I 111th CONGRESS 2d Session H. R. 6071 IN THE HOUSE OF REPRESENTATIVES July 30, 2010 Mr. Sherman (for himself, Ms. Ros-Lehtinen, Mr. Kagen, Mr. Jones, Ms. Shea-Porter, Mr. Patrick J. Murphy of Pennsylvania, and Mr. DeFazio) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To withdraw normal trade relations treatment from the products of the People’s Republic of China, to provide for a balanced trade relationship between that country and the United States, and for other purposes.

1.

Short title

This Act may be cited as the Emergency China Trade Act of 2010.

2.

Findings

Congress makes the following findings: (1)The United States and the People’s Republic of China are among the world’s largest economies and are among the world’s largest producers and consumers of goods. (2)The Government of the People’s Republic of China has pursued an international trade policy that violates its obligations as a member of the World Trade Organization and other international organizations, which has resulted in a perpetual, historically high trade imbalance with the United States that threatens the stability of the global economy. (3)As members 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 to eliminate all subsidies for exports and to facilitate international trade. The People’s Republic of China has failed to do so. (4)The Chinese Government continues to maintain control over the decisions of Chinese enterprises through ownership, board membership, and coercion. (5)The Chinese Government, directly and indirectly, facilitates unfair requirements for coproduction agreements between United States companies and Chinese entities. (6)Since 1994, the People’s Republic of China has repeatedly intervened in currency markets and taken measures that have significantly misaligned the value of its currency against the United States dollar and other currencies. This policy by the People’s Republic of China has resulted in substantial undervaluation of the renminbi by up to 40 percent or more.

3.

Sense of Congress

It is the sense of Congress that— (1)a persistent trade deficit with the People’s Republic of China is harmful to the long-term health of the United States economy and must be corrected; and (2)the President should begin immediate, expedited negotiations with the People’s Republic of China that are designed to eliminate the trade deficit within 4 years.

4.

Withdrawal of normal trade relations treatment from the People’s Republic of China

Notwithstanding the provisions of title I of Public Law 106–286, title IV of the Trade Act of 1974, or any other provision of law, upon the expiration of the 6-month period beginning on the date of the enactment of this Act— (1)normal trade relations treatment shall not apply to the products of the People’s Republic of China, and normal trade relations treatment may not thereafter be extended to the products of that country; and (2)the column 2 rate of duty under the Harmonized Tariff Schedule of the United States shall apply to the products of the People’s Republic of China.

5.

Balanced trade relations with the People’s Republic of China

(a)

In general

The President shall, upon the enactment of this Act, take the necessary steps to negotiate a trade relationship with the People’s Republic of China that will achieve and maintain balanced trade between the United States and the People’s Republic of China within four years after the date of the enactment of this Act. (b)

Submission of implementing legislation

(1)

In general

Upon conclusion of the negotiations specified in subsection (a), the President shall submit implementing legislation to Congress. (2)

Implementing legislation

For purposes of this section, the term implementing legislation means legislation that only contains provisions that are necessary to carry out any agreements negotiated under subsection (a). (3)

Expedited consideration

(A)

In the house of representatives

For the purpose of expediting the consideration and enactment of implementing legislation submitted under paragraph (1), a motion to proceed to the consideration of such implementing legislation after it has been reported by the appropriate committee shall be treated as highly privileged in the House of Representatives. (B)

In the senate

Implementing legislation submitted under paragraph (1) shall be considered in the Senate in accordance with the provisions of section 601(b) of the International Security Assistance and Arms Export Control Act of 1976. (c)

Effect of enactment of implementing legislation

Upon the enactment of implementing legislation under this section, section 4 shall cease to be effective.

6.

Definitions

In this Act, the term balanced trade means a balance of trade between the United States and the People’s Republic of China that ensures the value of United States goods exported from the United States, on a balance of payment basis, is equal in value to goods imported from the People’s Republic of China, on a balance of payment basis.