Definition: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Input: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Chinese Currency Act of 2005''.

SEC. 2. FINDINGS.

Congress makes the following findings:
(1) The economy and national security of the United States
are critically dependent upon a vibrant manufacturing base.
(2) The good health of the United States manufacturing
industry requires, among other things, unfettered access to
open markets abroad and fairly traded raw materials and
products in accord with the international legal principles and
agreements of the World Trade Organization and the
International Monetary Fund.
(3) Since 1994, the People's Republic of China has
aggressively intervened in currency markets to peg the Chinese
currency, known as the renminbi or yuan, at a fixed rate of
approximately 8.28 yuan to the United States dollar.
(4) Economists generally agree that this policy by the
People's Republic of China has resulted in substantial
undervaluation of the renminbi, perhaps by 40 percent or more.
(5) Evidence of this undervaluation can be found in the
large and growing annual trade surpluses of the People's
Republic of China, foreign-direct investment in China, and
rapidly increasing aggregate amount of foreign-currency
reserves.
(6) The renminbi's undervaluation acts as both a subsidy
for exports from the People's Republic of China and a non-
tariff barrier against imports into China, to the serious
detriment of the United States manufacturing industry.
(7)(A) As a member of both the World Trade Organization and
the International Monetary Fund, the People's Republic of China
has assumed a series of international legal obligations that
proscribe subsidization of exports and exchange-rate
manipulation.
(B) These prohibitions are most prominently set forth in
Articles VI, XV, and XVI of the GATT 1994 (as defined in
section 2(1)(B) of the Uruguay Round Agreements Act (19 U.S.C.
3501(1)(B)), in the Agreement on Subsidies and Countervailing
Measures (as defined in section 101(d)(12) of the Uruguay Round
Agreements Act (19 U.S.C. 3511(d)(12)), and in Articles IV and
VIII of the International Monetary Fund's Articles of
Agreement.
(8) In addition, as a further condition of its accession
agreement to become a member of the World Trade Organization on
December 11, 2001, the People's Republic of China agreed to a
transitional product-specific safeguard mechanism to address
market disruption to an importing member's domestic industry
due to increased imports of products of Chinese origin.
(9) Despite its international legal obligations, and
notwithstanding extended and ongoing negotiations with the
United States, the People's Republic of China has given no
indication of any intent to correct the renminbi's
undervaluation in the foreseeable future.
(10) Under the foregoing circumstances, it is consistent
with the international legal obligations of the People's
Republic of China and with the corresponding international
legal rights of the United States to amend relevant United
States trade laws to make explicit that exchange-rate
manipulation is actionable as either or both a countervailable
export subsidy and as a cause of present or threatened market
disruption to United States domestic producers.

SEC. 3. CLARIFICATION TO INCLUDE EXCHANGE-RATE MANIPULATION AS
COUNTERVAILABLE SUBSIDY UNDER TITLE VII OF THE TARIFF ACT
OF 1930.

(a) Amendments to Definition of Countervailable Subsidy.--
(1) Financial contribution.--Section 771(5)(D) of the
Tariff Act of 1930 (19 U.S.C. 1677(5)(D)) is amended--
(A) by striking ''The term'' and inserting ''(i)
The term'';
(B) by redesignating clauses (i) through (iv) as
subclauses (I) through (IV), respectively; and
(C) by adding at the end the following:
''(ii) In addition to clause (i), the term
'provides a financial contribution' means to engage in
exchange-rate manipulation (as defined in paragraph
(5C)).''.
(2) Benefit conferred.--Section 771(5)(E) of the Tariff Act
of 1930 (19 U.S.C. 1677(5)(E)) is amended--
(A) in clause (iii), by striking '', and'' and
inserting a comma;
(B) in clause (iv), by striking the period at the
end and inserting '', and''; and
(C) by adding at the end the following new clause:
''(v) in the case of exchange-rate
manipulation (as defined in paragraph (5C)), if
the price of exported goods is less than what
the price of such goods would be absent the
exchange-rate manipulation.''.
(3) Specificity.--Section 771(5A)(B) of the Tariff Act of
1930 (19 U.S.C. 1677(5A)(B)) is amended by adding at the end
before the period the following: '', such as exchange-rate
manipulation (as defined in paragraph (5C))''.
(b) Definition of Exchange-Rate Manipulation.--Section 771 of the
Tariff Act of 1930 (19 U.S.C. 1677) is amended by inserting after
paragraph (5B) the following new paragraph:
''(5C) Definition of exchange-rate manipulation.--
''(A) In general.--For purposes of paragraphs (5)
and (5A), the term 'exchange-rate manipulation' means
protracted large-scale intervention by an authority to
undervalue its currency in the exchange market that
prevents effective balance-of-payments adjustment or
that gains an unfair competitive advantage over any
other country.
''(B) Factors.--In determining whether exchange-
rate manipulation is occurring and a benefit thereby
conferred, the administering authority in each case--
''(i) shall consider the exporting
country's--
''(I) bilateral balance-of-trade
surplus or deficit with the United
States;
''(II) balance-of-trade surplus or
deficit with its other trading partners
individually and in the aggregate;
''(III) foreign direct investment
in its territory;
''(IV) currency-specific and
aggregate amounts of foreign currency
reserves; and
''(V) mechanisms employed to
maintain its currency at a fixed
exchange rate relative to another
currency and, particularly, the nature,
duration, and monetary expenditures of
those mechanisms;
''(ii) may consider such other economic
factors as are relevant; and
''(iii) shall measure the trade surpluses
or deficits described in subclauses (I) and
(II) of clause (i) with reference to the trade
data reported by the United States and the
other trading partners of the exporting
country, unless such trade data are not
available or are demonstrably inaccurate, in
which case the exporting country's trade data
may be relied upon if shown to be sufficiently
accurate and trustworthy.
''(C) Type of economy.--An authority found to be
engaged in exchange-rate manipulation may have either a
market economy or a nonmarket economy or a combination
thereof.''.
(c) Effective Date.--The amendments made by this section apply with
respect to a countervailing duty investigation initiated under subtitle
A of title VII of the Tariff Act of 1930 before, on, or after the date
of the enactment of this Act.

