[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. Res. 219 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
S. RES. 219

To encourage the People's Republic of China to establish a market-based 
      valuation of the yuan and to fulfill its commitments under 
                    international trade agreements.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 9, 2003

Mr. Graham of South Carolina (for himself, Mr. Schumer, Mr. Voinovich, 
Mr. Chambliss, Mr. Lieberman, Mr. Allen, Mr. Specter, Mr. Enzi, and Mr. 
  Kyl) submitted the following resolution; which was referred to the 
                     Committee on Foreign Relations

_______________________________________________________________________

                               RESOLUTION


 
To encourage the People's Republic of China to establish a market-based 
      valuation of the yuan and to fulfill its commitments under 
                    international trade agreements.

Whereas the currency of the People's Republic of China, the yuan or renminbi, 
        has been tightly pegged to the United States dollar at the same fixed 
        level since 1994;
Whereas the undervaluation of China's currency makes exports from China less 
        expensive for foreigners and makes foreign products more expensive for 
        Chinese consumers, an effective subsidization of China's exports and a 
        virtual tariff on foreign imports;
Whereas the Government of the People's Republic of China has significantly 
        intervened in its foreign exchange markets in order to hold the value of 
        the yuan within its tight and artificial trading band, resulting in 
        enormous growth in China's dollar reserves, estimated to be over 
        $345,000,000,000 as of June 2003;
Whereas the practice of ``currency manipulation'' to gain a trade or competitive 
        advantage is a violation of the spirit and letter of the World Trade 
        Organization and International Monetary Fund agreements, of which the 
        People's Republic of China is now party;
Whereas the undervaluation of China's currency has had and continues to have a 
        negative impact on the United States manufacturing sector, contributing 
        to significant job losses and business closures;
Whereas the undervaluation of China's currency also has had and continues to 
        have a negative impact on the economies of its neighbor nations, the 
        European Community, Mexico, and Latin America;
Whereas the free fluctuation of currencies is a key component to the health of 
        global trade, and the stability of the world economy; and
Whereas China's central bank governor has stated that the value of the yuan will 
        eventually be determined by market forces rather than pegged firmly to 
        the dollar: Now, therefore, be it
    Resolved, That the Senate of the United States--
            (1) supports the Secretary of the Treasury's work with 
        regard to the Secretary's discussions with the Government of 
        the People's Republic of China leading to a market-based 
        valuation of the yuan; and
            (2) encourages the People's Republic of China to continue 
        to act on its commitments to the trade rules and principles of 
        the international community of which it is now a member.
                                 <all>