Watch the latest videos on YouTube.com

| Cryptome DVDs are offered by Cryptome. Donate $25 for two DVDs of the Cryptome 12-and-a-half-years collection of 47,000 files from June 1996 to January 2009 (~6.9 GB). Click Paypal or mail check/MO made out to John Young, 251 West 89th Street, New York, NY 10024. The collection includes all files of cryptome.org, cryptome.info, jya.com, cartome.org, eyeball-series.org and iraq-kill-maim.org, and 23,100 (updated) pages of counter-intelligence dossiers declassified by the US Army Information and Security Command, dating from 1945 to 1985.The DVDs will be sent anywhere worldwide without extra cost.

Web | cryptome.org | cryptome.info | jya.com | eyeball-series.org | cryptome.cn

October 1, 1997

    96-272 F
    CRS Report for Congress

    Received through the CRS Web

    China: U.S. Economic Sanctions

    Updated October 1, 1997

    Dianne E. Rennack
    Analyst in Foreign Policy Legislation
    Foreign Affairs and National Defense Division

    Congressional Research Service
    The Library of Congress

    ABSTRACT

    This paper presents a history of U.S. economic sanctions imposed against the People's
    Republic of China for foreign policy reasons since 1949. It highlights sanctions that are
    currently active and details occasions on which those restrictions have been modified, waived
    or permanently lifted. The paper provides citations for Presidential authority in current law
    and the Administration's issuance of regulations and administrative orders.

    China: U.S. Economic Sanctions

    Summary

    The use of sanctions as a foreign policy tool to bring states into conformity with
    certain international norms, whether on human rights, nonproliferation, aggression,
    or a number of other issues, plays a central and controversial part in current U.S.
    foreign policy debates. Much of the authority to impose, waive, or lift sanctions rests
    with the President. In the case of the People's Republic of China, however, Congress
    has played an active part in constructing the U.S. sanction regime and, given current
    tensions, will probably examine the issue of U.S.-China relations in the coming
    months. To provide a context for such debate, this paper presents a post-World War
    II history of U.S. economic sanctions imposed against the People's Republic of China.
    It highlights sanctions currently active and lists occasions on which those restrictions
    have been waived.

    After more than 20 years of nearly nonexistent U.S.-China relations, the process
    of normalization began in 1971 when trade and travel restrictions were eased. Full
    diplomatic relations were established in 1979, and a trade agreement was reached the
    same year. The following decade was one of increasing, but cautious, cooperation
    and trade.

    Relations deteriorated rapidly in 1989, however, when the Chinese government
    aggressively suppressed a foundling pro-democracy movement. In June, when
    Chinese authorities cracked down on students in Beijing holding peaceful
    demonstrations in Tiananmen Square, the United States began to recraft its policies
    toward China and to consider imposing new sanctions. In the wake of the Tiananmen
    crackdown, the United States suspended arms trade, military exchanges, support in
    international financial institutions, Overseas Private Investment Corporation and
    Trade and Development Agency funding, and export licenses for satellites, U.S.
    Munitions List items and crime control items.

    Since 1989, U.S.-China relations have seesawed between cooperation and
    confrontation. Human rights, arms proliferation, the status of Taiwan and Tibet, and
    the use of prison labor for export goods, all have given cause to continue sanctions.
    As well, trade issues--intellectual property rights and Chinese markets closed by tariffs
    and other restrictions--raise the specter of trade sanctions.

    Contents

    Background.................................................... 2

    Sanctions...................................................... 4

    Table I: Multilateral Development Bank Loans to People's Republic of China on
    Which the United States Abstained, Objected, or Voted "No" ......... 38

    Sources (Endnotes)1............................................. 46

    Portions of this report have been printed in earlier CRS Reports:
    Economic Sanctions Imposed by the United States Against Specific Countries: 1979
    Through 1992, by Erin Day. CRS Report No. 92-631F, August 10, 1992. 654 p.;

    U.S. Economic Sanctions Imposed by the United States Against Specific Countries:
    1979 Through the Present, by Theodor Galdi and Robert Shuey. CRS Report No.
    88-612F, September 9, 1988. 275 p.; and U.S. Economic Sanctions Imposed by the
    United States Against Specific Countries; 1979 Through the Present, by Theodor
    Galdi and Robert Shuey. CRS Report No. 87-949F, December 1, 1987. 246 p.
    1 Endnotes are used in this paper due to technical considerations.

