2271 112th CONGRESS
H. R. 2271
To prohibit the awarding of contracts by the
Federal Government to Chinese entities until the People's Republic of China signs
the WTO Agreement on Government Procurement.IN THE HOUSE
June 22, 2011
ROYCE (for himself and Mr. CONNOLLY of Virginia) introduced the following bill;
which was referred to the Committee on Oversight and Government Reform
To prohibit the awarding of contracts by the Federal
Government to Chinese entities until the People's Republic of China signs the
WTO Agreement on Government Procurement.
Be it enacted
by the Senate and House of Representatives of the United States of America in
SECTION 1. FINDINGS.
finds the following:
(1) The Agreement on Government Procurement
(GPA) is a plurilateral agreement among 41 members of the World Trade Organization
(WTO) that provides reciprocal market access for certain government procurement
(2) Members of the GPA submit schedules containing
lists of covered government entities, as well as goods and services that are open
to bidding by firms of the other GPA members.
People's Republic of China became an official observer of the GPA committee in
February 2002, and formally applied for GPA membership in December 2007, when
it submitted its first offer.
(4) The United States,
along with several other major GPA parties, deemed China's accession bid unacceptable.
(5) China submitted a follow-up bid to join the GPA on July 9, 2010, that was
viewed as an improvement from its previous offer, but was ultimately unacceptable
to all GPA members, in part because the Chinese offer excluded purchases by local
and provincial governments as well as state-owned enterprises.
(6) Chinese entities continue to be awarded United States Government contracts,
despite not being a party to the GPA.
(7) Concerns remain
over China's alleged discriminatory procurement practices and policies against
(8) China estimated its public procurement
market at $110,000,000,000 in 2009.
(9) The United States
Department of Commerce estimated the Chinese public procurement market could be
as high as $200,000,000,000 or more in its report entitled `Doing Business in
China, 2011 Country Commercial Guide for United States Companies'.
(10) The European Chamber of Commerce's report, `Public Procurement in China:
European Business Experiences Competing for Public Contracts in China' found that
`China's overall public procurement market could be worth over 7 trillion RMB.
FIEs (Foreign Invested Enterprise) competing for this market face numerous significant
(11) Congress urges the Chinese
Government to end these discriminatory practices against United States businesses.
2. PROHIBITION ON GOVERNMENT CONTRACTS.
(a) Prohibition- No department
or agency of the United States may enter into any contract with any Chinese entity
for the procurement of goods or services until the Peoples Republic of China becomes
a signatory to the Agreement on Government Procurement.
In this section:
(1) AGREEMENT ON GOVERNMENT PROCUREMENT-
The term `Agreement on Government Procurement' means the Agreement on Government
Procurement referred to in section 101(d)(17) of the Uruguay Round Agreements
Act (19 U.S.C. 3511(d)(17).
(2) CHINESE ENTITY- The term
`Chinese entity' means any entity--
(A) which is
located in the People's Republic of China; and
(B) the majority of the equity or other ownership interests of which are owned
or controlled by the Government of the People's Republic of China or by Chinese
SEC. 3. EFFECTIVE DATE.
2 applies to contracts entered into on or after the date of the enactment of this