Fair Trade with China Act of 2005

Fair Trade with China Act of 2005 - Amends the Tariff Act of 1930 to apply its countervailing duty requirements to nonmarket economy countries.

Amends the Trade Act of 1974, with respect to enforcement of U.S. rights under trade agreements and response to certain foreign trade practices, to include unjustifiable acts, policies, or practices which involve currency manipulation.

Requires the U.S. Trade Representative (USTR) to investigate the currency practices of the People's Republic of China (PRC), make applicable determinations, and implement any appropriate action.

Requires the USTR to: (1) first initiate consultations with each foreign country identified as engaging in priority foreign country practices to reach a satisfactory resolution of such practices; and (2) then investigate the practices in question if a satisfactory resolution has not been reached within a specified period.

Requires the USTR to identify and report to Congress on such PRC priority foreign trade practices.

Amends the Tariff Act of 1930 to repeal the requirement that the administering authority direct the Customs Service to allow an importer to opt to post a bond or security, until completion of the review, in lieu of a cash deposit for each entry of the subject merchandise (bonding privileges). (Thus, requires cash deposits for such entries).

Requires) the U.S. International Trade Commission to study and report to Congress on how the PRC uses government intervention to promote investment, employment, and exports.

Amends the Exchange Rates and International Economic Policy Coordination Act of 1988 with respect to bilateral negotiations with countries considered to manipulate the rate of exchange between their currency and the U.S. dollar for purposes of preventing effective balance of payments adjustments or gaining unfair competitive advantage in international trade.

Reduces the preconditions for the initiation of negotiations by the Secretary of the Treasury to possession of significant bilateral trade surpluses with the United States (removing the other current condition of possession of material global current account surpluses).

Declares that a country shall be considered to be manipulating the rate of exchange between its currency and the U.S. dollar if there is a protracted large-scale intervention by an authority to undervalue its currency in the exchange market that prevents effective balance of payments adjustment or gains an unfair competitive advantage over the United States.