[House Report 106-755]
[From the U.S. Government Publishing Office]
106th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 106-755
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DISAPPROVAL OF NORMAL TRADE RELATIONS FOR THE PEOPLE'S REPUBLIC OF
CHINA
_______
July 18, 2000.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Archer, from the Committee on Ways and Means, submitted the
following
ADVERSE REPORT
[To accompany H.J. Res. 103]
[Including cost estimate of the Congressional Budget Office]
The Committee on Ways and Means, to whom was referred the
joint resolution (H.J. Res. 103) disapproving the extension of
the waiver authority contained in section 402(c) of the Trade
Act of 1974 with respect to the People's Republic of China,
having considered the same, report unfavorably thereon without
amendment and recommend that the joint resolution do not pass.
CONTENTS
Page
I. Introduction......................................................2
A. Purpose and Summary................................... 2
B. Background............................................ 2
C. Legislative History................................... 6
II. Explanation of Resolution.........................................6
III.Votes of the Committee............................................8
IV. Budget Effects....................................................8
A. Committee Estimate of Budgetary Effects............... 8
B. Statement Regarding New Budget Authority and Tax
Expenditures......................................... 8
C. Cost Estimate Prepared by the Congressional Budget
Office............................................... 8
V. Other Matters to be Discussed Under the Rules of the House.......11
A. Committee Oversight Findings and Recommendations...... 11
B. Summary of Findings and Recommendations of the
committee on Government Reform and Oversight......... 11
C. Constitutional Authority Statement.................... 11
I. INTRODUCTION
A. Purpose and Summary
H.J. Res. 103 would disapprove the extension of normal
trade relations (NTR status) to the products of the People's
Republic of China.
B. Background
Prior to 1951, the United States extended
nondiscriminatory, or unconditional most-favored-nation (MFN)
treatment, now referred to as normal trade relations (NTR),\1\
to all of its trading partners in accordance with obligations
undertaken when the United States joined the General Agreement
on Tariffs and Trade (GATT) in 1948. However, the Trade
Agreements Extension Act of 1951 directed the President to
withdraw or suspend the MFN status of the Soviet Union and all
countries under the domination of Communism. As implemented,
this directive was applied to all then-existing communist
countries except Yugoslavia. Poland's MFN status was restored
by Presidential directive in 1960.
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\1\ Legislation to replace the term ``most-favored-nation'' (MFN)
in United States statutes with the term ``normal trade relations''
(NTR) was enacted into law as part of the Internal Revenue Service
Restructuring and Reform Act of 1998, P.L. 105-206.
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Title IV of the Trade Act of 1974, which includes the so-
called ``Jackson-Vanik amendment,'' represented a
liberalization of the 1951 law. Title IV authorizes the
extension of normal trade relations treatment to nonmarket
economies which both meet freedom-of-emigration requirements
and conclude a commercial agreement with the United States.
Title IV also authorizes the President to waive the freedom-of-
emigration requirements of that title and to extend NTR status
to a nonmarket economy country if he determines that doing so
will substantially promote the freedom-of-emigration
objectives. The President's waiver authority under Title IV
expires at midnight on July 2 of each year. It may be extended
on an annual basis upon a Presidential determination and report
to Congress that such extension will substantially promote the
freedom-of-emigration objectives of the 1974 Trade Act.
In the case of the People's Republic of China, a bilateral
commercial agreement, as required by the Jackson-Vanik
amendment, was concluded on July 7, 1979, and has remained in
force since that time. NTR was first granted to China on
February 1, 1980, and has been renewed annually since then on
the basis of Presidential waivers. On June 2, 2000, the
President formally transmitted to the Congress his
recommendation to waive the 1974 Trade Act's freedom-of-
emigration requirements and to thereby extend China's NTR
status for an additional year, during the period of July 3,
2000, through July 2, 2001.
The President's waiver authority continues in effect unless
disapproved by the Congress--either generally or with respect
to a specific country--within 60 calendar days of the
expiration of the existing authority. Under Title IV amendments
adopted as part of the Customs and Trade Act of 1990,
disapproval takes the form of a joint resolution disapproving
the extension of Presidential authority to waive the 1974 Trade
Act's freedom-of-emigration requirements. Under the 1990
amendments, Congress may consider any veto message before the
later of the end of the 60-day period or within 15 legislative
days. The disapproval resolution is highly privileged, thus
generally guaranteeing a vote in the House if it is introduced.
If both chambers of Congress do not pass a resolution of
disapproval within 60 calendar days following the July 3, 2000,
expiration of the existing waiver authority, China's NTR status
is automatically renewed through July 2, 2001. House Joint
Resolution 103 was introduced by Representative Rohrabacher on
June 23, 2000. The resolution provides for disapproval of
extension of the waiver authority recommended by the President
on June 2, 2000, with respect to China for the period beginning
July 3, 2000.
H.R. 4444
In response to significant progress in China's negotiations
to accede to the World Trade Organization, the House approved
H.R. 4444, a bill to authorize extension of nondiscriminatory
treatment (normal trade relations treatment) to the People's
Republic of China, and to establish a framework for relations
between the United States and the People's Republic of China.
H.R. 4444, which was approved by the House on May 24, 2000 by a
vote of (237-197) amends Title IV of the Trade Act of 1974 to
remove the People's Republic of China (China) from the list of
countries subject to this provision upon the accession of China
to the WTO and upon certification by the President that the
final terms of accession are at least equivalent to the terms
of the November 15, 1999 bilateral agreement between the United
States and the People's Republic of China.
In addition to granting the President the authority to
remove China from application of Jackson-Vanik, H.R. 4444 also:
(1) establishes a Congressional-Executive Commission to monitor
China's progress on human rights, worker rights, and
enforcement of its WTO agreements; (2) includes trade
enhancement provisions, including a safeguard mechanism to
protect U.S. industry and workers from unexpected import surges
from China; (3) authorizes additional funds to monitor China's
adherence to WTO commitments, and requires annual reports on
China's compliance with its WTO commitments; (4) provides
technical assistance in developing the rule of law in
commercial and labor markets, as well as democracy-building in
China; (5) establishes a task force on prison labor imports;
and(6) expresses a sense of the Congress that Taiwan should
enter the WTO at the same General Council session as China. At the time
H.R. 4444 is signed into law, the annual review of China's NTR status
will no longer be necessary upon China's accession to the WTO. However,
until that time, it remains necessary for the Committee to consider
H.J. Res 103 according to the privileged procedures set out in Title IV
of the Trade Act 1974.
China's negotiations to join the World Trade Organization
China applied for accession to the General Agreement on
Tariffs and Trade (GATT) in July 1986, and work has proceeded
in the China Working Party since that time to negotiate the
conditions upon which China will enter the GATT, and since
January 1, 1995, the World Trade Organization (WTO).
Article XII of the Agreement Establishing the WTO states
that any State or separate customs territory may accede to the
WTO ``on terms to be agreed between it and the WTO.'' In
practice, any WTO applicant must negotiate terms for membership
in the WTO in the form of a Protocol of Accession. Through the
operation of a Working Party, the United States and other WTO
members have an opportunity to review the trade regimes of
applicants to ensure that they are capable of implementing WTO
obligations. In parallel with the Working Party's efforts, the
United States and other interested member governments conduct
separate negotiations with the applicant. These bilateral
negotiations are aimed at achieving specific concessions and
commitments on tariff levels, agricultural market access, and
trade in services.
On April 8, 1999, following the summit meeting between
Chinese Premier Zhu Rongji and President Clinton, Ambassador
Barshefsky announced that U.S. and Chinese negotiators secured
``broad progress toward an expansive bilateral market access
agreement,'' which would provide extensive market openings for
U.S. agriculture, manufactured products, and services along
with Chinese commitments to adopt WTO rules relating to such
issues as technology transfer and offsets, subsidies, product
safeguards, and State enterprises. The Administration, however,
declined to sign the agreement at that time.
The U.S.-China WTO agreement
The United States-China Bilateral Trade Agreement was
eventually finalized on November 15, 1999, in Beijing. In this
historic agreement China committed upon accession to:
Phase-in of full trading and distribution rights
(including the ability to provide services auxiliary to
distribution) for almost all products for U.S. firms throughout
China.