    China: U.S. Economic Sanctions

    CURRENT SANCTIONS

    • Export licenses restricted. Currently in Group D. (See
    January 1, 1965, and March 25, 1996.)

    • Generalized System of Preferences status withheld. (See
    January 1, 1976.)

    • Nuclear trade and cooperation suspended. (See December 16,
    1985.)

    • Arms trade and military exchanges suspended. (See June 5,
    1989.)

    • Support for new MDB loans suspended unless meeting basic
    human needs. (See June 20, 1989.)

    • Overseas Private Investment Corporation and Trade and
    Development Agency activities suspended. (See February 16,
    1990.)

    • Export of items on the Munitions Control List and U.S.
    satellites prohibited. (See February 16, 1990.)

    • Export licenses for crime control and detection equipment
    prohibited. (See February 16, 1990.)

    • Prohibition on certain imports produced by prison labor.
    (See March 23, 1992, August 19, 1992, June 16, 1993, and April
    29, 1996.)

    • Importation of Chinese munitions and ammunition
    prohibited. (See May 28, 1994.)

    • U.S. payments to UNFPA prohibited from being made
    available to programs in China. Payments to UNFPA capped
    in connection with expenditures in China. (See August 23,
    1994.)

    • Procurement contracts with, importation from certain
    Chinese individuals and companies prohibited. (See May 21,
    1997.)

    CRS-2

    Background

    Following its interruption by World War II, when both sides fought the Japanese,
    the Chinese civil war continued until the communists were victorious in the fall of
    1949. While the United States strongly supported the Nationalist government of
    Chiang Kai-Shek in the immediate post-World War II period, this support was
    considerably lessened by the time of the communist victory. The United States did
    not extend diplomatic recognition to the new government of the People's Republic of
    China. In June 1950, the North Korean army invaded South Korea; and in October
    1950, large numbers of Chinese "volunteers" entered the Korean war to fight
    alongside the North Koreans.

    U.S. relations with the People's Republic of China remained extremely hostile
    until July 1969, when the Nixon Administration began a gradual process of
    improvement.1 In May 1973, a U.S. liaison office was established in Beijing.2 On
    January 1, 1979, full-scale diplomatic relations were established with the People's
    Republic of China. Further improvements in U.S.-China relations followed in 1979
    with a settlement on May 11 of financial claims and an agreement on trade relations
    on July 7.3

    The next decade of U.S.-China relations was marked by increasing cooperation
    and trade. Political and economic reforms implemented by Deng Xiaoping were
    welcomed and supported by the United States.

    In April 1989, students in Beijing held peaceful demonstrations in Tiananmen
    Square calling for political liberalization and a dialogue with the leadership. By early
    May, the demonstrations had spread to other cities and the numbers enlarged by
    popular support. Having declared martial law on May 1, 1989, President Yang
    Shangkun ordered troops to Beijing to restore order and on June 3, People's
    Liberation Army troops were deployed in the Square under orders to regain the
    capital. In the course of the crackdown that ensued, hundreds, and perhaps
    thousands, of people were killed or wounded. Massive arrests, executions, and the
    summary imprisonment of demonstrators and sympathizers followed.

