I 
109TH CONGRESS 
1ST SESSION H. R. 3306
To amend the Tariff Act of 1930 and the Trade Act of 1974 to provide 
relief from certain practices by other countries, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 14, 2005
Mr. RANGEL (for himself, Ms. PELOSI, Mr. HOYER, Mr. MENENDEZ, Mr. 
CLYBURN, Mr. CARDIN, and Mr. LEVIN) introduced the following bill; 
which was referred to the Committee on Ways and Means, and in addi-
tion to the Committees on International Relations and Financial Services, 
for a period to be subsequently determined by the Speaker, in each case 
for consideration of such provisions as fall within the jurisdiction of the 
committee concerned 
A BILL 
To amend the Tariff Act of 1930 and the Trade Act of 
1974 to provide relief from certain practices by other 
countries, and for other purposes.
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 ‘‘Fair Trade with China 
Act of 2005’’. 
SEC. 2. FINDINGS. 
The Congress finds as follows:
(1) The growth of the economy of the People’s 
Republic of China is one of the most important de-
velopments of the 21st century. 
(2) The bilateral trade relationship between the 
United States and China is heavily imbalanced and 
is undermining the long-term economic health of the 
United States. 
(3) The United States trade deficit with China 
has doubled since 2000, reaching $162,000,000,000 
in 2004, the largest bilateral trade deficit in the 
world. 
(4) As a consequence of the trade deficit, the 
United States has had to borrow massive amounts 
of money from foreign governments. 
(5) The United States has accumulated more 
debt to foreign countries since 2000 than in the first 
220 years of the country’s history. 
(6) China has become a major purchaser of 
United States Treasury bonds, and United States 
indebtedness to the Government of China has grown 
by more than $100,000,000,000 since 2000. 
(7) The large amounts of United States dollars 
accumulated by the Government of China contribute 
to China’s acquisitions of United States companies,
such as the proposed acquisition of Unocal Corpora-
tion by the China National Offshore Oil Corporation. 
(8) China continues to violate many of the com-
mitments it made when it joined the World Trade 
Organization in 2001. 
(9) China’s inadequate enforcement of intellec-
tual property rights is resulting in infringement lev-
els of 90 percent or more for nearly all forms of in-
tellectual property, and cost American companies 
more than $2,500,000,000 in lost sales in 2004. 
(10) China’s industrial policies discriminate 
against foreign firms and products. 
(11) The Government of China continues to 
heavily subsidize its manufacturing sector through 
tax incentives, preferential access to credit and cap-
ital, subsidized utilities, and other measures. 
(12) Since 1994, China has kept its currency 
pegged at approximately 8.3 renminbi to the United 
States dollar, which has caused the renminbi to be-
come undervalued against the dollar by as much as 
40 percent, harming exports of United States goods 
and services to China and providing an unfair ad-
vantage to Chinese exports to the United States. 
(13) Current policies of the United States have 
failed to advance and protect the interests of Amer-
ican workers, farmers, and businesses in the United 
States-China trade relationship, failed to address ef-
fectively China’s unfair trade practices and market 
access barriers to goods and services and its poor 
record at protecting intellectual property rights, and 
failed to stem or reverse the unsustainable United 
States trade deficit with China. 
(14) It is critical that the United States develop 
and implement a comprehensive and coherent set of 
policies to address China’s unfair trading practices 
and failure to abide by its commitments as a mem-
ber of the World Trade Organization. 
SEC. 3. APPLICATION OF COUNTERVAILING DUTIES TO 
NONMARKET ECONOMY COUNTRIES. 
(a) IN GENERAL.—Section 701(a)(1) of the Tariff 
Act of 1930 (19 U.S.C. 1671(a)(1)) is amended by insert-
ing ‘‘(including a nonmarket economy country)’’ after 
‘‘country’’ each place it appears. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) apply to petitions filed under section 702 
of the Tariff Act of 1930 on or after the date of the enact-
ment of this Act. 
(c) ANTIDUMPING PROVISIONS
NOT AFFECTED.—
The amendments made by subsection (a) shall not affect 
the status of a country as a nonmarket economy country
for purposes of any matter relating to antidumping duties 
under the Tariff Act of 1930. 
SEC. 4. TREATMENT OF CURRENCY MANIPULATION. 
(a) DEFINITION OF UNJUSTIFIABLE ACTS, POLICIES, 
AND PRACTICES.—Section 301(d)(4)(B) of the Trade Act 
of 1974 (19 U.S.C. 2411(d)(4)(B)) is amended to read 
as follows: 
‘‘(B)(i) Acts, policies, and practices that are un-
justifiable include, but are not limited to, any act, 
policy, or practice described in subparagraph (A) 
which involves currency manipulation, or denies na-
tional or most-favored nation treatment or the right 
of establishment or protection of intellectual prop-
erty rights. 
‘‘(ii) In this subparagraph, the term ‘currency 
manipulation’ means the protracted large-scale inter-
vention by an authority to undervalue its currency in 
the exchange market that prevents effective balance 
of payments adjustment or gains an unfair competi-
tive advantage over the United States.’’. 
(b) INVESTIGATION INTO CURRENCY MANIPULATION 
BY THE PEOPLE’S REPUBLIC OF CHINA.—
(1) INVESTIGATION, 
DETERMINATIONS, 
AC-
TIONS.—The United States Trade Representative 
shall—
(A) conduct an investigation, under sec-
tions 302 and 303 of the Trade Act of 1974, 
of the currency practices of the People’s Repub-
lic of China; 
(B) make the applicable determinations 
under section 304 of that Act pursuant to that 
investigation; and 
(C) implement any action, under section 
305 of that Act, in accordance with such deter-
minations. 
(2) 
INITIATION
OF
INVESTIGATION.—The 
United States Trade Representative shall initiate the 
investigation required by paragraph (1) not later 
than 90 days after the date of the enactment of this 
Act. 
SEC. 5. CLARIFICATION OF STANDARD FOR PRESIDENTIAL 
ACTION ON ITC FINDING OF MARKET DISRUP-
TION. 
(a) AMENDMENTS TO STANDARD FOR TRADE REP-
RESENTATIVE’S
RECOMMENDATION
TO
THE
PRESI-
DENT.—Section 421(h)(2) of the Trade Act of 1974 (19 
U.S.C. 2451(h)(2)) is amended—
(1) by striking ‘‘(2) Within’’ and inserting 
‘‘(2)(A) Within’’; and 
(2) by adding at the end the following: