HR 5312 IHCommentsClose CommentsPermalink

To limit the total value of Chinese goods that may be procured by the United States Government during a calendar year to not more than the total value of United States goods procured by the Chinese Government if any during the preceding calendar year, and for other purposes.CommentsClose CommentsPermalink

May 13, 2010CommentsClose CommentsPermalink

Mr. SCHAUER (for himself, Mr. MICHAUD, Mr. RYAN of Ohio, Ms. KAPTUR, Mr. KILDEE, Mr. JONES, Mr. HARE, Ms. SUTTON, and Ms. SHEA-PORTER) introduced the following bill; which was referred to the Committee on Oversight and Government Reform, and in addition to the Committees on Ways and Means and Transportation and Infrastructure, 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 concernedCommentsClose CommentsPermalink

To limit the total value of Chinese goods that may be procured by the United States Government during a calendar year to not more than the total value of United States goods procured by the Chinese Government if any during the preceding calendar year, and for other purposes.CommentsClose CommentsPermalink

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

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Reciprocal Government Procurement with China Creates American Jobs Act’.CommentsClose CommentsPermalink

SEC. 2. FINDINGS AND STATEMENT OF POLICY.

(a) Findings- Congress finds the following:CommentsClose CommentsPermalink





(1) The purchase of government goods and services is an important means through which the government fulfills its constitutional duties to provide for the common defense and promote the general welfare of the United States.CommentsClose CommentsPermalink





(2) American taxpayers expect that government procurement serves the interests of all Americans.CommentsClose CommentsPermalink





(3) The United States and several of its trading partners are signatories to the WTO Agreement on Government Procurement, which holds that signatories agree to certain restraints with regard to government procurement.CommentsClose CommentsPermalink





(4) However, the People’s Republic of China is not a signatory to the Agreement on Government Procurement, and that, accordingly, it is not a violation of that agreement for the Congress to establish procurement policies as best suit the American public interest with regard to Chinese goods.CommentsClose CommentsPermalink





(5) China has structured its government procurement law to favor its domestic goods, as noted in article 10 of such law.CommentsClose CommentsPermalink





(6) China has also recently announced a plan to favor so-called ‘indigenous innovation’ under which the Chinese Government would expressly favor locally developed products and technologies.CommentsClose CommentsPermalink





(7) American companies have had little or no success in accessing Chinese Government procurement contracts, while Chinese companies have had great success in selling goods for United States Government projects.CommentsClose CommentsPermalink





(b) Statement of Policy- Accordingly, it shall be the policy of the United States to limit the total value of Chinese goods that may be procured by the United States Government during a calendar year to not more than the total value of United States goods procured by the Chinese Government if any during the preceding calendar year.CommentsClose CommentsPermalink

SEC. 3. CERTIFICATION; PROHIBITION AND LIMITATION ON UNITED STATES PROCUREMENT OF CHINESE GOODS.

(a) Certification- Not later than March 1 of each year beginning in 2011, the Secretary of Commerce shall submit to Congress a certification in writing that contains the following:CommentsClose CommentsPermalink





(1) A determination of whether or not the Chinese Government has prohibited the procurement of United States goods by the Chinese Government during the preceding calendar year.CommentsClose CommentsPermalink





(2) If the Chinese Government has not prohibited the procurement of United States goods by the Chinese Government during the preceding calendar year, an identification of the total value of United States goods procured by the Chinese Government during the preceding calendar year, as determined by the International Trade Administration under section 4.CommentsClose CommentsPermalink





(b) Prohibition- If the Secretary determines and certifies to Congress under subsection (a)(1) that the Chinese Government has prohibited the procurement of United States goods by the Chinese Government during the preceding calendar year, then--CommentsClose CommentsPermalink





(1) the head of each executive agency may not award a contract for the procurement of Chinese goods during the succeeding calendar year; andCommentsClose CommentsPermalink





(2) the Secretary of Transportation shall prohibit a State or other entity from using funds made available from the Highway Trust Fund or the Airport and Airway Trust Fund for the award of a contract for the procurement of Chinese goods during the succeeding calendar year.CommentsClose CommentsPermalink





(c) Limitation-CommentsClose CommentsPermalink





(1) IN GENERAL- If the Secretary determines and certifies to Congress under subsection (a)(1) that the Chinese Government has not prohibited the procurement of United States goods by the Chinese Government during the preceding calendar year, then the total value of Chinese goods that may be procured by the United States Government during the succeeding calendar year may not exceed the total value of United States goods procured by the Chinese Government during the preceding calendar year, as identified under subsection (a)(2).CommentsClose CommentsPermalink





(2) RULE OF CONSTRUCTION- For purposes of determining the total value of Chinese goods that may be procured by the United States Government during a calendar year under paragraph (1), the total value of Chinese goods procured by a State or other entity using funds made available from the Highway Trust Fund or the Airport and Airway Trust Fund during the preceding calendar year shall be deemed to be Chinese goods procured by the United States Government.CommentsClose CommentsPermalink

SEC. 4. ITA PROGRAM AND NOTIFICATION.

(a) Program- The International Trade Administration shall establish a program--CommentsClose CommentsPermalink





(1) to identify the total value of United States goods procured by the Chinese Government on an annual basis, as required under section 3(a)(2), including an accounting of the value of such procurement; andCommentsClose CommentsPermalink





(2) to provide notification in accordance with subsection (b).CommentsClose CommentsPermalink





(b) Notification- The International Trade Administration shall publish notice in the Federal Register on or as soon as practicable after the date on which the total value of Chinese goods procured by the United States Government equals 50 percent, 75 percent, and 100 percent of the total value of United States goods procured by the Chinese Government during the preceding calendar year for purposes of complying with the limitation under section 3(c).CommentsClose CommentsPermalink

SEC. 5. DEFINITIONS.

In this Act:CommentsClose CommentsPermalink





(1) CHINESE GOOD- The term ‘Chinese good’ means a good that is the growth, product, or manufacture of the People’s Republic of China. A good shall be determined to be the manufacture of the People’s Republic of China for purposes of this paragraph if the sum of--CommentsClose CommentsPermalink





(A) the cost or value of the materials produced in China, plusCommentsClose CommentsPermalink





(B) the direct costs of processing operations performed in China,CommentsClose CommentsPermalink





is not less than 50 percent of the appraised value of such good at the time it is entered.CommentsClose CommentsPermalink





(2) CHINESE GOVERNMENT- The term ‘Chinese Government’ means the central government of the People’s Republic of China and any other governmental entity, including--CommentsClose CommentsPermalink





(A) any agency or instrumentality of the Chinese Government;CommentsClose CommentsPermalink





(B) any entity that is owned or controlled, directly or indirectly, by the Chinese Government; andCommentsClose CommentsPermalink





(C) any Chinese provincial or local governmental entity.CommentsClose CommentsPermalink





(3) EXECUTIVE AGENCY- The term ‘executive agency’ has the meaning given the term in section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403).CommentsClose CommentsPermalink





(4) SECRETARY- The term ‘Secretary’ means the Secretary of Commerce.CommentsClose CommentsPermalink





(5) UNITED STATES GOOD- The term ‘United States good’ means a good that is the growth, product, or manufacture of the United States. A good shall be determined to be the manufacture of the United States for purposes of this paragraph if the sum of--CommentsClose CommentsPermalink





(A) the cost or value of the materials produced in the United States, plusCommentsClose CommentsPermalink





(B) the direct costs of processing operations performed in the United States,CommentsClose CommentsPermalink





is not less than 50 percent of the appraised value of such good at the time it is entered.CommentsClose CommentsPermalink