    The lead-up to the events in Tiananmen Square and the violent aftermath of the
    peaceful demonstrations were given extensive coverage by the international press.
    Calls for U.S. sanctions against the hardline regime in Beijing and a review of U.S.
    policy were immediate. To express U.S. condemnation of the crackdown, President
    Bush suspended all arms trade, military exchanges, high-level government exchanges,
    and sought postponement of multilateral development bank loans. Congress followed
    that action with legislation restricting export licenses to China for satellites,
    conditionally withholding International Development Association funding, and
    conditionally prohibiting Export-Import Bank support of projects in China. In
    February 1990, Congress passed and the President signed into law extensive
    restrictions on U.S. aid and export licenses to China in the biennial Foreign Relations
    Authorization Act. In the years since, however, these restrictions have been
    substantially modified and weakened.

    CRS-3

    Since the incidents at Tiananmen Square, two issues in particular--the transfer
    of nuclear material and missile proliferation--have attracted U.S. attention and, in
    some cases, have led to the imposition of sanctions. In the 1980s and early 1990s,
    China supplied nuclear material, equipment, technology, and the design for an atomic
    bomb to Pakistan, and also provided nuclear assistance to Iran, Iraq, Algeria, Syria,
    and Russia.4 After years of U.S. encouragement and increasing economic pressures,
    China acceded to the Nuclear Non-Proliferation Treaty (NPT) on March 9, 1992.
    The Central Intelligence Agency reportedly discovered in late 1995, however, that
    China had recently exported ring magnets to Pakistan for use in uranium enrichment.
    Such an export apparently violates the NPT.5

    In the early 1990s, nonproliferation became the paramount issue in U.S.-China
    relations. In June 1991, the United States accused corporations run by the
    government of China of exporting M-11 missile technology to Pakistan, and imposed
    mandatory sanctions. In November 1991, the Chinese Foreign Minister verbally
    agreed to abide by the Missile Technology Control Regime (MTCR), and in February
    1992, he sent the United States a letter reportedly confirming China's intent to abide
    by the export constraints of the sanctions were subsequently lifted on March 23, 1992.

    Concern remained, however, about the transparency of China's arms and
    technology export programs. The list of missiles covered by the MTCR was
    expanded in January 1993 to include all those capable of delivering weapons of mass
    destruction, changes China has not explicitly endorsed. On August 24, 1993, the
    United States again found China to have shipped M-11 missile equipment to Pakistan
    and again imposed sanctions. Those sanctions were lifted on October 4, 1994, after
    the Chinese Foreign Minister signed a pledge not to export particular missiles. New
    intelligence reports surfaced in June 1996 that Pakistan has M-11 nuclear-capable
    missiles that are operational, due to China's shipments.6

    Reports of Chinese missile technology cooperation and transfers to Iran emerged
    in the mid-1980s and did not recede. Other reports have China making transfers
    prohibited by MTCR guidelines to Iran throughout the 1990s, and indicate that
    shipments may have included ingredients for chemical weapons and SCUD missile
    fuel. Still other reports state that China may have transferred prohibited technology
    and goods to North Korea.

    Since 1989, U.S.-China relations have seesawed between cooperation and
    confrontation. Human rights, arms proliferation, the status of Taiwan and Tibet, and
    the use of prison labor for export goods, all have given cause to continue sanctions.
    As well, trade issues--intellectual property rights and markets closed by tariffs and
    other restrictions--raise the specter of trade sanctions.7

    CRS-4

    Sanctions

    EARLY 1949 -- SANCTION:
    RESTRICTED TRADE

    Status: Superseded

    Early in 1949, as the Chinese communists began what was to become their final civil
    war offensive, President Truman, using the authority of the newly enacted Export
    Control Act, began to impose selective controls on trade with China. By March 1950,
    exports to China were as strictly controlled as those to the Soviet Union and Eastern
    Europe. In the immediate aftermath of the outbreak of the Korean War, the controls
    were made even stricter.8

    Authority: Export Control Act of 1949, 63 Stat. 7.

    See January 1, 1965, for new export administration regulations.