SEC. 4. CLARIFICATION TO INCLUDE EXCHANGE-RATE MANIPULATION BY THE
PEOPLE'S REPUBLIC OF CHINA AS MARKET DISRUPTION UNDER
CHAPTER 2 OF TITLE IV OF THE TRADE ACT OF 1974.

(a) Market Disruption.--
(1) In general.--Section 421(c) of the Trade Act of 1974
(19 U.S.C. 2451(c)) is amended by adding at the end the
following new paragraph:
''(3) For purposes of this section, the term 'under such
conditions' includes, but is not limited to, by reason of exchange-rate
manipulation (as defined in paragraph (4)).''.
(2) Definition of exchange-rate manipulation.--Section
421(c) of the Trade Act of 1974 (19 U.S.C. 2451(c)), as amended
by paragraph (1), is further amended by adding at the end the
following new paragraph:
''(4)(A) For purposes of this section, the term 'exchange-rate
manipulation' means protracted large-scale intervention by the
Government of the People's Republic of China or any other public entity
within the territory of the People's Republic of China to undervalue
its currency in the exchange market that prevents effective balance-of-
payments adjustment or that gains an unfair competitive advantage over
the United States.
''(B) In determining whether exchange-rate manipulation is
occurring, the Commission in each case--
''(i) shall consider China's--
''(I) bilateral balance-of-trade surplus or deficit
with the United States;
''(II) balance-of-trade surplus or deficit with its
other trading partners individually and in the
aggregate;
''(III) foreign direct investment in its territory;
''(IV) currency-specific and aggregate amounts of
foreign currency reserves; and
''(V) mechanisms employed to maintain its currency
at a fixed exchange rate relative to another currency
and, particularly, the nature, duration, and monetary
expenditures of those mechanisms;
''(ii) may consider such other economic factors as are
relevant; and
''(iii) shall measure the trade surpluses or deficits
described in subclauses (I) and (II) of clause (i) with
reference to the trade data reported by the United States and
the other trading partners of China, unless such trade data are
not available or are demonstrably inaccurate, in which case
China's trade data may be relied upon if shown to be
sufficiently accurate and trustworthy.''.
(b) Critical Circumstances.--Section 421(i)(1) of the Trade Act of
1974 (19 U.S.C. 2451(i)(1)) is amended--
(1) in subparagraph (A), by striking ''and'' at the end;
(2) in subparagraph (B), by striking the period at the end
and inserting ''; and''; and
(3) by inserting after subparagraph (B) the following new
subparagraph:
''(C) in those instances in which the petition alleges and
reasonably documents that exchange-rate manipulation is
occurring, shall consider that factor as weighing in favor of
affirmative findings under subparagraphs (A) and (B).''.
(c) Standard for Presidential Action.--Section 421(k)(2) of the
Trade Act of 1974 (19 U.S.C. 2451(k)(2)) is amended by adding at the
end the following new sentence: ''In those instances in which the
Commission has made an affirmative determination that exchange-rate
manipulation is occurring, the President shall consider that factor as
weighing in favor of providing import relief in accordance with
subsection (a).''.
(d) Modifications of Relief.--Section 421(n)(2) of the Trade Act of
1974 (19 U.S.C. 2451(n)(2)) is amended by adding at the end the
following new sentence: ''In those instances in which the Commission
has made an affirmative determination that exchange-rate manipulation
is occurring, the Commission and the President shall consider that
factor as weighing in favor of finding that continuation of relief is
necessary to prevent or remedy the market disruption at issue.''.
(e) Extension of Action.--Section 421(o) of the Trade Act of 1974
(19 U.S.C. 2451(o)) is amended--
(1) in paragraph (1), by adding at the end the following
new sentence: ''In those instances in which the Commission has
made an affirmative determination that exchange-rate
manipulation is occurring, the Commission shall consider that
factor as weighing in favor of finding that an extension of the
period of relief is necessary to prevent or remedy the market
disruption at issue.''; and
(2) in paragraph (4), by adding at the end the following
new sentence: ''In those instances in which the Commission has
made an affirmative determination that exchange-rate
manipulation is occurring, the President shall consider that
factor as weighing in favor of finding that an extension of the
period of relief is necessary to prevent or remedy the market
disruption at issue.''.
(f) Effective Date.--The amendments made by this section apply with
respect to an investigation initiated under chapter 2 of title IV of
the Trade Act of 1974 before, on, or after the date of the enactment of
this Act.

