[Pages H596-H599]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

CHINA EXCHANGE RATE TRANSPARENCY ACT OF 2025

Mr. HILL of Arkansas. Mr. Speaker, I move to suspend the rules and
pass the

[[Page H597]]

bill (H.R. 692) 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. 692

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 2025''.

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
Arkansas (Mr. Hill) and the gentleman from California (Mr. Vargas) each
will control 20 minutes.
The Chair recognizes the gentleman from Arkansas.

General Leave

Mr. HILL of Arkansas. 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 this bill.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Arkansas?
There was no objection.
Mr. HILL of Arkansas. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise in support of H.R. 692, the China Exchange Rate
Transparency Act. I thank my friend, the gentleman from Pennsylvania
(Mr. Meuser), for his leadership in crafting and sponsoring this
legislation.
I also congratulate him for assuming the chairmanship of the
Financial Services Subcommittee on Oversight and Investigations for
this, the 119th Congress. He is off to a superb start.
H.R. 692 is a critical tool as we reassess our economic relations
with the People's Republic of China.
Unlike advanced economies with floating currencies, the Chinese
manage their exchange rate through a nonindependent central bank and a
state-owned set of financial institutions.
The Treasury Department has long been tasked with monitoring foreign
countries' intervention in the currency markets, with a legal mandate
from this House to call them out when manipulating exchange rates in
order to gain an unfair trade advantage.
The problem with China is that its exchange rate management is so
opaque that Treasury cannot effectively assess the country's exchange
activities.
Year after year, Treasury reports back to Congress showing how
Beijing's lack of transparency makes China an outlier among our major
trading partners. This is not only alarming for the United States but
the world at large as last year the People's Republic of China recorded
a trade surplus of nearly $1 trillion.
Mr. Meuser's bill requires Treasury to lobby for stronger
surveillance of Chinese currency practices at the International
Monetary Fund, the primary institution overseeing foreign countries'
exchange rate practices.
In addition, Treasury will have to push the IMF to highlight how
China's opaque policies diverge from that of other major economies in
the world.
H.R. 692 also requires Treasury to take China's lack of transparency
into account when reviewing Beijing's shareholding level as a
shareholder in the International Monetary Fund.
During the last shareholding review, Congress made it clear that an
increase in voting power for China would be unacceptable given its
absolute flouting of the multilateral rules of the road. To the IMF's
credit, it agreed to keep China where it was.
Mr. Meuser's important bill underscores that future increases should
also be off the table if China continues to shroud its exchange rate
practices in secrecy.
Mr. Speaker, I, again, thank the gentleman from Pennsylvania for
sponsoring this measure. He is going after China in precisely the
manner that Beijing most dislikes, by harnessing multilateral pressure
across the world to hold this regime and Beijing accountable.
Mr. Speaker, I urge my colleagues to support the China Exchange Rate
Transparency Act, and I reserve the balance of my time.
Mr. VARGAS. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in support of H.R. 692, the China Exchange Rate
Transparency Act, sponsored by Representative Meuser.
China has a history of devaluing its currency against the U.S.
dollar, making its exports unfairly cheap and harming American small
businesses. One way to confront this is to impose greater
accountability on China through the International Monetary Fund.
This bill would require the U.S. to press the IMF to report on the
impact of China's exchange rate policies on key IMF tools and consider
whether China has been a responsible partner in the international
monetary system when evaluating China's voting power at the IMF.
While these are sensible actions that Congress can take to prevent
China from using its currency as an economic weapon, they seem like a
small step given the big threat. I don't mean solely the very real
threat from an aggressive China. I mean, the threat from Donald Trump,
whose comments and actions are all designed to weaken America's power
on the global stage.
Trump is withdrawing America from global organizations such as the
World Health Organization and parts of the United Nations. Trump is
attacking our allies like Colombia and Canada, making our friends
question whether they are better off in a world with America in the
lead.
Trump is starting what even The Wall Street Journal calls is the
dumbest trade war ever, driving our partners

[[Page H598]]