Cut average tariffs for U.S. priority agricultural
products (e.g., beef, grapes, wine, cheese, poultry, and pork)
from 31.5% to 14.5% by 2004. Overall industrial tariffs would
fall from an average of 24.6% to 9.4% by 2005 (tariffs on U.S.
``priority products,'' such as wood, paper, chemicals, and
capital and medical equipment would fall even further). Tariffs
on information technology products, such as computers,
semiconductors, and telecommunications equipment, would be cut
from an average level of 13.3% to zero by 2005.
Establish a tariff-rate quota system for imports
of agricultural bulk commodities (such as wheat, corn, cotton,
barley, and rice), i.e., imports up to a specified quota level
would be assessed a much higher tariff rate. Private trade in
agricultural products will be permitted for the first time.
Phase out quotas and other quantitative
restrictions (some upon accession, many within two years, and
most within five years). Quota levels for many products would
expand by 15% each year until the elimination of the quota.
Eliminate export subsidies on agricultural
products and SPS restrictions that are not scientifically-
based.
Provide access to service sectors (many of which
are currently closed to foreign firms), including distribution,
telecommunications, insurance, banking, securities, and
professional services (including legal, accountancy, taxation,
management consultancy, architecture, engineering, urban
planning, medical and dental, and computer-related services).
China would expand (over various transitional periods) the
scope of allowed services and gradually remove geographical
restrictions on foreign service providers. The amount of
permitted foreign ownership in service industries would vary
(and in some cases expand over time) from sector to sector.
Reduce restrictions on auto trade. Tariffs on
autos would fall from 80-100% to 25% (tariffs on auto parts
reduced to an average rate of 10%) by 2006. Auto quotas would
be eliminated by 2005. U.S. financial firms would be allowed to
provide financing for the purchase of cars in China.
Provide fair treatment for foreign firms operating
in China by removing government rules requiring technology
transfer, local content, and export performance conditions.
Provide that Chinese state-owned and state-
invested firms make purchases and sales based on commercial
considerations and give U.S. firms the opportunity to
competefor sales on a non-discriminatory basis.
Accept the use by the United States of certain
antidumping provisions (over a transitory period) and to permit
the use of certain safeguard measures to respond to possible
surges in imports from China that might cause or threaten to
cause market disruption to a U.S. industry (over transitory
periods).
U.S. firms would also benefit from China's trade agreements
with the other WTO countries that have concluded bilateral
agreements with China, including the two WTO members that are
still negotiating with China if they have obtained or are able
to obtain benefits beyond what the United States was able to
achieve. In addition, the WTO working party is expected to set
additional requirements on China's WTO accession (such as rules
on subsidies) that would also benefit U.S. firms. \2\
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\2\ CRS memo, U.S. Interests in China's Accession to the World
Trade Organization: Arguments in Favor of Accession, May 2, 2000.
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In response to progress achieved in China's WTO commitments
represented by the bilateral agreement with the United States,
President Clinton announced that he would work with other WTO
member countries to gain China's entry in the WTO as soon as
possible, and on March 8, 2000, he transmitted to Congress a
request for legislation to terminate the application of Title
IV of the Trade Act of 1974 to China and to extend Normal Trade
Relations (NTR) treatment to products from China upon its
accession to the WTO.
The Agreement represents a crucial step in China's WTO
accession process. Another significant step occurred on May 19,
2000, when the European Union also completed an agreement with
China on terms of accession. Other steps that remain ahead
include the conclusion of bilateral negotiations with a handful
of other WTO members, such as Mexico, as well as the
multilateral negotiations on China's accession protocol. China
then must complete its domestic process for implementing the
country's WTO commitments. Accession takes effect thirty days
after China deposits its instruments of ratification.
C. Legislative History
Committee action
House Joint Resolution 103 was introduced on June 23, 2000,
by Representative Rohrabacher (R-CA) and was referred to the
Committee on Ways and Means. On July 13, 2000, the Committee
ordered House Joint Resolution 103 reported adversely without
amendment to the House by voice vote, with a quorum present.