SEC. 5. PROHIBITION ON PROCUREMENT BY THE DEPARTMENT OF DEFENSE OF
CERTAIN DEFENSE ARTICLES IMPORTED FROM THE PEOPLE'S
REPUBLIC OF CHINA.

(a) Copy of Petition, Request, or Resolution to Be Transmitted to
the Secretary of Defense.--Section 421(b)(4) of the Trade Act of 1974
(19 U.S.C. 2451(b)(4)) is amended by inserting '', the Secretary of
Defense'' after '', the Trade Representative''.
(b) Determination of Secretary of Defense.--Section 421(b) of the
Trade Act of 1974 (19 U.S.C. 2451(b)) is amended by adding at the end
the following new paragraph:
''(6) Not later than 15 days after the date on which an
investigation is initiated under this subsection, the Secretary of
Defense shall submit to the Commission a report in writing which
contains the determination of the Secretary as to whether or not the
articles of the People's Republic of China that are the subject of the
investigation are like or directly competitive with articles produced
by a domestic industry that are critical to the defense industrial base
of the United States.''.
(c) Prohibition on Procurement by the Department of Defense of
Certain Defense Articles.--
(1) Prohibition.--If the United States International Trade
Commission makes an affirmative determination under section
421(b) of the Trade Act of 1974 (19 U.S.C. 2451(b)), or a
determination which the President or the United States Trade
Representative may consider as affirmative under section 421(e)
of such Act (19 U.S.C. 2451(e)), with respect to articles of
the People's Republic of China that the Secretary of Defense
has determined are like or directly competitive with articles
produced by a domestic industry that are critical to the
defense industrial base of the United States, the Secretary of
Defense may not procure, directly or indirectly, such products
of the People's Republic of China.
(2) Waiver.--The President may waive the application of the
prohibition contained in paragraph (1) on a case-by-case basis
if the President determines and certifies to Congress that it
is in the national security interests of the United States to
do so.
Output:
Chinese Currency Act of 2005 - Amends the Tariff Act of 1930 regarding countervailing duty investigations to revise the definition of countervailable subsidy to include exchange-rate manipulation.

Defines "exchange-rate manipulation" as protracted large-scale intervention by an authority to undervalue its currency in the exchange market that prevents effective balance-of-payments adjustment or that gains an unfair competitive advantage over any other country.

Specifies factors for determining whether exchange-rate manipulation is occurring and a benefit thereby conferred.

Applies the definition of "exchange-rate manipulation" to the Government of the People's Republic of China (PRC) or any other public entity within its territory.

Specifies: (1) factors for determining whether exchange-rate manipulation is occurring in the PRC; (2) actions to be taken, if a petition for an investigation alleges and reasonably documents that it is occurring; and (3) the standard for presidential action to prevent or remedy the market disruption at issue (including import relief and its modification and extension).

Directs the Secretary of Defense, upon proper request or resolution, to report to the U.S. International Trade Commission any determination as to whether or not the articles of the PRC that are the subject of the investigation are like or directly competitive with domestically produced articles critical to the U.S. defense industrial base.

Prohibits the Secretary from procuring, directly or indirectly, such products if the Commission or the President or the U.S. Trade Representative makes an affirmative determination that the Secretary's determination is accurate.

Provides for presidential waiver of the prohibition in the national security interests of the United States.