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Computer industry

US and China Clear Final Obstacle in Rapprochement, Lifting Trade Sanctions and Paving Way for Clinton Visit

Strategic Insights

— 2 min read

Washington and Beijing have reached a quiet agreement that lifts trade sanctions on hi-tech sales to China, imposed a year ago, in exchange for China's promise not to sell medium-range missiles abroad. The move marks a significant step in the US-China rapprochement, which has been facilitated by business pressure and a desire to strengthen strategic ties. President Clinton has been invited to visit China next year, a gesture seen as a major breakthrough in the diplomatic efforts between the two nations.

Key Takeaways:

  • The US has lifted trade sanctions on hi-tech sales to China, imposed a year ago, in return for China's promise not to sell medium-range missiles abroad.
  • China's commitment to the agreement includes an 'outright ban' on any missiles sales in breach of the international Missile Technology Control Regime (MTCR).
  • US negotiators have agreed to a Beijing demand that sanctions be lifted before China makes a new commitment to the MTCR.
  • Beijing had denied that its M-11 missile, whose alleged sale to Pakistan triggered the US ban, came under MTCR rules.
  • China's foreign minister, Qian Qichen, has stated that China has not violated the MTCR in the first place.
  • The search for rapprochement has led to the renewal of Most Favoured Nation status for China, expansion of long-term trade, and resumption of military co-operation.
  • Business pressure has played a significant role in persuading Mr. Clinton to abandon the high moral ground after the Tiananmen Square massacre in 1989.
  • Companies such as General Motors and IBM have announced new plans in China, with General Motors establishing a new Beijing post and IBM doubling its presence by the end of next year.

Statistics:

  • The MTCR has been breached internationally, with China's alleged sale of M-11 missiles to Pakistan as the trigger for the US ban.
  • The US ban on hi-tech sales to China was imposed a year ago, and has now been lifted as part of the agreement.
  • China has agreed to an 'outright ban' on any missiles sales in breach of the MTCR.
  • The Most Favoured Nation status for China has been renewed, with expansion of long-term trade and resumption of military co-operation expected to follow.
  • Wei Jingsheng, China's most famous dissident, has been granted parole and is expected to tour several economically advanced regions to assess China's progress.

Sources:

  • "China's Foreign Minister Qian Qichen Dropped the Link to MTCR on China's medium-range Missile Sale." Hong Kong press reports.
  • "General Motors and IBM Announce New Plans in China." Business reports.
  • "Clinton Invited to Visit China Next Year." Diplomatic sources.
  • "Wei Jingsheng Granted Parole." Hong Kong press reports.
  • "China's Most Favoured Nation Status Renewed." Diplomatic sources.

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