Legislative hearing
The Committee considered the issue of whether to normalize
trade relations with China and to remove China from Title IV of
the Trade Act of 1974 in the context of the debate surrounding
permanent NTR and China's imminent membership in the World
Trade Organization. In hearings held on February 16, April 12,
and May 3, 2000, Members of Congress, a governor, and
representatives from business, labor, human rights, and
religious groups expressed their views regarding U.S.-China
trade relations. At the May 3 hearing, four cabinet members
appeared in favor of normalizing trade relations with China.
II. EXPLANATION OF THE RESOLUTION
Present law
Title IV of the Trade Act of 1974, as amended by the
Customs and Trade Act of 1990 (Public Law 101-382), sets forth
three requirements relating to freedom of emigration which must
be met, or waived by the President, in order for a nonmarket
economy country to be granted NTR. Title IV also requires that
a bilateral commercial agreement that provides for
nondiscriminatory, NTR status remain in force between the
United States and the nonmarket economy country receiving NTR
status. Title IV also sets forth minimum provisions that must
be included in such an agreement.
An annual Presidential recommendation under section 402(d)
for a 12-month extension of authority to waive the Jackson-
Vanik freedom-of-emigration requirements--either generally or
for specific countries--may be disapproved through passage by
Congress of a joint resolution of disapproval within 60
calendar days after the expiration of the previous waiver
authority. Congress may override a Presidential veto within the
later of the end of the 60 calendar day period for initial
passage or 15 legislative days.
Explanation of the resolution
House Joint Resolution 103 states that the Congress does
not approve the extension of the waiver authority contained in
section 402(c) of the Trade Act of 1974, recommended by the
President to the Congress on June 2, 2000, with respect to the
People's Republic of China.
Reasons for committee action
The Committee has long supported a policy of engagement
with China and hasconsistently rejected annual legislation to
revoke normal trade relations, or nondiscriminatory trade treatment,
which it sees as the cornerstone of that policy. Members believe that
normalizing trade relations with China by graduating it from the annual
review process established under the Jackson-Vanik amendment, a Cold
War trade statute, is appropriate. Specifically, the Committee believes
that increased trade, together with other tools of active engagement,
enables the United States to influence the growth of democratic and
market-oriented policies in China in a manner which will improve
respect for fundamental human rights and encourage political reform.
The Committee continues to view with deep concern
widespread human rights abuses carried out by the Government of
China against Catholic priests and bishops, Protestant pastors,
Tibetan Buddhist clergy, and pro-democracy activists. The
Committee is also concerned about China's continued suppression
of labor rights. Nevertheless, the Committee is concerned that
rejecting the President's recommendation to graduate China from
the Jackson-Vanik amendment may be interpreted by the Chinese
as an antagonistic act that would undermine U.S. leverage to
bring about change in China, while at the same time sacrificing
the interests of U.S. exporters, workers, and consumers.
The House demonstrated a commitment to the policy of
engagement with China earlier this year when on May 24, 2000 it
voted (237-197) to approve H.R. 4444, which would remove China
from Title IV of the Trade Act of 1974 upon its accession to
the World Trade Organization. This action was taken in response
to China's pending accession to the WTO and the completion of
the Bilateral Trade Agreement between the United States and
China on November 15, 1999. At the time H.R. 4444 is signed
into law, the annual review of China's NTR status will no
longer be necessary upon China's accession. However, until that
time, it remains necessary for the Committee to consider the
annual disapproval resolution (if such a resolution is
introduced) according to the privileged procedures set out in
Title IV of the Trade Act 1974. Ending the annual consideration
of NTR status for China and granting permanent NTR will allow
U.S. farmers and businesses to benefit from China's WTO
commitments once China becomes a full member of the WTO.
Withdrawing NTR for China would also have a serious adverse
effect on Hong Kong and Taiwan due to the high levels of trade
and investment between Hong Kong and China and between Taiwan
and China. By severely disrupting trade in the region,
terminating NTR would harm U.S. efforts to address economic
instability in Asia and risk prompting currency devaluations,
similar to those that occurred in 1997 and 1998. Failing to
grant NTR treatment at this time would forfeit the market
access concessions made by the Chinese in the Bilateral Trade
Agreement and those that will be included in China's pending
accession to the World Trade Organization. If fully
implemented, these commitments would represent substantial new
opportunities for United States exports to and investment in
China. Terminating NTR would jeopardize efforts to bring China
into the WTO.
