[Congressional Record Volume 149, Number 134 (Friday, September 26, 2003)]
[Senate]
[Page S12095]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




ENCOURAGING THE PEOPLE'S REPUBLIC OF CHINA TO ESTABLISH A MARKET-BASED 
                         VALUATION OF THE YUAN

  Mr. FRIST. Mr. President, I ask unanimous consent that the Finance 
Committee be discharged from further action on S. Res. 219, and the 
Senate proceed to its immediate consideration.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The clerk will report the resolution by title.
  The assistant legislative clerk read as follows:

       The resolution (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.

  There being no objection, the Senate proceeded to consider the 
resolution.
  Mr. FRIST. Mr. President, I ask unanimous consent that the resolution 
be agreed to, the amendment to the preamble be agreed to, the preamble, 
as amended, be agreed to, the motion to reconsider be laid upon the 
table and that any statements regarding this matter be printed in the 
Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The resolution (S. Res. 219) was agreed to.
  The amendment (No. 1789) to the preamble was agreed to, as follows:


                           AMENDMENT NO. 1789

                (Purpose: To make clarifying amendments)

       Strike the fourth clause of the preamble.
       In the seventh clause of the preamble, strike ``free 
     fluctuation'' and insert ``market-based valuation''.

  The preamble, as amended, was agreed to.
  The resolution, with its preamble, reads as follows:

                              S. Res. 219

       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.

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