    DECEMBER 1950 -- SANCTION:
    TRADE EMBARGO; TRAVEL
    PROHIBITED

    Status: Lifted

    In early December 1950, after China's entry into the Korean War, the Commerce
    Department issued export control regulations effectively embargoing all trade with
    China. In mid-December 1950, the Treasury Department, using the authority of
    section 5(b) of the Trading With the Enemy Act, issued Foreign Assets Control
    Regulations which effectively forbade any financial transactions involving, or on
    behalf of, North Korea and China, including transactions related to travel. The
    regulations also blocked the assets of residents of North Korea and the People's
    Republic of China that were subject to U.S. jurisdiction. The total embargo on
    economic transactions with China continued until July 1969, when a long-term
    gradual loosening of controls over Chinese trade began.9

    Authority: Sec. 5(b) of the Trading With the Enemy Act [P.L. 65-91; 50 U.S.C. App.
    5].

    See May 7, 1971, for modification; and June 10, 1971, June 11, 1971, and
    January 31, 1980, for lifting of sanction.

    SEPTEMBER 1, 1951 -- SANCTION: SUSPENDED MFN
    Status: Lifted
    The Trade Agreements Extension Act of 1951 required the suspension of most

    favored nation (MFN) trade status for all communist countries, except Yugoslavia.

    CRS-5

    Authority: Sec. 5 of the Trade Agreements Extension Act of 1951 [65 Stat. 73];
    implemented by Presidential Proclamation 2935 [16 F.R. 7635]; Trade Agreement
    Letter of August 1, 1951 [16 F.R. 7637].

    See January 3, 1975, for new legislation of sanction and February 1, 1980, for
    suspension of sanction.

    JULY 14, 1952 -- SANCTION:
    SUSPENDED MFN FOR TIBET

    Status: Lifted

    After China's occupation of Tibet in 1952, MFN for Tibet was suspended, eliminating
    the possibility that China could take advantage of the favorable trade status.

    Authority: Sec. 5 of the Trade Agreements Extension Act of 1951 [65 Stat. 73];
    implemented by Presidential Proclamation 2935 [16 F.R. 7635]; Trade Agreement
    Letter [17 F.R. 5413].

    See January 3, 1975, for new legislation on sanction and February 1, 1980, for
    suspension of sanction.

    AUGUST 26, 1955 -- SANCTION:
    BANNED COMMERCIAL ARMS
    TRADE

    Status: Lifted

    The Office of Munitions Control (now the Office of Defense Trade Controls) in the
    Department of State was responsible for drafting and implementing International
    Traffic in Arms Regulations (ITAR), which govern the export of defense articles and
    services. Effective August 26, 1955, the ITAR stated that it was United States policy
    to ban exports of defense articles and services to, and imports from, certain countries
    and areas. The People's Republic of China was one of the countries originally listed,
    but is no longer.10

    Authority: Sec. 414 of the Mutual Security Act of 1954, (68 Stat. 848), 20 F.R.
    6250.

    See March 1980 for modification and June 16, 1981, for lifting of sanction.

    AUGUST 1, 1962 -- SANCTION:
    PROHIBITED AID

    Status: Waived

    The Foreign Assistance Act of 1961 was amended in 1962 to prohibit aid to
    communist countries unless the President certified that it was vital to the national
    security of the United States. The People's Republic of China (and Tibet) was one of
    the countries identified as a communist state.

    CRS-6

    Authority: Sec. 620(f) of the Foreign Assistance Act of 1961 [P.L. 87-195], as
    amended by Sec. 301(d)(3) of the Foreign Assistance Act of 1962 [P.L. 87-565].
    See December 11, 1985, for modification and waiver of sanction.

    JANUARY 6, 1964 -- SANCTION:
    PROHIBITED EXPORT-IMPORT
    BANK PROGRAMS

    Status: Superseded

    The Foreign Assistance Appropriation Act of 1964 prohibited the Export-Import
    Bank from engaging in financing transactions with those communist countries listed
    in section 620(f) of the Foreign Assistance Act of 1961, as amended (including China
    and Tibet), unless the President determined that it was in the national interest and
    reported so to Congress. The prohibition was reenacted annually in subsequent
    foreign aid appropriation legislation.

