[Pages H595-H596]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              CHINESE CURRENCY ACCOUNTABILITY ACT OF 2025

  Mr. HILL of Arkansas. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 386) to require the United States Governor of, and 
the United States Executive Director at, the International Monetary 
Fund to oppose an increase in the weight of the Chinese renminbi in the 
Special Drawing Rights basket of the Fund, and for other purposes.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                                H.R. 386

       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 ``Chinese Currency 
     Accountability Act of 2025''.

     SEC. 2. OPPOSITION OF THE UNITED STATES TO AN INCREASE IN THE 
                   WEIGHT OF THE CHINESE RENMINBI IN THE SPECIAL 
                   DRAWING RIGHTS BASKET OF THE INTERNATIONAL 
                   MONETARY FUND.

       The Secretary of the Treasury shall instruct the United 
     States Governor of, and the United States Executive Director 
     at, the International Monetary Fund to use the voice and vote 
     of the United States to oppose any increase in the weight of 
     the Chinese renminbi in the basket of currencies used to 
     determine the value of Special Drawing Rights, unless the 
     Secretary of the Treasury has submitted to the Committee on 
     Financial Services of the House of Representatives and the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate a written report which includes a certification that--
       (1) the People's Republic of China is in compliance with 
     all its obligations under Article VIII of the Articles of 
     Agreement of the Fund;
       (2) in the preceding 12 months, there has not been a report 
     submitted under section 3005 of the Omnibus Trade and 
     Competitiveness Act of 1988 or section 701 of the Trade 
     Facilitation and Trade Enforcement Act of 2015 in which the 
     People's Republic of China has been found to have manipulated 
     its currency; and
       (3) the People's Republic of China adheres to the rules and 
     principles of the Paris Club and the OECD Arrangement on 
     Officially Supported Export Credits.

     SEC. 3. SUNSET.

       Section 2 shall have no force or effect beginning 10 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 strong support of H.R. 386, the Chinese 
Currency Accountability Act.
  I thank my good friend, the gentleman from Ohio (Mr. Davidson), for 
sponsoring this important legislation.
  As chairman of the House Financial Services Committee in this 
Congress, I am delighted that Mr. Davidson has assumed the chairmanship 
on our Subcommittee on National Security, Illicit Finance, and 
International Financial Institutions.
  The Chinese Currency Accountability Act is not a new initiative. It 
passed the House under suspension of the rules last year after our 
committee reported it unanimously to the full House.
  This bill is important to limit China's influence over one of our 
most crucial international, multilateral organizations. The 
International Monetary Fund, the IMF, acts as the world's critical 
lender to nations, particularly those heavily indebted, to handle 
critical balance of payments financing. It conducts its business 
through Special Drawing Rights, or SDRs.
  SDRs not only serve as a unit of account for the IMF, but they also 
act as a reserve asset on the balance sheet of central banks and, as 
such, SDR assets earn interest.
  Prior to 2016, both the value and the interest rate of the SDR was 
determined by a basket of currencies issued by the independent central 
banks of the world and overseen by democratic governments. These 
currencies were the U.S. dollar, the euro, the Japanese yen, and the 
pound sterling in the United Kingdom.
  In 2016, the IMF then added the Chinese renminbi to the basket, even 
though the use of the renminbi was miniscule and the People's Bank of 
China is controlled by the Chinese Communist Party. Mr. Speaker, I 
don't believe that the rule of law in China merits this inclusion.
  The decision in 2022 by the IMF to increase the weight of the Chinese 
currency in that basket was equally shocking. Not only did China's 
political control of the central bank remain unchanged, but the IMF 
also knew that China's predatory lending through its Belt and Road 
predatory lending program to emerging markets was threatening the 
future of the IMF's own programs.
  The fact that it went ahead and boosted China's weight in that 
important SDR basket at the Fund is an embarrassment. Now the IMF finds 
itself lecturing other countries about central bank independence, but 
it charges them interest that is partially determined by the decisions 
at the People's Bank of China.
  Hopefully, on this House floor, that irony is not lost on any Member 
or any

[[Page H596]]

