[Congressional Record Volume 170, Number 5 (Wednesday, January 10, 2024)]
[House]
[Pages H35-H37]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              CHINA EXCHANGE RATE TRANSPARENCY ACT OF 2023

  Mr. McHENRY. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 839) to require the United States Executive Director at the 
International Monetary Fund to advocate for increased transparency with 
respect to exchange rate policies of the People's Republic of China, 
and for other purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                                H.R. 839

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``China Exchange Rate 
     Transparency Act of 2023''.

     SEC. 2. FINDINGS.

       The Congress finds as follows:
       (1) Under Article IV of the Articles of Agreement of the 
     International Monetary Fund (IMF), the People's Republic of 
     China has committed to orderly exchange rate arrangements, 
     the avoidance of exchange rate manipulation, and cooperation 
     with the IMF to ensure ``firm surveillance'' of the exchange 
     rate policies of the People's Republic of China. Pursuant to 
     Article VIII of the Articles of Agreement of the IMF, the IMF 
     may require the People's Republic of China to furnish data on 
     gold and foreign exchange holdings, including assets held by 
     non-official agencies of the People's Republic of China.
       (2) In its November 2022 report, entitled ``Macroeconomic 
     and Foreign Exchange Policies of Major Trading Partners of 
     the United States'', the Department of the Treasury 
     concluded, ``China provides very limited transparency 
     regarding key features of its exchange rate mechanism, 
     including the policy objectives of its exchange rate 
     management regime and its activities in the offshore RMB 
     market.''. The Department continued: ``China's lack of 
     transparency and use of a wide array of tools complicate 
     Treasury's ability to assess the degree to which official 
     actions are designed to impact the exchange rate.''.
       (3) In that report, the Department further noted that 
     ``China's failure to publish foreign exchange intervention 
     and broader lack of transparency around key features of its 
     exchange rate mechanism make it an outlier among major 
     economies and warrants Treasury's close monitoring.''.

     SEC. 3. ADVOCACY FOR INCREASED EXCHANGE RATE TRANSPARENCY 
                   FROM CHINA.

       The Secretary of the Treasury shall instruct the United 
     States Executive Director at the International Monetary Fund 
     (in this Act referred to as the ``IMF'') to use the voice and 
     vote of the United States to advocate for--
       (1) increased transparency from the People's Republic of 
     China, and enhanced multilateral and bilateral surveillance 
     by the IMF, with respect to the exchange rate arrangements of 
     the People's Republic of China, including any indirect 
     foreign exchange market intervention through Chinese 
     financial institutions or state-owned enterprises;
       (2) in connection with consultations with the People's 
     Republic of China under Article IV of the Articles of 
     Agreement of the IMF, the inclusion of any significant 
     divergences by the People's Republic of China from the 
     exchange rate policies of other issuers of currencies used in 
     determining the value of Special Drawing Rights; and
       (3) during governance reviews of the IMF, stronger 
     consideration by IMF members and management of the 
     performance of China as a responsible stakeholder in the 
     international monetary system when evaluating quota and 
     voting shares at the IMF.

     SEC. 4. SUNSET.

       This Act shall have no force or effect on or after the date 
     that is 30 days after the earlier of--
       (1) the date that the United States Governor of the IMF 
     reports to the Congress that the People's Republic of China--
       (A) is in substantial compliance with obligations of the 
     People's Republic of China under the Articles of Agreement of 
     the IMF regarding orderly exchange rate arrangements; and
       (B) has undertaken exchange rate policies and practices 
     consistent with those of other issuers of currencies used in 
     determining the value of Special Drawing Rights; and
       (2) the date that is 7 years after the date of the 
     enactment of this Act.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
North Carolina (Mr. McHenry) and the gentlewoman from Ohio (Mrs. 
Beatty) each will control 20 minutes.
  The Chair recognizes the gentleman from North Carolina.


                             General Leave

  Mr. McHENRY. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days in which to revise and extend their remarks 
and include extraneous material on the bill.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from North Carolina?
  There was no objection.
  Mr. McHENRY. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in support of H.R. 839, the China Exchange Rate 
Transparency Act of 2023, introduced by the gentleman from Pennsylvania 
(Mr. Meuser).
  The China Exchange Rate Transparency Act reflects a bipartisan 
objective to hold China accountable for its poor economic governance.
  The International Monetary Fund's articles of agreement require 
member countries to `` . . . collaborate with the Fund and other 
members to assure orderly exchange arrangements and to

[[Page H36]]

