Senate Approves Permanent Normal Trade Relations with China

The U.S. Senate has taken a crucial step towards opening China's massive market to American goods and services, paving the way for economic and political reforms in the country. The approval of Permanent Normal Trade Relations (PNTR) with China was hailed by business leaders as a major victory, with Harold McGraw III, chairman and CEO of The McGraw-Hill Companies, calling it a "monumental step" that will ensure a level playing field for American companies. The move is also expected to boost U.S. exports and create new opportunities for American workers.

Key Takeaways:

• The U.S. Senate approved Permanent Normal Trade Relations (PNTR) with China, marking a significant step towards opening the country's vast market to American goods and services.
• Harold McGraw III, chairman and CEO of The McGraw-Hill Companies, sees China's accession into the WTO as a critical step in holding the country to the same set of trading rules as the rest of the world.
• China's entrance into the WTO is expected to put an end to piracy of American intellectual property, with estimated losses of $1.7 billion in 1999 alone.
• The approval of PNTR with China is seen as a strategic move by the U.S. to promote economic and political reforms in the country, with McGraw highlighting the importance of engagement with China on human rights issues.
• The McGraw-Hill Companies views China's participation in the world economy as a key factor in promoting a constructive force in Asia, with McGraw stating that further engagement will mean further changes in the Chinese system.

Statistics:

• China's market size is estimated to be 1.2 billion people.
• Book piracy alone cost publishers $128 million in 1999.
• Estimated losses from piracy of software, films, CDs, and other properties is $1.7 billion in 1999.
• The McGraw-Hill Companies sales in 1999 were $4.0 billion.
• The corporation has more than 400 offices in 32 countries.

Sources:

• Business Wire, "The McGraw-Hill Companies"
• New York Times, September 19, 2000 ("Senate Approves Permanent Normal Trade Relations with China")
• The McGraw-Hill Companies Press Release, September 19, 2000