IV 
109TH CONGRESS 
1ST SESSION 
H. CON. RES. 33
Urging the President take immediate steps to establish a plan to adopt 
the recommendations of the United States-China Economic and Security 
Review Commission in its 2004 Report to the Congress in order to 
correct the current imbalance in the bilateral trade and economic rela-
tionship between the United States and the People’s Republic of China. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 26, 2005
Mr. RYAN of Ohio submitted the following concurrent resolution; which was 
referred to the Committee on Ways and Means 
CONCURRENT RESOLUTION 
Urging the President take immediate steps to establish a 
plan to adopt the recommendations of the United States-
China Economic and Security Review Commission in its 
2004 Report to the Congress in order to correct the 
current imbalance in the bilateral trade and economic 
relationship between the United States and the People’s 
Republic of China.
Whereas the bilateral trade and economic relationship be-
tween the United States and the People’s Republic of 
China is heavily imbalanced and undermining the long-
term economic health of the United States; 
Whereas the 2004 Report to the Congress of the United 
States-China Economic and Security Review Commission
•HCON 33 IH 
states that in 2003 the United States trade deficit in 
goods with China reached $124,000,000,000, with Chi-
nese imports to the United States outnumbering United 
States exports to China by more than five to one; 
Whereas the Commission’s 2004 Report makes several rec-
ommendations to correct this imbalance in the bilateral 
trade and economic relationship between the United 
States and China; 
Whereas the Commission’s 2004 Report also finds that the 
Government of China has not satisfactorily adhered to 
the commitments it made in order to accede to member-
ship into the World Trade Organization (WTO) and has 
failed to carry out many of the significant market-open-
ing reforms it promised; 
Whereas the Commission’s 2004 Report further states that 
‘‘a key contributing factor to the [United States trade] 
deficit is the undervaluation of the Chinese yuan against 
the U.S. dollar’’ and that the Government of China con-
tinues to heavily subsidize its manufacturing sector 
through such means as tax incentives, preferential access 
to credit and capital from state-owned financial institu-
tions, subsidized utilities, and other measures; 
Whereas the large and rapidly expanding United States trade 
deficit in goods with China is contributing to the erosion 
of the United States manufacturing sector; and 
Whereas this imbalance in the bilateral trade and economic 
relationship between the United States and China has 
negative implications for the national security of the 
United States: Now, therefore, be it
Resolved by the House of Representatives (the Senate 
concurring),
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SECTION 1. SHORT TITLE. 
This concurrent resolution may be cited as the 
‘‘China Trade Enforcement Resolution’’. 
SEC. 2. ESTABLISHMENT OF PLAN TO IMPLEMENT REC-
OMMENDATIONS OF THE UNITED STATES-
CHINA ECONOMIC AND SECURITY REVIEW 
COMMISSION. 
(a) PLAN.—The President is strongly urged to take 
immediate steps to establish a plan to implement the rec-
ommendations contained in the 2004 Report to the Con-
gress of the United States-China Economic and Security 
Review Commission in order to correct the current imbal-
ance in the bilateral trade and economic relationship be-
tween the United States and the People’s Republic of 
China. 
(b) CONTENTS.—Such plan should contain the fol-
lowing: 
(1) Actions to address China’s policy of under-
valuing its currency, to encourage China to provide 
for a substantial upward revaluation of the Chinese 
yuan against the United States dollar and to re-peg 
the yuan to a trade-weighted basket of currencies, 
and to concurrently encourage United States trading 
partners with similar interests to join in these ef-
forts.
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(2) Actions to make more use of the World 
Trade Organization (WTO) dispute settlement 
mechanism and applicable United States trade laws 
to redress unfair Chinese trade practices, including 
China’s exchange rate manipulation, denial of trad-
ing and distribution rights, lack of intellectual prop-
erty rights protection, objectionable labor standards, 
subsidies to export industries, forced technology 
transfers used as a condition of doing business, and 
using the United States Trade Representative to 
consult with trading partners who have mutual in-
terests at the outset of each new trade dispute with 
China. 
(3) Actions by the United States Trade Rep-
resentative and other appropriate United States 
Government officials to ensure that the World Trade 
Organization’s Transitional Review Mechanism proc-
ess is a meaningful multilateral review that meas-
ures China’s compliance with its WTO commitments 
and to work with the European Union, Japan, and 
other major trading partners to produce a separate, 
unified annual report that measures and reports on 
China’s progress toward compliance and coordinates 
a plan of action to address China’s shortcomings.
•HCON 33 IH 
(4)(A) Actions to address the governance and 
security concerns relating to China’s outreach to the 
global capital markets, including the need for the 
United States Trade Representative and the Depart-
ment of Commerce to undertake immediately a com-
prehensive investigation of China’s system of govern-
ment subsidies for manufacturing, including tax in-
centives, preferential access to credit and capital 
from state-owned financial institutions, subsidized 
utilities, investment conditions requiring technology 
transfers, discriminatory consumption credits that 
shift demand toward Chinese goods, Chinese state-
owned banks’ practice of noncommercial-based policy 
lending to state-owned and other enterprises, and 
China’s dual pricing system for coal and other en-
ergy sources. 
(B) A report to be submitted to Congress by 
the Department of Commerce not later than 90 days 
after the date of the adoption of this concurrent res-
olution that (i) will contain the results of the actions 
described in subparagraph (A), (ii) will assess 
whether any of China’s practices described in such 
subparagraph may be actionable subsidies under the 
World Trade Organization, and (iii) will describe