    In 1968, the Export-Import Bank Act of 1945 was amended to make the ban and
    Presidential waiver authority permanent law. A special waiver is required for any
    transaction of $50 million or more.

    In October 1986, section 2(b)(2) of the Export-Import Bank Act of 1945 was
    amended and restated to prohibit Export-Import Bank guarantees, insurance, or
    credits for any purchase by Marxist-Leninist countries. The People's Republic of
    China was on the list of countries identified as being Marxist-Leninist. In addition,
    Tibet, occupied by Chinese troops since 1952, was on the list.

    Authority: Title III of the Foreign Assistance Appropriation Act of 1964 [P.L.
    88-258]; Title III of the Foreign Assistance and Related Agencies Appropriation Act,
    1965 [P.L. 88-634]; Title III of the Foreign Assistance and Related Agencies
    Appropriation Act, 1966 [P.L. 89-273]; Title III of the Foreign Assistance and
    Related Agencies Appropriation Act, 1967 [P.L. 89-691]; Sec. 2(b)(2) of the Export-
    Import Bank Act of 1945 [P.L. 79-173; 12 U.S.C. 635(b)(2)]; as amended and
    restated by Sec. 8 of the Export-Import Bank Act Amendments of 1986 [P.L. 99472].

    See April 2, 1980, for waiver of sanction.

    See October 15, 1986, for continuation of sanction.

    See September 4, 1981, March 7, 1988, September 29, 1988, September 30,
    1994, April 21, 1995, and April 21, 1995, for one-time waivers, where amount
    exceeds $50 million.

    See February 28, 1996, for modification of sanction.

    CRS-7

    JANUARY 1, 1965 -- SANCTION: EXPORTS RESTRICTED
    Status: Modified

    A completely revised system of export control regulations established country groups
    at various levels of restrictiveness. China was placed in the most severely restricted

    Country Group Z.
    Authority: originally at 15 CFR Part 370; Country Groups are currently at 15 CFR
    Part 785.

    See February 15, 1972, and November 23, 1983, for modification of sanction.

    OCTOBER 22, 1968 -- SANCTION:
    PROHIBITED GOVERNMENT-TO-
    GOVERNMENT ARMS SALES AND TRANSFERS

    Status: Lifted

    Section 3 of the Arms Export Control Act, signed into law on October 22, 1968,
    required that, for a country to become eligible for receiving U.S. defense articles or
    services, the President must certify that to provide such articles or services will
    strengthen U.S. security, promote world peace, the recipient country will be
    transparent about the end-use, the recipient country will guarantee that certain
    security conditions will be maintained, and that the country is otherwise eligible.

    Authority: Sec. 3 of the Arms Export Control Act [P.L. 90-629; 22 U.S.C. 2753].

    See June 12, 1984, for lifting of sanction.

    MAY 7, 1971 -- MODIFIED: TRAVEL PROHIBITION LIFTED

    On April 14, 1971, President Nixon announced changes in trade and travel restrictions
    with China. Effective May 7, 1971, foreign assets control regulations prohibiting
    currency transactions with China, including those related to travel, were lifted. Other
    changes included expedited visa processing for individuals and groups travelling to
    the United States.11 On September 18, 1971, travel restrictions on U.S.-resident
    aliens were also lifted.

    Authority: 31 CFR Part 500 (36 F.R. 8584); 22 CFR 46.3 (36 F.R. 18643).

    See December 1950 for original sanction.

    CRS-8

    JUNE 10, 1971 -- MODIFIED:
    TRANSACTIONS RELATED TO TRADE

    On June 10, 1971, foreign assets regulations were revised to license all transactions
    relating to Chinese merchandise. The new regulations continued to prohibit
    transactions involving merchandise where the country of origin was North Korea or
    North Vietnam.

    Authority: 31 CFR 500.204, 500.544, 500.547 (36 F.R. 11441).

    See December 1950 for original sanction.

