I 
109TH CONGRESS 
1ST SESSION H. R. 2414
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 
MAY 17, 2005
Mr. ROGERS of Michigan (for himself and Mr. MCCOTTER) 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 Re-
public 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 dis-
advantage to United States producers resulting from Chi-
na’s exchange rate policies.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Currency Rate Adjust-
ment and Trade Enforcement Act’’.
SEC. 2. ANALYSIS OF AND REPORT ON EXCHANGE RATE 
POLICIES OF CHINA. 
(a) ANALYSIS.—
(1) IN GENERAL.—The Secretary of the Treas-
ury shall, upon the enactment of this Act and annu-
ally thereafter, analyze the exchange rate policies of 
the People’s Republic of China in order to determine 
whether that country maintains the rate of exchange 
between the currency of that country and the United 
States dollar in a manner that interferes with effec-
tive balance of payments adjustments or confers a 
competitive advantage in international trade that 
would not exist if the currency value were set by 
market forces. 
(2) GLOBAL
BALANCE
OF
TRADE.—In con-
ducting the analysis under paragraph (1), the Sec-
retary of the Treasury shall determine the global 
balance of trade of the People’s Republic of China 
and, in making that determination, compare the im-
port and export data for China by country, as re-
ported by the Chinese Government, with the export 
and import data for China, as reported by the gov-
ernment of each country that is a trading partner of 
China. In making that determination, the Secretary 
should take into account reexports to and from 
China through Hong Kong.
(b) COMPUTATION
OF
RATE
OF
UNDERVALU-
ATION.—If the Secretary of the Treasury makes an af-
firmative determination under subsection (a)(1), the Sec-
retary shall compute the rate of undervaluation against 
the dollar in the form of a percentage. 
(c) REPORTS TO CONGRESS.—The Secretary of the 
Treasury shall submit to the Committee on Ways and 
Means and the Committee on Energy and Commerce of 
the House of Representatives and to the Committee on 
Finance of the Senate a report on the Secretary’s analysis 
and findings under subsection (a), and any rate computed 
under subsection (b). The report shall be submitted—
(1) with respect to the analysis conducted upon 
the enactment of this Act, not later than 60 days 
after the date of the enactment of this Act; and 
(2) with respect to each subsequent analysis, at 
the end of each 1-year period thereafter. 
(d) RELIEF.—In any case in which a report of the 
Secretary of the Treasury under subsection (c) includes 
a rate of undervaluation computed under subsection (b), 
the President shall seek authorization in the World Trade 
Organization through expedited dispute settlement—
(1) to offset the subsidy inherent in the under-
valued currency by the application of across-the-
board equivalent tariffs, on the basis of the rate of
undervaluation computed under subsection (b), on 
the importation into the United States of all prod-
ucts of the People’s Republic of China; and 
(2) to take measures to offset the disadvantage 
resulting from such undervaluation to exports to the 
People’s Republic of China of goods and services of 
the United States. 
(e) MODIFICATIONS.—To the extent consistent with 
the obligations of the United States under the World 
Trade Organization—
(1) any measures imposed under subsection (d) 
shall be modified annually to the extent necessary to 
comply with the most recent report of the Secretary 
of the Treasury under subsection (c); and 
(2) the Secretary of the Treasury may modify 
any measures imposed under subsection (d) or modi-
fications thereto under paragraph (1) 30 days after 
notifying the Congress of a substantial change in the 
degree of currency undervaluation by the People’s 
Republic of China.
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