SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Fix United States Gov-
ernment Contracting Deficit with China Act’’. 
SEC. 2. FINDINGS AND STATEMENT OF POLICY. 
(a) FINDINGS.—Congress finds the following: 
(1) The purchase of government goods and 
services is an important means through which the 
government fulfills its constitutional duties to pro-
vide for the common defense and promote the gen-
eral welfare of the United States. 
(2) American taxpayers expect that government 
procurement serves the interests of all Americans. 
(3) The United States and several of its trading 
partners are signatories to the WTO Agreement on 
Government Procurement, which holds that signato-
ries agree to certain restraints with regard to gov-
ernment procurement. 
(4) However, the People’s Republic of China is 
not a signatory to the Agreement on Government 
Procurement, and that, accordingly, it is not a viola-
tion of that agreement for the Congress to establish 
procurement policies as best suit the American pub-
lic interest with regard to Chinese goods. 
(5) China has structured its government pro-
curement law to favor its domestic goods, as noted 
in article 10 of such law. 
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(6) China has also recently announced a plan to 
favor so-called ‘‘indigenous innovation’’ under which 
the Chinese Government would expressly favor lo-
cally developed products and technologies. 
(7) American companies have had little or no 
success in accessing Chinese Government procure-
ment contracts, while Chinese companies have had 
great success in selling goods for United States Gov-
ernment projects. 
(b) STATEMENT OF POLICY.—Accordingly, it shall be 
the policy of the United States 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. 
SEC. 3. CERTIFICATION; PROHIBITION AND LIMITATION ON 
UNITED STATES PROCUREMENT OF CHINESE 
GOODS. 
(a) CERTIFICATION.—Not later than March 1 of each 
year beginning in 2012, the Secretary of Commerce shall 
submit to Congress a certification in writing that contains 
the following: 
(1) A determination of whether or not the Chi-
nese Government has prohibited the procurement of 
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United States goods by the Chinese Government 
during the preceding calendar year. 
(2) If the Chinese Government has not prohib-
ited the procurement of United States goods by the 
Chinese Government during the preceding calendar 
year, an identification of the total value of United 
States goods procured by the Chinese Government 
during the preceding calendar year, as determined 
by the International Trade Administration under 
section 4. 
(b) PROHIBITION.—If the Secretary determines and 
certifies to Congress under subsection (a)(1) that the Chi-
nese Government has prohibited the procurement of 
United States goods by the Chinese Government during 
the preceding calendar year, then— 
(1) the head of each executive agency may not 
award a contract for the procurement of Chinese 
goods during the succeeding calendar year; and 
(2) the Secretary of Transportation shall pro-
hibit a State or other entity from using funds made 
available from the Highway Trust Fund or the Air-
port and Airway Trust Fund for the award of a con-
tract for the procurement of Chinese goods during 
the succeeding calendar year. 
(c) LIMITATION.— 
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(1) IN GENERAL.—If the Secretary determines 
and certifies to Congress under subsection (a)(1) 
that the Chinese Government has not prohibited the 
procurement of United States goods by the Chinese 
Government during the preceding calendar year, 
then the total value of Chinese goods that may be 
procured by the United States Government during 
the succeeding calendar year may not exceed the 
total value of United States goods procured by the 
Chinese Government during the preceding calendar 
year, as identified under subsection (a)(2). 
(2) RULE OF CONSTRUCTION.—For purposes of 
determining the total value of Chinese goods that 
may be procured by the United States Government 
during a calendar year under paragraph (1), the 
total value of Chinese goods procured by a State or 
other entity using funds made available from the 
Highway Trust Fund or the Airport and Airway 
Trust Fund during the preceding calendar year shall 
be deemed to be Chinese goods procured by the 
United States Government. 
SEC. 4. ITA PROGRAM AND NOTIFICATION. 
(a) PROGRAM.—The International Trade Administra-
tion shall establish a program— 
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(1) to identify the total value of United States 
goods procured by the Chinese Government on an 
annual basis, as required under section 3(a)(2), in-
cluding an accounting of the value of such procure-
ment; and 
(2) to provide notification in accordance with 
subsection (b). 
(b) NOTIFICATION.—The International Trade Ad-
ministration shall publish notice in the Federal Register 
on or as soon as practicable after the date on which the 
total value of Chinese goods procured by the United States 
Government equals 50 percent, 75 percent, and 100 per-
cent of the total value of United States goods procured 
by the Chinese Government during the preceding calendar 
year for purposes of complying with the limitation under 
section 3(c). 
SEC. 5. DEFINITIONS. 
In this Act: 
(1) CHINESE GOOD.—The term ‘‘Chinese good’’ 
means a good that is the growth, product, or manu-
facture of the People’s Republic of China. A good 
shall be determined to be the manufacture of the 
People’s Republic of China for purposes of this para-
graph if the sum of— 
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(A) the cost or value of the materials pro-
duced in China, plus 
(B) the direct costs of processing oper-
ations performed in China, 
is not less than 50 percent of the appraised value of 
such good at the time it is entered. 
(2) CHINESE GOVERNMENT.—The term ‘‘Chi-
nese Government’’ means the central government of 
the People’s Republic of China and any other gov-
ernmental entity, including— 
(A) any agency or instrumentality of the 
Chinese Government; 
(B) any entity that is owned or controlled, 
directly or indirectly, by the Chinese Govern-
ment; and 
(C) any Chinese provincial or local govern-
mental entity. 
(3) EXECUTIVE AGENCY.—The term ‘‘executive 
agency’’ has the meaning given the term in section 
4 of the Office of Federal Procurement Policy Act 
(41 U.S.C. 403). 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Commerce. 
(5) UNITED STATES GOOD.—The term ‘‘United 
States good’’ means a good that is the growth, prod-
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uct, or manufacture of the United States. A good 
shall be determined to be the manufacture of the 
United States for purposes of this paragraph if the 
sum of— 
(A) the cost or value of the materials pro-
duced in the United States, plus 
(B) the direct costs of processing oper-
ations performed in the United States, 
is not less than 50 percent of the appraised value of 
such good at the time it is entered. 
Æ 
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