US Federal 2025-2026 Regular Session

US Federal House Bill HB386

Introduced
1/14/25  
Refer
1/14/25  

Caption

Chinese Currency Accountability Act of 2025This bill requires the United States to oppose, absent specified conditions, any increase in the weight of Chinese currency (i.e., the renminbi) in the basket of currencies (currently, a set of five currencies, each with different weightings) used to determine the value of Special Drawing Rights. Special Drawing Rights are international reserve assets created by the International Monetary Fund (IMF) to supplement member countries' official foreign exchange reserves.Specifically, the Department of the Treasury must instruct certain U.S. officials at the IMF to oppose any such increase unless Treasury has certified that China is in compliance with certain standards and international agreements, including that (1) China is in compliance with all general obligations of members of the IMF, (2) China has not been found to have manipulated its currency in the preceding 12 months, and (3) China adheres to the rules and principles of the Paris Club and the Organisation for Economic Co-operation and Development (OECD) Arrangement on Officially Supported Export Credits. 

Impact

The enactment of HB386 would solidify the United States' position on currency valuation within the IMF framework and could lead to increased scrutiny of China's economic practices. It compels the Secretary of the Treasury to submit a report reflecting China's adherence to specific financial and ethical standards before any voting decisions are made regarding the renminbi’s weight in SDR. This condition underscores the U.S. commitment to transparency and compliance in international monetary policies, impacting how future negotiations within the IMF may unfold.

Summary

House Bill 386, titled the 'Chinese Currency Accountability Act of 2025', mandates that the United States' representatives at the International Monetary Fund (IMF) oppose any increase in the weight of the Chinese renminbi in the Special Drawing Rights (SDR) basket. The bill highlights concerns regarding China's compliance with international financial obligations, specifically aiming to prevent any recognition of the renminbi that could enhance its influence in global finance without clear regulatory compliance. This legislative action reflects a broader strategy to monitor and manage China's economic weight on the international stage.

Sentiment

The sentiment surrounding HB386 appears to be cautious yet proactive among lawmakers, reflecting bipartisan support for accountability in China's currency practices. Proponents argue that the move is essential to protect the integrity of global finance and curb any potential imbalances favoring China's economic ascendancy. Critics, however, may view the bill as a politically motivated stance that does not necessarily address broader trade relations or the complexities of international finance but rather emphasizes the tensions between the U.S. and China.

Contention

Notable points of contention highlight the balance between supporting international financial frameworks and preventing perceived currency manipulation by China. Some legislators express concerns that overly aggressive measures might exacerbate trade tensions or provoke retaliatory actions from Beijing. Moreover, the sunset provision indicating that the bill will lose its effectiveness after ten years raises questions regarding the long-term strategy and sustainability of U.S. currency policies, further igniting debate among financial experts and policymakers.

Congress_id

119-HR-386

Policy_area

Foreign Trade and International Finance

Introduced_date

2025-01-14

Companion Bills

No companion bills found.

Previously Filed As

US SB206

Restoring Trade Fairness ActThis bill establishes various trade measures related to China, including by revoking China's permanent normal trade relations (PNTR) status and increasing the rates of duty (i.e., tariffs) on Chinese imported goods. The bill prohibits imported goods originating from North Korea, China, Russia, or Iran from receiving de minimis treatment. (Current law allows for U.S. imports under a de minimis threshold of $800 per shipment to enter free of tariffs, fees, and taxes.)Specifically, the bill revokes China's PNTR status. Currently, China's PNTR status allows for Chinese goods to have duty rates set forth in column 1 of the Harmonized Tariff Schedule of the United States (HTS). With the removal of China's PNTR status, the bill generally sets the applicable duty rates on imported Chinese goods at the higher rates listed in column 2 of the HTS, with exceptions.The bill establishes a minimum duty rate of 35% for all Chinese goods, which requires column 2 rates to be at least 35%. However, the bill establishes a minimum duty rate of 100% for a list of specified goods (e.g., various minerals, certain vaccines and drugs, and certain defense-related articles). Duty rates are phased in over five years and adjusted annually for inflation.The bill alsoauthorizes the President to take additional actions related to trade with China, requires merchandise imported from China to be appraised based on U.S. value, and establishes a trust fund to compensate U.S. producers for lost revenue resulting from retaliatory actions by China.