Finally, the Committee believes that revoking China's NTR
status as of July 3 of this year would constitute too blunt a
sanction and would work against U.S. Government efforts to
bring China into the global community of civilized nations.
Rejecting annual NTR in light of the House's recent approval of
legislation to remove China from Title IV and grant permanent
NTR would send conflicting signals as to U.S. policy with
respect to China. While the United States has many serious
problems with China, the Committee believes areas of U.S.-Sino
disagreement are best addressed through expanding U.S. contact
with China and maintaining strong and effective mechanisms to
press China to continue to reform.
III. VOTE OF THE COMMITTEE
In compliance with clause 3(b) of rule XIII of the Rules of
the House of Representatives, the following statement is made
concerning the vote of the Committee on Ways and Means in its
consideration of the joint resolution, H.J. Res. 103.
motion to report the bill
The joint resolution, H.J. Res. 103, was ordered adversely
reported by a voice vote, with a quorum being present.
IV. BUDGET EFFECTS
A. Committee Estimate of Budgetary Effects
In compliance with clause 3(d)(2) of rule XIII of the Rules
of the House of Representatives, the following statement is
made concerning the effects on the budget of this resolution,
House Joint Resolution 103 as reported: The Committee agrees
with the estimate prepared by CBO which is included below.
B. Statement Regarding New Budget Authority and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee states that
enactment of H.J. Res. 103 would increase customs duty receipts
due to higher tariffs imposed on goods from China.
C. Cost Estimate Prepared by the Congressional Budget Office
In compliance with clause 3(c)(3) of rule XIII of the Rules
of the House of Representatives, requiring a cost estimate
prepared by the Congressional Budget Office, the following
report prepared by CBO is provided.
U.S. Congress,
Congressional Budget Office,
Washington, DC, July 18, 2000.
Hon. Bill Archer,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.J. Res. 103,
disapproving the extension of nondiscriminatory treatment to
the products of the People's Republic of China.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts are Hester
Grippando and Erin Whitaker (for revenues) and Lauren Marks
(for private-sector mandates).
Sincerely,
Barry B. Anderson
(For Dan L. Crippen, Director).
Enclosure.
H.J. Res. 103--Disapproving the extension of nondiscriminatory
treatment to the products of the People's Republic of China
Summary: Under the Trade Act of 1974, nondiscriminatory
trade relations may not be conferred on a country with a
nonmarket economy if that country maintains restrictive
emigration policies. However, the President may waive this
prohibition on an annual basis if he certifies that doing so
would promote freedom of emigration in that country. On June 2,
2000, President Clinton transmitted to Congress his intention
to waive the prohibition with respect to the People's Republic
of China for a year, beginning July 3, 2000. H.J. Res. 103
would disapprove the President's extension of this waiver. CBO
estimates that denying nondiscriminatory tariff treatment to
the People's Republic of China would increase revenues by $520
million over the fiscal year 2000-2001 period. Since adopting
this resolution would affect receipts, pay-as-you-go procedures
would apply.
The bill contains no intergovernmental mandates as defined
in the Unfunded Mandates Reform Act (UMRA) and would not affect
the budgets of state, local, or tribal governments. H.J. Res.
103 would impose a private-sector mandate on importers of
Chinese goods that would be subject to higher tariffs. CBO
estimates that the increased costs in tariffs to importers
would total $425 million in fiscal year 2001, exceeding the
threshold for private-sector mandates ($109 million in 2000,
adjusted annually for inflation) estimated in UMRA.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.J. Res. 103 is shown in the following
table.
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By fiscal year, in millions of dollars--
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2000 2001 2002 2003 2004 2005
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CHANGES IN REVENUES
Estimated revenues........................................ 95 425 0 0 0 0
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Basis of estimate: Denial of nondiscriminatory trade
relations to the People's Republic of China would substantially
increase the tariff rates imposed on its exports to the United
States. CBO assumes that these higher tariff rates would
increase U.S. prices and would decrease U.S. demand of goods
imported from the People's Republic of China. CBO estimates
that imports from the People's Republic of China would decline
by more than enough to offset the higher rates, so that the
U.S. customs duties collections on Chinese imports would fall.