    JUNE 11, 1971 -- LIFTED:
    TRADE EMBARGO

    Effective June 11, 1971, nonstrategic products and wheat were allowed to be
    exported to China under general license and, for the first time, commercial imports
    from China were allowed.12

    Authority: 31 CFR Parts 371 and 376 (36 F.R. 11808).

    See December 1950 for original sanction.

    FEBRUARY 15, 1972 -- SANCTION: EXPORTS RESTRICTED
    Status: Modified
    Just before President Nixon's trip, China was placed in export Country Group Y.13
    Authority: Originally at 15 CFR Part 370; Country Groups are currently at 15 CFR

    Part 785.
    See January 1, 1965, for original sanction.
    See April 25, 1980, November 23, 1983, December 9, 1993, and March 31,

    1994, for further modifications of sanction.

    JAN. 3, 1975 -- CONTINUED: RESTRICTED TRADE RELATIONS

    Status: Suspended

    Passage of the Trade Act of 1974 continued the denial of MFN status to China, but
    provided a means of conditionally restoring the favorable trade status. Trade relations
    with nonmarket economies now required that a condition of freedom of emigration
    be met for access to any U.S. government credits, credit and investment guaranties,
    and commercial agreements. The President is required to determine that a country
    does not deny its citizens the right to emigrate and does not impede the process of
    emigration through the imposition of high taxes or fees. Section 402 ties

    CRS-9

    nondiscriminatory treatment of trade to freedom of emigration conditions, and
    requires annual review. The President is required to make either annual
    determinations that waive the freedom of emigration conditions or make semiannual
    determinations that a country is in full compliance with the emigration requirements.

    China's Most Favored Nation (MFN) status had been suspended since 1951.

    Authority: Secs. 401, 402, and 502(b)(1) of the Trade Act of 1974 [P.L. 93-618; 19

    U.S.C. 2431, 2432, and 2462].
    See September 1, 1951, for original sanction; February 1, 1980, for suspension
    of sanction.

    See also May 28, 1993, and May 28, 1994, related to MFN status.

    JANUARY 1, 1976 -- SANCTION:
    GENERALIZED SYSTEM OF
    PREFERENCES STATUS WITHHELD

    Status: Active

    Section 502(b)(1) of the Trade Act of 1974 requires any communist country to meet
    the following conditions for the President to designate it as a "beneficiary developing
    country," to receive preferential treatment under the Generalized System of
    Preferences (GSP):

    * the products of the country receive nondiscriminatory treatment (have met the
    requirements for MFN);

    * the country must be a contracting party to the General Agreement on Tariff
    and Trade (GATT; now World Trade Organization, or WTO), and a member
    of the International Monetary Fund (IMF); and

    * the country must not be "dominated or controlled by international
    communism."

    The above requirements are not waivable. Other waivable conditions in section
    502(b) address the communist country's practices of nationalization, expropriation,
    and seizure of property (paragraph (4)); cooperation in arbitration (paragraph (5));
    harboring international terrorists (paragraph (6)); and support of internationally
    recognized standards of workers rights (paragraph (7)). The withdrawal of MFN
    status in 1951 made China subject to this sanction, effective January 1, 1976.14

    Authority: Title V of the Trade Act of 1974 [P.L. 93-618; 19 U.S.C. 2461-2466].

    CRS-10

    JANUARY 31, 1980 -- LIFTED:
    FOREIGN ASSETS CONTROL

    Effective January 31, 1980, Chinese assets were unblocked under foreign assets
    control regulations.15

    Authority: 31 CFR Part 500 (45 F.R. 7224).
    See December 1950 for original sanction.

    FEBRUARY 1, 1980 -- SUSPENDED:
    RESTRICTION ON TRADE
    RELATIONS

    On October 23, 1979, the President sent to Congress a trade agreement signed by
    both countries on July 7, 1979, an accompanying proclamation and an executive order
    waiving the application of Jackson-Vanik requirements to China. 16 On February 1,
    1980, the trade agreement and MFN status entered into force.

