Normal Trade Relations with China

Strategic Insights -

The United States and China initiated trade relations in 1980, with China receiving non-discriminatory treatment through annual waivers of the Trade Act of 1974. Despite significant expansion in trade between the two nations, China has maintained restrictions on market access for U.S. exports and investment. The U.S. and China agreed on terms and conditions for China's accession to the World Trade Organization (WTO) in 1999, paving the way for China's membership in the WTO on December 11, 2001. As a result, the President has determined that chapter 1 of title IV of the Trade Act should no longer apply to China, and nondiscriminatory treatment (normal trade relations treatment) will be extended to the products of China.

Key Takeaways:

  • The United States and China opened trade relations in 1980, with China receiving non-discriminatory treatment through annual waivers of the Trade Act of 1974.
  • Trade between the two nations has expanded significantly since 1980, despite China's maintenance of restrictions on market access for U.S. exports and investment.
  • The U.S. and China agreed on terms and conditions for China's accession to the WTO in 1999, which paves the way for China's membership in the WTO.
  • China became a WTO member on December 11, 2001, after the Ministerial Conference of the WTO approved the terms and conditions for China's accession.
  • The President has determined that chapter 1 of title IV of the Trade Act should no longer apply to China, and nondiscriminatory treatment (normal trade relations treatment) will be extended to the products of China.
  • The extension of nondiscriminatory treatment to the products of China will be effective as of January 1, 2002.

Statistics:

  • 1980: The year in which the United States and China opened trade relations.
  • 1999: The year in which the U.S. and China agreed on terms and conditions for China's accession to the WTO.
  • 2001: The year in which China became a WTO member on December 11.
  • January 1, 2002: The effective date for the extension of nondiscriminatory treatment to the products of China.

Sources:

  • Public Law 106-286, 114 Stat. 881.
  • The Trade Act of 1974 (19 U.S.C. 2432).
  • The World Trade Organization (WTO).