OF DECISION AND REPORTS.—(1)
The President’s decision, including the reasons therefor
and the scope and duration of any action taken, shall be
published in the Federal Register.
‘‘(2) The Commission shall promptly make public any
report transmitted under this section, but shall not make
public any information which the Commission determines
to be confidential, and shall publish notice of such report
in the Federal Register.
‘‘(m) EFFECTIVE DATE OF RELIEF.—Import relief
under this section shall take effect not later than 15 days
after the President’s determination to provide such relief.
‘‘(n) MODIFICATIONS OF RELIEF.—(1) At any time
after the end of the 6-month period beginning on the date
on which relief under subsection (m) first takes effect, the
President may request that the Commission provide a re-
port on the probable effect of the modification, reduction,
or termination of the relief provided on the relevant indus-
try. The Commission shall transmit such report to the
President within 60 days of the request.
‘‘(2) The President may, after receiving a report from
the Commission under paragraph (1), take such action to
modify, reduce, or terminate relief that the President de-