away from our markets and the U.S. dollar. He and his co-president,
Elon Musk, are illegally and unilaterally ending America's foreign aid
programs, causing a disaster for the recipients of that support, but
also creating a mammoth void which China will step in and fill.
Perhaps worst of all, President Trump is signaling that America will
abandon Ukraine and Taiwan, telling the globe that we are an unreliable
partner, especially as a security partner, regardless of law and treaty
to the contrary.
Mr. Speaker, I am here to tell Mr. Trump that we will not stand
silent as you tear down America and America's role in the world.
Mr. Speaker, let us stand up to China at the IMF, but if, as our
majority is signaling, we should adopt Trump's aggressive isolationist
policies, then we are giving up the globe to a China that is more than
happy to step into our void. That reduces this bill to nothing more
than a hollow gesture.
Mr. Speaker, I will urge my colleagues to support this bill, and I
reserve the balance of my time.
The SPEAKER pro tempore. Members are reminded to refrain from
engaging in personalities toward the President.
Mr. HILL of Arkansas. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I thank my friend from California (Mr. Vargas) for his
remarks, but I will point out to him that here on this House floor
today, Mr. Speaker, on both sides of the aisle, we are talking about
how to improve oversight through the multilateral process against some
countries such as China who don't always have the best interests at
heart, both in the trade market and in economic affairs in the country.
I believe that our recently elected, recently inaugurated President
absolutely knows how to help hold them accountable. These are the exact
kind of tools that will strengthen the hand of our new Treasury
Secretary Scott Bessent as he thinks about going to multilateral
meetings. These will strengthen the hand of our hopefully soon-to-be-
confirmed colleague at the United Nations.
We are here on the House floor today to talk about how we can
strengthen American leadership across the globe. One way to do that is
to counter China's attempt to manipulate world's rules.
Mr. Speaker, I yield 3 minutes to the gentleman from Pennsylvania
(Mr. Meuser), to describe its benefit.
Mr. MEUSER. Mr. Speaker, I thank my very good friend, Chairman Hill,
for his leadership.
Mr. Speaker, I rise in support of my legislation, the China Exchange
Rate Transparency Act, H.R. 692, a bipartisan bill supported by my
colleagues on both sides of the aisle.
This legislation directly confronts the People's Republic of China's
very nebulous, opaque, and often manipulative practices in foreign
exchange markets, including their policy of intentionally depreciating
their own currency, which undercuts the competitiveness of U.S. exports
in a random manner that is targeted based upon products in particular
industries.
By mandating the U.S. Executive Director at the International
Monetary Fund 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 in line with our own international trade goals. It
is very reasonable.
During Treasury Secretary Bessent's nomination hearing, he explained
that the United States can leverage foreign exchange rates to make U.S.
exports more competitive; however, achieving this will require every
country to abide by the same exchange rate standards. It is time we, in
fact, 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 singling out China; it is about
ensuring that all IMF members, including China, adhere to the rules
they agreed to. China promised to maintain orderly exchange rate
arrangements without manipulation. It is our job to hold them to that
promise 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 economic
system.
I strongly urge my colleagues to support the China Exchange Rate
Transparency Act, H.R. 692, which did pass overwhelmingly last Congress
by a vote of 379-1.
This legislation is a stand for accountability in international
finance, fair trade practices, and the stability of a global economy.
It is very important, and now with the Secretary of the Treasury,
Scott Bessent, this will be an added tool for somebody strong and tough
like he to utilize to create this economic trade stability and
fairness, particularly with China.
Mr. VARGAS. Mr. Speaker, I reserve the balance of my time.
Mr. HILL of Arkansas. Mr. Speaker, I yield 2 minutes to the gentleman
from Florida (Mr. Haridopolos), one of the newest members on the House
Financial Services Committee, the committee whip.
Mr. HARIDOPOLOS. Mr. Speaker, as a new Member of Congress, I am
honored to be on the floor today to support this good bill.
For decades, it has been suspected that China manipulates its
exchange rate to keep the dollar value of their currency artificially
low.
Why do they do this? To simply manipulate the market, to encourage
exports and discourage imports, tipping the scales in their favor. That
is not free trade, nor is it fair trade.
Even the World Trade Organization and the International Monetary Fund
both prohibit the use of currency manipulation to gain trade
advantages.
However, like so many other issues, the Chinese Communist Party's
lack of transparency on this issue has been a roadblock to taking
action to end this unfair practice.

{time} 1645

Let's bring their trade practices into the sunlight. This brilliant
bill by my colleague from Pennsylvania, Mr. Meuser, who chairs the
Financial Services Committee's Oversight and Investigations
Subcommittee, will require Treasury to push IMF members to take China's
lack of transparency into account when considering China's shareholding
at the Fund.
Mr. Speaker, I urge my colleagues to support this good bill as a step
forward toward fairer trade with the Communist dictatorship.
Mr. VARGAS. Mr. Speaker, I yield myself the balance of my time to
close.
China has been accused of manipulating its currency to expand both
its economy and global influence. Concerns about this include its
effects on American interests at international institutions like the
International Monetary Fund. This bill proposes a way to address that,
and I support it.
I reiterate my concerns, however, that to do so in light of President
Trump's efforts to defy the law, Congress, and the Constitution by
ending our foreign aid programs, withdrawing from global institutions,
and attacking our allies is folly. In order to actually stand against
Chinese aggression, one must stand up against our own President's
aggression and his malign policies.
Mr. Speaker, again, I urge my colleagues to support this bill, and I
yield back the balance of my time.
The SPEAKER pro tempore. Members are reminded to refrain from
engaging in personalities toward the President.
Mr. HILL of Arkansas. Mr. Speaker, I yield myself the balance of my
time to close. I thank Mr. Meuser for his hard work on this bill.
To friends on both sides of the aisle, these are both significant
reform efforts in the IMF to improve transparency and particularly for
what we have seen over the years as a lack of being willing to play by
the multilateral rules that all large developed economies have been
doing. Therefore, I really support these bills.
Mr. Speaker, I urge my colleagues to support H.R. 692, and I yield
back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Arkansas (Mr. Hill) that the House suspend the rules and
pass the bill, H.R. 692, as amended.
The question was taken.

[[Page H599]]

The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Mr. HILL OF Arkansas. Mr. 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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