However, CBO estimates that some of that drop in trade with the
People's Republic of China would be offset by an increase in
imports from other countries with normal trade relations
status. The increase in revenues from this effect would
outweigh the reduction in revenues from the People's Republic
of China. Assuming an effective date of August 1, 2000, CBO
estimates that revenues would increase by $520 million over the
fiscal year 2000-20001 period. The People's Republic has
received normal trade relations status through presidential
proclamation on an annual basis beginning in 1980 and CBO
assumes there would be a resumption of normal trade relations
with the People's Republic of China after July 3, 2001.
Pay-as-you-go considerations: The Balanced Budget and
Emergency Deficit Control Act sets up pay-as-you-go procedures
for legislation affecting direct spending or receipts. The net
changes in governmental receipts that are subject to pay-as-
you-go procedures are shown in the following table. For the
purposes of enforcing pay-as-you-go procedures, only the
effects in the current year, the budget year, and the
succeeding four years are counted.
----------------------------------------------------------------------------------------------------------------
By fiscal year in millions of dollars--
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2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
----------------------------------------------------------------------------------------------------------------
Changes in outlays................. Not applicable
Changes in receipts................ 95 425 0 0 0 0 0 0 0 0 0
----------------------------------------------------------------------------------------------------------------
Estimated impact on state, local, and tribal governments:
the bill contains no intergovernmental mandates as defined in
UMRA and would not affect the budgets of state, local, or
tribal governments.
Estimated impact on the private sector: H.J. Res. 103 would
impose a private-sector mandate on importers of Chinese goods
that would be subject to higher tariffs. CBO estimates that the
increased costs in tariffs to importers would total $425
million in fiscal year 2001, exceeding the threshold for
private-sector mandates ($109 million in 200, adjusted annually
for inflation) established in UMRA. U.S. consumers of Chinese
goods would also bear indirect costs if they chose to
substitute goods from other foreign or domestically produced
good for Chinese products.
Previous estimate: On July 12, 1999, CBO transmitted an
estimate for H.J. Res. 57, disapproving the extension of the
waiver authority contained in section 402(c) with respect to
the People's Republic of China, as ordered reported adversely
by the house Committee on Ways and Means. CBO estimated that
the resolution would increase revenues by $507 million in 2000.
On May 22, 2000, CBO prepared estimates for H.R. 4444 and
S. 2277, bills to authorize extension of nondiscriminatory
treatment (normal trade relations treatment) to the People's
Republic of China, as ordered reported by the House Committee
on Ways and Means and the Senate Committee on Finance,
respectively. CBO concluded that enactment of these bills would
likely increase revenues because they would allow the United
States to trade with China under the World Trade Organization
(WTO). Under that trading regime, imports of textiles and
apparel form China would increase because they would be subject
to less restrictive trade quotas. CBO found it had no basis for
estimating the revenue impact of granting the President such
authority.
Estimate prepared by: Federal costs: Hester Grippando and
Erin Whitaker; Impact on the private sector: Lauren Marks.
Estimate approved by: G. Thomas Woodward, Assistant
Director for Tax Analysis.
V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE
A. Committee Oversight Findings and Recommendations
With respect to clause 3(c)(1) of rule XIII of the Rules of
the House of Representatives (relating to oversight findings),
the Committee, based on public hearing testimony and
information from the Administration, believes that revoking
China's NTR status as of July 3, 2000, would be unwise and
counterproductive.
B. Summary of Findings and Recommendations of the Committee on
Government Reform and Oversight
With respect to clause 3(c)(4) of rule XIII of the Rules of
the House of Representatives, no oversight findings or
recommendations have been submitted to the Committee by the
Committee on Government Reform and Oversight with respect to
the subject matter contained in the resolution.
C. Constitutional Authority Statement
With respect to clause 3(d)(1) of rule XIII of the Rules of
the House of Representatives, relating to Constitutional
Authority, the Committee states that the Committee's action in
reporting the bill is derived from Article I of the
Constitution, Section 8 (``The Congress shall have power to lay
and collect taxes, duties, imposts and excises, to pay the
debts and to provide for * * * the general Welfare of the
United States * * *'').