II 110th CONGRESS 2d Session S. 2813 IN THE SENATE OF THE UNITED STATES April 3, 2008 Mr. Bunning (for himself, Ms. Stabenow, and Mr. Bayh) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To require the Secretary of the Treasury to take action with respect to currency manipulation by the People's Republic of China and for other purposes.

1.

Short title

This Act may be cited as the China Currency Manipulation Act of 2008.

2.

Findings

Congress makes the following findings: (1)The People's Republic of China has a material global current account surplus. (2)The People's Republic of China has, since the beginning of 2000, accumulated a current account surplus with the United States of nearly $1,200,000,000,000, more than twice the size of the cumulative current account surplus of any other United States trading partner during the same period. (3)The People's Republic of China has engaged in protracted large-scale intervention in currency markets, thereby subsidizing Chinese-made products and erecting a formidable nontariff barrier to trade for United States exports to the People's Republic of China, in contravention of the spirit and intent of the General Agreement on Tariffs and Trade and the Articles of Agreement of the International Monetary Fund.

3.

Action to achieve fair currency

(a)

Determination

Notwithstanding any other provision of law, the Secretary of the Treasury shall— (1)make an affirmative determination that the People's Republic of China is manipulating the rate of exchange between its currency and the United States dollar within the meaning of section 3004(b) of the Exchange Rates and International Economic Policies Coordination Act of 1988 (22 U.S.C. 5304(b)); and (2)take the action described in subsections (b), (c), and (d) of this section. (b)

Action

(1)

In general

The Secretary of the Treasury shall, not later than 30 days after the date of the enactment of this Act, establish a plan of action to remedy currency manipulation by the People's Republic of China, and submit a report regarding that plan, to the Committee on Banking, Housing, and Urban Affairs and the Committee on Finance of the Senate and the Committee on Financial Services and the Committee on Ways and Means of the House of Representatives. (2)

Benchmarks

The report described in paragraph (1) shall include specific benchmarks and timeframes for correcting the currency manipulation. (c)

Initial negotiations

The Secretary shall initiate, on an expedited basis, bilateral negotiations with the People's Republic of China for the purpose of ensuring that the country regularly and promptly adjusts the rate of exchange between its currency and the United States dollar to permit effective balance of payment adjustments and to eliminate the unfair competitive advantage. (d)

Coordination with the international monetary fund

The Secretary of the Treasury shall, not later than 30 days after the date of the enactment of this Act, instruct the Executive Director to the International Monetary Fund to use the voice and vote of the United States, including requesting consultations under Article IV of the Articles of Agreement of the International Monetary Fund, for the purpose of ensuring the People's Republic of China regularly and promptly adjusts the rate of exchange between its currency and the United States dollar to permit effective balance of payments adjustments and to eliminate the unfair competitive advantage in trade.