    Trade agreements with nonmarket economy countries must be renewed every
    three years. The agreement with China has been renewed on the required schedule;
    the most recent renewal to extend the agreement was issued by the President on June
    21, 1996.

    MFN status granted to nonmarket economy countries must be renewed annually.
    The waiver for China has been renewed annually since 1980. The President sent the
    most recent recommendation for continuation to Congress on May 29, 1997.

    Authority: Sec. 402(c), (d), and Sec. 405(b)(1)(B) of the Trade Act of 1974 [P.L.
    93-618; 19 U.S.C. 2432(c), (d), and 2435(b)(1)(B)]; Executive Order 12167, October
    23, 1979 (44 F.R. 61167).

    Trade agreement, authority: Presidential Memorandum of December 23, 1982 (47

    F.R. 57653); Memorandum from the President, June 3, 1985;17 Presidential
    Proclamation 5718 of October 2, 1987 (52 F.R. 37275); Presidential Memorandum
    of December 19, 1988 (53 F.R. 51217); Presidential Determination 92-12, January
    31, 1992 (57 F.R. 19077); Presidential Determination 96-33, June 21, 1996 (61 F.R.
    32631).

    MFN extension, authority: Presidential Determination 81-8, June 2, 1981 (46 F.R.
    30797); Presidential Determination 82-17, June 2, 1982 (48 F.R. 3711); Presidential
    Determination 83-7, June 3, 1983 (48 F.R. 26585); Presidential Determination 84-9,
    May 31, 1984 (49 F.R. 24107); Memorandum from the President, June 3, 1985;
    Presidential Determination 86-10, June 3, 1986 (51 F.R. 22057); Presidential
    Determination 87-14, June 2, 1987 (52 F.R. 22431); Presidential Determination 8818,
    June 3, 1988 (53 F.R. 21407); Presidential Determination 89-14, May 31, 1989
    (54 F.R. 26943); Presidential Determination 90-21, May 24, 1990 (55 F.R. 23183);
    Presidential Determination 91-36, May 29, 1991 (56 F.R. 26757); Presidential
    Determination 92-29, June 2, 1992 (57 F.R. 24539); Executive Order 12850, May 28,
    1993 (58 F.R. 31327); Presidential Determination 93-23, May 28, 1993 (58 F.R.
    31329); Presidential Determination 94-26, June 2, 1994 (59 F.R. 31103); Presidential

    CRS-11

    Determination 95-23, June 2, 1995 (60 F.R. 31047); Presidential Determination 9629,
    May 31, 1996 (61 F.R. 29455); Presidential Determination 97-25, May 29, 1997
    (unpublished as of May 30, 1997).

    See September 1, 1951, for original sanction.

    See January 3, 1975, for modification of sanction.

    See also May 28, 1993, and May 28, 1994, related to MFN status.

    MARCH 1980 -- MODIFIED:
    ARMS TRADE BAN

    In March 1980, it was announced that exports to China of nonlethal items with
    military support uses would be licensed on a case-by-case basis. The change in policy
    applied to items such as radar, helicopters, communications and training equipment,
    and trucks.18

    See August 26, 1955, for original sanction, and June 16, 1981, for lifting of
    sanction.

    APRIL 2, 1980 -- WAIVED:
    PROHIBITION ON EXPORTIMPORT
    BANK PROGRAMS

    President Carter determined it was in the national interest for the Export-Import Bank
    to guarantee, insure, extend credit, and participate in the extension of credit in
    connection with the purchase or lease of any product or service by, for use in, or for
    sale or lease to, the People's Republic of China.

    Authority: Sec. 2(b)(2) of the Export-Import Bank Act of 1945, as amended [P.L. 79173;
    12 U.S.C. 635(b)(2)]; Presidential Determination 80-15, April 2, 1980 (45 F.R.
    26017).

    See January 6, 1964, for original sanction.

    See October 15, 1986, for continuation of sanction.

