[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1034 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                S. 1034

 To provide that the President may not extend to the People's Republic 
 of China renewal of nondiscriminatory (most-favored-nation) treatment 
   beginning July 3, 1994, unless the President determines that the 
People's Republic of China is not manipulating its currency to prevent 
    effective balance of payments adjustments or to gain an unfair 
                    competitive advantage in trade.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                May 26 (legislative day, April 19), 1993

  Mr. Riegle introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To provide that the President may not extend to the People's Republic 
 of China renewal of nondiscriminatory (most-favored-nation) treatment 
   beginning July 3, 1994, unless the President determines that the 
People's Republic of China is not manipulating its currency to prevent 
    effective balance of payments adjustments or to gain an unfair 
                    competitive advantage in trade.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. LIMITATION ON EXTENSION OF RENEWAL OF MOST-FAVORED-NATION 
              STATUS TO THE PEOPLE'S REPUBLIC OF CHINA.

    (a) Findings.--The Congress finds that--
            (1) section 3004 of the Exchange Rates and International 
        Economic Policy Coordination Act of 1988 (22 U.S.C. 5304) 
        directed the Secretary of the Treasury to analyze on an annual 
        basis the exchange rate policies of foreign countries to 
        determine whether they are manipulating their currency to 
        prevent effective balance of payments adjustments or to gain an 
        unfair competitive advantage in trade;
            (2) the Secretary of the Treasury is required under section 
        3005 of such Act (22 U.S.C. 5305) to submit annual reports 
        (with semi-annual updates) on international economic policy, 
        including exchange rate policy;
            (3) the Secretary of the Treasury, in reports submitted to 
        the Congress in May 1992, December 1992, and May 1993, has 
        determined that the People's Republic of China is manipulating 
        its exchange rate in violation of such section 3004;
            (4) the Secretary of the Treasury in the report of May 1993 
        has determined that the bilateral trade surplus of the People's 
        Republic of China with the United States continues to grow at a 
        rapid pace and has increased from $10,000,000,000 in 1990 to 
        $13,000,000,000 in 1991 to $18,000,000,000 in 1992, and could 
        increase to over $20,000,000,000 in 1993; and
            (5) the Secretary of the Treasury has engaged in 
        unsuccessful negotiations to get the People's Republic of China 
        to stop the manipulation of its exchange rate.
    (b) Limitation on Waiver.--
            (1) In general.--Notwithstanding any other provision of 
        law, the President may not recommend continuation of a waiver 
        for the 12-month period beginning July 3, 1994, under section 
        402(d) of the Trade Act of 1974 for the People's Republic of 
        China, unless the President reports in the document required to 
        be submitted by that section that the President has made the 
        determination described in paragraph (2).
            (2) Determination.--The determination described in this 
        paragraph is a determination by the President, based on the 
        analyses and reports of the Secretary of the Treasury conducted 
        pursuant to sections 3004 and 3005 of the Exchange Rates and 
        International Economic Policy Coordination Act of 1988 (22 
        U.S.C. 5304 and 5305), that the Government of the People's 
        Republic of China has ceased manipulating the rate of exchange 
        between its currency and the United States dollar for the 
        purpose of preventing effective balance of payment adjustments 
        or gaining an unfair competitive advantage in its trade with 
        the United States.

                                 <all>