I 
109TH CONGRESS 
1ST SESSION H. R. 1575 
To authorize appropriate action if the negotiations with the People’s Republic 
of China regarding China’s undervalued currency and currency manipula-
tion are not successful. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 12, 2005 
Mrs. MYRICK (for herself and Mr. SPRATT) introduced the following bill; 
which was referred to the Committee on Ways and Means 
A BILL 
To authorize appropriate action if the negotiations with the 
People’s Republic of China regarding China’s under-
valued currency and currency manipulation are not suc-
cessful. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. FINDINGS. 
Congress makes the following findings: 
(1) The currency of the People’s Republic of 
China, the yuan, is artificially pegged at a level sig-
nificantly below its market value. Economists esti-
mate the yuan to be undervalued by between 15 per-
cent and 40 percent or an average of 27.5 percent. 
(2) The undervaluation of the yuan makes ex-
ports from the People’s Republic of China less ex-
pensive for foreign consumers and makes foreign 
products more expensive for Chinese consumers. The 
effective result is a significant subsidization of Chi-
na’s exports and a virtual tariff on foreign imports, 
leading the People’s Republic of China to enjoy sig-
nificant trade surpluses with its international trad-
ing partners. The United States trade deficit with 
China has widened from $83,800,000,000 in 2000 
to $162,000,000,000 in 2004, resulting in an aggre-
gate 
deficit 
with 
China 
of 
more 
than 
$555,900,000,000 for that 5-year period. 
(3) China’s undervalued currency and the 
United States trade deficit with the People’s Repub-
lic of China is contributing to significant United 
States job losses and harming United States busi-
nesses. In particular, the United States manufac-
turing sector has lost more than 1,376,000 jobs 
since January 2001. 
(4) The Government of the People’s Republic of 
China has intervened in the foreign exchange mar-
kets to hold the value of the yuan within an artificial
trading range. China’s foreign reserves are estimated 
to be more than $609,900,000,000 as of the end of 
2004, and have increased at a level higher than that 
of any other country. 
(5) China’s undervalued currency and the Chi-
nese Government’s intervention in the value of its 
currency violates the spirit and letter of the world 
trading system of which the People’s Republic of 
China is now a member. 
(6) The Government of the People’s Republic of 
China has failed to promptly address concerns raised 
by the United States and the international commu-
nity regarding the value of its currency. 
(7) Article XXI of the GATT 1994 (as defined 
in section 2(1)(B) of the Uruguay Round Agree-
ments Act (19 U.S.C. 3501(1)(B)) allows a member 
of the World Trade Organization to take any action 
which it considers necessary for the protection of its 
essential security interests. Protecting the United 
States manufacturing sector is essential to the secu-
rity interests of the United States.
SEC. 2. NEGOTIATIONS AND CERTIFICATION REGARDING 
THE CURRENCY VALUATION POLICY OF THE 
PEOPLE’S REPUBLIC OF CHINA. 
(a) IN GENERAL.—Notwithstanding the provisions of 
title I of Public Law 106–286 (19 U.S.C. 2431 note), on 
and after the date that is 180 days after the date of enact-
ment of this Act, unless a certification described in sub-
section (b) has been made to Congress, there shall be im-
posed a rate of duty of 27.5 percent ad valorem on any 
article that is the growth, product, or manufacture of the 
People’s Republic of China and is imported directly or in-
directly into the United States, in addition to any other 
duty that would otherwise apply to such article. 
(b) CERTIFICATION.—The certification described in 
this subsection means a certification by the President to 
Congress that the People’s Republic of China is no longer 
manipulating the rate of exchange between its currency 
and the United States dollar for purposes of preventing 
an effective balance of payments and gaining an unfair 
competitive advantage in international trade. The certifi-
cation shall also include a determination that the currency 
of the People’s Republic of China is valued in accordance 
with accepted market-based trading policies. 
(c) NEGOTIATIONS.—Beginning on the date of enact-
ment of this Act, the Secretary of the Treasury, in con-
sultation with the United States Trade Representative,
shall begin negotiations with the People’s Republic of 
China to ensure that the People’s Republic of China 
adopts a process that leads to a market-based system of 
currency valuation. 
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