of the countries on the Board of Directors at the IMF.
  Mr. Davidson's bill would put an end to rewarding China's bad 
behavior. His legislation would require the Treasury Department to 
oppose further increases for Chinese renminbi in the IMF's currency 
basket until the Department of the Treasury certifies that China is in 
compliance with the IMF Articles of Agreement and adheres to the 
lending standards upheld by the world's major creditors.
  In other words, Mr. Speaker, H.R. 386 isn't about holding China to a 
double standard. It means forcing the People's Republic of China to 
follow the same international rules of the road if it wants to enjoy 
the benefits of multilateralism and global leadership.
  Mr. Speaker, I thank my friend Mr. Davidson for this important 
measure. I urge all of my colleagues to support it, 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. 386, the Chinese Currency 
Accountability Act, sponsored by my friend and the gentleman from Ohio 
(Mr. Davidson).
  Mr. Speaker, this bill would require the Secretary of the Treasury to 
oppose a future percentage increase in the weight of China's currency 
in the IMF's international reserve asset known as the Special Drawing 
Rights, or SDRs, unless the Secretary of the Treasury independently 
certifies that China is in compliance with certain obligations to the 
IMF and with other international standards.
  While I support this bill and its intentions, I will note that the 
Treasury Department stresses that, due to confidentiality between the 
IMF and its member countries, it is impossible for the Secretary to 
independently certify that China is complying with the IMF obligations.
  I hope that Representative Davidson and his colleagues will work with 
us to make changes to this bill to ensure that it could be executed as 
intended.
  I also must add that it is enormously ironic that we are passing a 
bill focused on a nation's transparency at a time when President Trump 
is running one of the least transparent governments in our Nation's 
history.
  As the last Trump term starts, we, again, do not have disclosures or 
divestment from the President, meaning we don't know how he is 
personally benefiting from his administration's actions.
  For example, President Trump introduced meme coins for himself and 
his wife, making it possible for any friend or foe with business before 
the President to trade millions in Trump cryptocurrency without any 
identification and verification.
  Further, Trump's co-president, Elon Musk, is also refusing to 
publicly disclose and divest from his conflicted investments, despite 
being a fake employee of the government who has access to millions of 
Americans' taxpayer dollars and personally identifiable information. It 
is transparency for the average American, but not for Trump and his 
oligarchs.
  To fight corruption and kleptocracy, it is vital for the United 
States to have transparency in government. If we expect it of others, 
then we should model it and demand it for ourselves.
  Mr. Speaker, I urge my colleagues to support this bill, and I reserve 
the balance of my time.
  Mr. HILL of Arkansas. Mr. Speaker, I yield 2 minutes to the gentleman 
from Ohio (Mr. Davidson), the bill's sponsor and author.
  Mr. DAVIDSON. Mr. Speaker, I rise today to urge this body to support 
H.R. 386, the Chinese Currency Accountability Act of 2025.
  Mr. Speaker, this critical bill ensures that the United States stands 
firm against increasing the weight of the Chinese renminbi in the 
International Monetary Fund's Special Drawing Rights, their currency 
basket, unless China changes course.
  Frankly, China operates the Belt and Road Initiative in competition 
with the IMF, so this is a very modest proposal and very incremental. 
China should not even participate in the IMF while they are working to 
actually undermine the IMF with their alternative, the Belt and Road 
Initiative.
  Additionally, the Special Drawing Rights are a useful global reserve 
asset, providing IMF members with claims on five major currencies: the 
dollar, the euro, now the renminbi, but also the Japanese yen and the 
British pound.
  Most notably, this currency basket influences the IMF lending rate. 
All other central banks participating are market based. In 2016, the 
IMF decided they were going to include a nonmarket-based currency, the 
Chinese renminbi.
  More concerning, in 2022, as Chairman Hill pointed out, the IMF 
actually increased the weight to 12.8 percent, making it the third most 
prominent currency, even though China lacks independence.
  This bill directs the U.S. Secretary of the Treasury to oppose any 
further increase in the renminbi's weight unless China complies with 
its IMF obligations, that it is found to not be a currency manipulator, 
and that it adheres to the Paris Club and OECD rules on export credits.
  None of this undermines China's growth or sovereignty. Instead, it 
points them to the path that they already promised to pursue when they 
chose to participate.
  Further, when China joined the World Trade Organization, they pledged 
to become a market economy. While they made early progress, China has 
ceased such efforts, and they have instead worked to undermine Western 
institutions like the International Monetary Fund.
  This bill has bipartisan support, having passed the House last 
September.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. HILL of Arkansas. Mr. Speaker, I yield an additional 30 seconds 
to the gentleman from Ohio.
  Mr. DAVIDSON. Finally, the CBO estimates it will have no significant 
impact on spending or revenue. Our foreign policy and financial 
institutions should advance our interests, not undermine them.
  Mr. Speaker, I urge my colleagues to support this bill.

                              {time}  1630

  Mr. VARGAS. Mr. Speaker, I yield myself the balance of my time.
  Mr. Speaker, as China expands both its economy and global influence, 
it has been accused of manipulating its currency. This includes the use 
of its currency at international institutions like the IMF.
  This bill would empower the Treasury Department to address that 
issue, which is a laudable goal. We should fight for the same type of 
transparency for our own government and government officials, including 
President Donald Trump and co-president Elon Musk.
  It is a good bill, and I support it.
  Mr. Speaker, I urge my colleagues to support this bill, and I yield 
back the balance of my time.
  Mr. HILL of Arkansas. Mr. Speaker, I yield myself the balance of my 
time.
  Mr. Speaker, I will echo the comments of my friend from Ohio (Mr. 
Davidson) about the fact that China is not a full market economy. It 
has not met its obligations to act as a good sovereign on settling 
creditor concerns. The belt and road policies of China have deeply 
indebted so many global south nations in such a way that the IMF does 
not have a full picture of their financial status in order to have 
access to the IMF's lending authorities.
  This is just another way, Mr. Speaker, for this House to, I think, 
make better policy and that we ask the IMF to have full transparency on 
what is happening in China and their participation with the Fund. One 
way to do that is to accomplish the worthy objectives here in H.R. 386. 
I ask all my colleagues on both sides of the aisle to support this 
bill.
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Taylor). 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. 386.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

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