US HB694

Restoring Trade Fairness ActThis bill establishes various trade measures related to China, including by revoking China's permanent normal trade relations (PNTR) status and increasing the rates of duty (i.e., tariffs) on Chinese imported goods. The bill prohibits imported goods originating from North Korea, China, Russia, or Iran from receiving de minimis treatment. (Current law allows for U.S. imports under a de minimis threshold of $800 per shipment to enter free of tariffs, fees, and taxes.)Specifically, the bill revokes China's PNTR status. Currently, China's PNTR status allows for Chinese goods to have duty rates set forth in column 1 of the Harmonized Tariff Schedule of the United States (HTS). With the removal of China's PNTR status, the bill generally sets the applicable duty rates on imported Chinese goods at the higher rates listed in column 2 of the HTS, with exceptions.The bill establishes a minimum duty rate of 35% for all Chinese goods, which requires column 2 rates to be at least 35%. However, the bill establishes a minimum duty rate of 100% for a list of specified goods (e.g., various minerals, certain vaccines and drugs, and certain defense-related articles). Duty rates are phased in over five years and adjusted annually for inflation.The bill alsoauthorizes the President to take additional actions related to trade with China, requires merchandise imported from China to be appraised based on U.S. value, and establishes a trust fund to compensate U.S. producers for lost revenue resulting from retaliatory actions by China.

US HB462

No Support for Terror ActThis bill establishes measures to prevent the allocation or use of certain funds to support genocide or terrorism.Specifically, the bill requires the Department of the Treasury to instruct the U.S. Executive Director at the International Monetary Fund (IMF) to oppose the allocation of Special Drawing Rights to any country that is a perpetrator of genocide or a state sponsor of terrorism and to advocate that the IMF adopt a rule prohibiting such an allocation. (Special Drawing Rights are international reserve assets created by the IMF to supplement member countries' official foreign exchange reserves.)Further, the bill requires Treasury, the Department of State, and the U.S. Agency for International Development to jointly review and report on assistance provided to nongovernmental organizations and international organization to ensure such assistance is not being provided to the Taliban or other terrorist organizations. Each prime awardee of this assistance must provide evidence that all subawardees are complying with U.S. anti-terrorism financing laws.

US SR713

A resolution supporting the United States dollar as the reserve currency of the world and combating the economic influence of the People's Republic of China.

US HR232

Calling on the Government of Panama to expel officials and interests of the People's Republic of China and terminate Chinese management of key Panamanian ports.

US SR31

A resolution calling on the Government of Panama to expel officials and interests of the People's Republic of China and terminate Chinese management of key Panamanian ports.

US HB460

Chinese Communist Party Visa Disclosure Act of 2025 or the CCP Visa Disclosure Act of 2025This bill requires an applicant for an F, J, or M (student or exchange visitor) visa to disclose in the application certain information about whether the applicant has received or will receive funds from the Chinese government, the Chinese Communist Party (CCP), or an entity controlled by either. If an individual receives such funds after receiving such a visa, the individual must inform the Department of Homeland Security and the Department of State.Any visa issued to an individual who violates these disclosure requirements may be revoked.

US HR470

Remembering the victims of the 1989 Tiananmen Square massacre and condemning the continued and intensifying crackdown on human rights and basic freedoms within the People's Republic of China, including the Hong Kong Special Administrative Region, by the Chinese Communist Party, and for other purposes.

US A09031

Prohibits the sale or lease of any property in the state to the People's Republic of China or the Chinese communist party.

US S08490

Prohibits the sale or lease of any property in the state to the People's Republic of China or the Chinese communist party.

Similar Bills

No similar bills found.