promote a stable system of exchange rates.''
  In other words, to remain a member of the IMF, a country should avoid 
manipulating exchange rates to gain an unfair competitive advantage 
over other member countries.
  According to the Treasury Department's November 2022 Foreign Exchange 
Report, ``China's lack of transparency and use of a wide array of tools 
complicate Treasury's ability to assess the degree to which official 
actions are designed to impact the exchange rate.''
  This is just another barrier created by China's economic governance 
that prevents us from gaining basic insights into the world's second 
largest economy.
  This opacity threatens the core mission of the IMF, which was 
established to help monitor exchange rate agreements.
  It is ironic that China is always the one who demands a greater voice 
at the IMF, even if its actions undermine the fund's ability to be 
effective.
  For too long, we have seen China dismiss international rules of the 
road. From debt restructuring in the developing world to massive 
Chinese export credits, China has refused to work with other economies 
to find global solutions.
  Mr. Meuser's bill will help prevent China from undermining yet 
another key area of cooperation--the IMF's monitoring of exchange 
rates.
  It will require the Treasury Department to push for greater 
transparency in China's exchange rate management during the IMF's 
economic reviews of China.
  The bill would also make future reviews of Chinese shareholding in 
the IMF contingent on Beijing becoming a more responsible player in the 
international monetary system.
  We need Treasury to take a firm stand at the IMF and insist that 
China adhere to the exchange rate policies of other advanced economies, 
or at the very least, disclose what those policies are.
  This is important for the global economy, and it is certainly 
important for the American economy and American workers.
  I thank Mr. Meuser for his leadership on this bill and urge my 
colleagues to support it, and I reserve the balance of my time.
  Mrs. BEATTY. Madam Speaker, I yield myself such time as I may 
consume.
  Madam Speaker, I rise in support of H.R. 839, the China Exchange Rate 
Transparency Act of 2023, sponsored by Congressman Meuser.
  This bill requires the United States executive director at the 
International Monetary Fund, or IMF, to use its voice and vote to 
advocate for increased transparency regarding China's exchange rate 
policies.
  This is important because China has a history of devaluing its 
currency, the yuan, against the dollar, making its exports unfairly 
cheaper, and thereby harming small businesses in the United States.
  This bill would further impose greater accountability on China by 
requiring the United States to press the IMF to report whether China's 
exchange rate policies affect the value of SDRs and to consider China's 
performance as a responsible partner in the international monetary 
system when evaluating China's voting power at the IMF.
  President Biden's Treasury Department has already increased 
transparency of China's practices, including by placing it on a watch 
list for its failure to publish foreign exchange intervention and key 
features of its exchange rate setting mechanism.
  This bill would reinforce the Biden administration's actions to 
further push for greater transparency and accountability in this 
regard.
  These are sensible actions Congress can take to prevent China from 
using its currency as an economic weapon.
  For these reasons, I urge my colleagues to support this bill, and I 
reserve the balance of my time.
  Mr. McHENRY. Madam Speaker, I yield 4 minutes to the gentleman from 
Pennsylvania (Mr. Meuser) to explain his bill.
  Mr. MEUSER. Madam Speaker, I thank Chairman McHenry very, very much. 
I appreciate his leadership on our committee and on this bill.
  I do rise in support of my legislation, the China Exchange Rate 
Transparency Act, H.R. 839, a bipartisan initiative supported by 
Representatives Donalds, Loudermilk, Nickel, Lawler, Lee of Nevada, and 
De La Cruz.
  This legislation confronts the People's Republic of China's often 
deceptive and autocratic exchange rate policies and regular disregard 
for financial transparency on the international stage.
  With this legislation, we are directing and challenging China's 
opaque and often manipulative practices in foreign exchange markets, 
including their policy of accumulating massive foreign currency 
reserves and depreciating their currency, which undercuts the 
competitiveness of U.S. exports. By mandating the U.S. executive 
director at the IMF to use the voice and vote of the United States to 
advocate for increased exchange rate transparency from China, we are 
not just advocating for fairness--we are fighting for the integrity of 
the global economy.

  The Department of Treasury's reports from November 2022 to 2023 lay 
it out clearly: China's exchange rate practices are too often shrouded 
in secrecy, undermining not just the U.S. but the entire global trade 
system. It is time we confront China's persistent gaming of 
international norms. They have been playing by their own rules for too 
long, and it is detrimental to global economic fairness and stability.
  This legislation is not about only singling out China. It is about 
ensuring that all IMF members, including China, adhere to the rules 
that they have agreed to. China has promised to maintain orderly 
exchange rate arrangements without manipulation. It is our job to hold 
them to that promise and to ensure they do not continue to exploit the 
system to their advantage.
  We are taking a firm, no-nonsense approach to a complex issue, 
emphasizing our commitment to fair trade and a transparent global 
economic system.
  I strongly urge my colleagues to support the China Exchange Rate 
Transparency Act of 2023, H.R. 839. This legislation stands for 
accountability in international finance, fair trade practices, and the 
stability of our global economy.
  Mrs. BEATTY. Madam Speaker, I yield myself the balance of my time.
  Madam Speaker, this legislation builds upon the Biden 
administration's efforts to increase transparency and accountability of 
China on key features of how it sets its currency exchange rate.
  It is critical to continue to apply pressure on China in this regard 
because weaponizing its exchange rate will directly harm the United 
States' small businesses selling their products and services here in 
the United States.
  For these reasons, I again urge my colleagues to support this bill, 
and I yield back the balance of my time.

                              {time}  1515

  Mr. McHENRY. Madam Speaker, I yield myself the balance of my time.
  I reiterate that Mr. Meuser's bill will help prevent China from 
undermining yet another key area of cooperation; and that is the IMF's 
monitoring of exchange rates.
  Exchange rates affect the cost of goods and services in every 
district in America. Whether or not China is adhering to international 
norms affects our economy, it affects the global economy, and we need 
to address that.
  We have legislation that enables us to address that. It enables us to 
speak in a bipartisan way that China's currency manipulation we will 
not stand for as a statement of American policy.
  This bill will require the Department of the Treasury to push for 
greater transparency in China's exchange rate management during the 
IMF's economic reviews of China. That is the way we are going to do it.
  We have sound policy. I urge my colleagues to support it, and I thank 
my Democratic colleagues and Republican colleagues on committee for 
working together on this bill, as well as Mr. Meuser of Pennsylvania 
for his leadership on this important issue.
  Madam Speaker, I urge adoption of this bill, and I yield back the 
balance of my time.
  The SPEAKER pro tempore (Ms. Van Duyne). The question is on the 
motion offered by the gentleman from North Carolina (Mr. McHenry) that 
the House suspend the rules and pass the bill, H.R. 839, as amended.

[[Page H37]]

  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. McHENRY. Madam Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further 
proceedings on this motion will be postponed.

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