[Congressional Record Volume 151, Number 91 (Friday, July 1, 2005)]
[Extensions of Remarks]
[Page E1439]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        INTRODUCTION OF A CONCURRENT RESOLUTION CONCERNING CHINA

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                         HON. CHARLES B. RANGEL

                              of new york

                    in the house of representatives

                        Thursday, June 30, 2005

  Mr. RANGEL. Mr. Speaker, today my colleague from Connecticut, Mrs. 
Johnson, and I are introducing a concurrent resolution calling upon the 
Bush Administration to urge the Government of China to refrain from 
adopting new regulations that would make it nearly impossible for U.S. 
software companies to sell their products to the Chinese government. 
The resolution also calls upon the Administration to urge China to join 
the World Trade Organization (WTO) Agreement on Government Procurement, 
as China committed to do when it joined the WTO in 2001.
  The regulations that China has proposed would require U.S. software 
companies to manufacture all of their products in China, register their 
copyrights first in China and perform at least 50 percent of their 
development in China. Perhaps the most disturbing aspect of the 
proposed rules is a requirement that American companies outsource a 
specific percentage of their work to China.
  To be honest, I am amazed that China would propose these rules at a 
time when American companies already are facing significant impediments 
to doing business in China. Piracy rates of intellectual property--
including software--in China remain as high as 90 percent. In addition, 
China continues to provide subsidies to its manufacturers, and 
manipulate its currency--despite calls from international institutions 
and governments around the world to stop this practice. These unfair 
trade barriers contributed to a record $162 billion trade deficit with 
China in 2004. That deficit is on track to top $170 billion this year.
  Mr. Speaker, I am pleased that Ambassador Portman, our U.S. Trade 
Representative, and Commerce Secretary Gutierrez are scheduled to 
travel to Beijing on July 11, to meet with Chinese officials at the 
annual U.S.-China Joint Commission on Commerce and Trade. I urge 
Ambassador Portman and Secretary Gutierrez to press upon the Chinese 
that the proposed software procurement rules are unacceptable. Further, 
it must be made clear that the U.S. Congress is growing increasingly 
frustrated that China is not living up to the obligations that the 
country agreed upon when acceding to the WTO in 2001. As a supporter of 
the legislation granting Permanent Normal Trade Relations status to 
China, I am particularly disappointed by its failure to comply with its 
obligations.
  One of the commitments China made in 2001 was to join the WTO 
Government Procurement Agreement ``as soon as possible.'' Three years 
later, China has yet to begin the process of acceding to this 
agreement. Its participation in this agreement is essential, as the GPA 
requires countries to ensure that their procurement processes are 
transparent and do not unfairly discriminate between domestic and 
foreign companies.
  I urge my colleagues to support this resolution.

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