From: / Will Leahy, Manager, China Policy
To: / Asia Task Force, China AmChams
I) Legislative Update
II) Consumer Safety Update
III) Senate Banking Hearing on Sovereign Wealth Funds
IV) House Committee on Foreign Affairs Hearing on Yahoo!
I) Legislative Update
House leadership gave further indication this week that a China bill will not be taken up for a vote until 2008. A spokesperson for House Majority Leader Steny Hoyer (D-MD) stated that the Majority Leader holds the “firm” expectation that the House will only move conference reports and appropriations bills to the floor for final passage during December.
This established November 16th as the deadline for passage of new legislation
Following the markup of the Peru Free Trade Agreement earlier today, House Ways and Means Subcommittee on Trade Chairman Sander Levin (D-MI) acknowledged that, given this deadline, the House will likely not have time to consider China legislation this year. Despite a series of hearings on China-related issues, the Ways and Means Committee has yet to introduce legislation.
Levin did note, however, that he hopes to introduce comprehensive China legislation before the Winter Recess.Sources indicate that the Ways and Means China bill will likely address issues beyond currency, including language that would:
  • Allow countervailing duties to be imposed on imports from non-market economies (H.R. 1229);
  • Make currency manipulation a countervailable subsidy (H.R. 782 and H.R. 2942); and
  • Reinstate the practice of “zeroing” (H.R. 2714).
In contrast, Senate aides continue to hold open the possibility of Senate action on a China bill in December. The Senate, however, faces an equally busy floor schedule with appropriations, another vote on the State Children’s Health Insurance Program (SCHIP), and conference reports.
Chamber representatives will continue to monitor the legislative situation and will provide analysis accordingly.
II) Consumer Safety Update
The Senate Commerce Committee yesterday passed and sent on to the full Senate the “CPSC Reform Act of 2007” (S. 2045). The bill would, among other provisions, boost funding for the Consumer Product Safety Commission, increase its staff to at least 500 from 400 by 2013, modernize its testing facilities and increase the number of safety inspectors at U.S. ports. It would also raise penalties for violating safety laws to $100 million from a $1.85 million maximum.
Additionally, House Speaker Nancy Pelosi (D-CA) called on Consumer Products Safety Commissioner Nancy Nord to resign stating that Nord did not “understand the gravity of the situation” facing the agency following the spate of recent recalls.
The House will likely act in the coming months on broad consumer safety legislation of its own, using H.R. 3610 a bill introduced by House Energy and Commerce Committee chair John Dingell (D-MI) as a template. Members of the Energy and Commerce Committee stated in mid-October that the full committee will move legislation before the end of the year, following some additional technical work and a hearing before the health subcommittee, chaired by Rep. Frank Pallone (D-NJ).
In Beijing, the head of China’s General Administration of Quality Supervision, Inspection and Quarantine announced that Chinese lawmakers are currently working on legislation to standardize food safety practices nationwide. Food safety in China is currently governed by a patchwork of regulations and is overseen by at least six major government agencies. There is, however, no national law addressing food safety.
The legislation has been passed in principle by the standing committee of the State Council, and will be submitted to the National People’s Congress. It is unclear if the proposal refers to completely new legislation or an amendment to existing laws.
III) Senate Banking Hearing on Sovereign Wealth Funds
The Senate Banking Committee will hold a hearing on Wednesday, November 7 at 1:30 p.m. on “Sovereign Wealth Fund Acquisitions and Other Foreign Government Investments in the U.S.: Assessing the Economic and National Security Implications.”
At this point no witnesses have been announced. Chamber staff will continue to monitor and report on any relevant developments.
IV) House Committee on Foreign Affairs Hearing on Yahoo!
The House Committee on Foreign Affairs has announced a hearing at 11 AM on November 6th with executives from Yahoo! Inc. to discuss allegations that the company gave false information to Congress at a February 2006 subcommittee hearing on Internet censorship in China.
The allegations surround testimony provided on the case of Shi Tao, a Chinese journalist who has been sentenced to 10 years in prison for “divulging state secrets abroad.” Human rights groups have documented that Shi’s arrest and sentence largely stem from private information handed over by Yahoo! to Chinese officials.
Shi has appealed the verdict to the Hunan Higher People’s court and is also seeking damages in U.S. federal court against Yahoo! and its Hong Kong-based subsidiary.
More information on the hearing can be found on the Committee web site.
Last week the Committee marked up the “Global Online Freedom Act” (H.R. 275), which was drafted and introduced following the February 2006 subcommittee hearing examining the business practices of American IT companies in China.
This message and its contents are intended solely for the use of the Asia Task Force addressee. If you have received this message in error, please notify the sender immediately.
/ The U.S. Chamber of Commerce's is the world's largest business federation, representing 3 million businesses and organizations of every size, sector, and region.

U.S. Chamber of Commerce | 1615 H Street, NW | Washington, DC20062-2000