    APRIL 25, 1980 -- MODIFIED:
    RESTRICTIONS ON EXPORTS

    On April 25, 1980, China was reassigned from export country Group Y, with other
    Warsaw Pact countries, to its own group P, with reduced restrictions on dual use
    exports.19

    See January 1, 1965, for original sanction.

    CRS-12

    AUG. 8, 1980 -- MODIFIED: OPIC TRANSACTIONS ALLOWED

    The Overseas Private Investment Corporation is permitted to operate in the People's
    Republic of China if the President determines that such activity is important to the

    U.S. national interest. President Carter made such a determination.
    Authority: Sec. 239(g) (redesignated as subsec. (f) in 1981) of the Foreign Assistance
    Act of 1961 [P.L. 87-195; 22 U.S.C. 2199(f)]; as amended by Public Law 96-327
    [August 8, 1980; 94 Stat. 1026]; Presidential Determination No. 80-25, August 8,
    1980 (45 F.R. 54299).

    JUNE 16, 1981 -- LIFTED:
    BAN ON COMMERCIAL ARMS TRADE

    At the end of a visit to China, Secretary of State Alexander M. Haig, Jr., announced
    that munitions control restrictions against China would be lifted, allowing the sale and
    export of lethal weapons.20

    See August 26, 1955, for original sanction.

    SEPTEMBER 4, 1981 -- WAIVED:
    PROHIBITION ON EXPORT-IMPORT
    BANK PROJECTS

    On September 4, 1981, President Reagan determined that it was in the national
    interest for the Export-Import Bank to extend two credits for $57 million to China in
    connection with purchasing turbine generator components, boiler components, air
    preheaters, and related technology. Section 2(b)(2)(D)(ii) of the Export-Import Bank
    Act of 1945 requires the President to issue a separate determination when loans equal
    or exceed $50 million.

    Authority: Sec. 2(b)(2) of the Export-Import Bank Act of 1945, as amended [P.L.
    79-173; 12 U.S.C. 635(b)(2)]; Presidential Determination 81-12, September 4, 1981
    (46 F.R. 45927).

    See January 6, 1964, for original sanction.

    See October 15, 1986, for continuation of sanction.

    NOVEMBER 23, 1983 -- MODIFIED:
    RESTRICTIONS ON EXPORTS

    On November 23, 1983, China was reassigned to export Country Group V. Controls
    on some exports to China still remain more stringent than to other group V countries.
    As it currently stands, there are "certain commodities, data, and end-uses that may
    require extended review or denial. Of particular concern are exports that would make
    a direct and significant contribution to nuclear weapons and their delivery systems,
    electronic and anti-submarine warfare, intelligence gathering, power projection, and
    air superiority. Licenses may be approved even when the end-user or end-use [is]

    CRS-13

    military. Commodities or data may be approved for export even though they may
    contribute to Chinese military development."21
    Authority: Originally at 15 CFR Part 385.4 [48 F.R. 53064]; Country Groups are
    currently at 15 CFR Part 785.

    See January 1, 1965, for original sanction.

    JUNE 12, 1984 -- LIFTED:
    GOVERNMENT-TO-GOVERNMENT
    ARMS SALES PERMITTED

    The President determined that China was eligible for government-to-government arms
    sales.

    Authority: Sec. 3(a)(1) of the Arms Export Control Act [P.L. 90-629; 22 U.S.C.
    2753].

    See October 22, 1968, for original sanction.

    DECEMBER 11, 1985 -- WAIVED:
    PROHIBITION ON AID

    Legislation was proposed, but did not become law, in 1982, 1983, and 1984, to allow
    the President to waive the prohibition on aid to the list of communist countries in
    section 620(f) of the Foreign Assistance Act.

    Section 1202 of the International Security and Development Cooperation Act of 1985
    amended section 620(f) to allow the temporary removal of a country from the
    prohibitions of that section if the President "finds and promptly reports to Congress
    that: (A) such assistance is vital to the security of the United States; (B) the recipient
    country is not controlled by the international Communist conspiracy; and (C) such
    assistance will further promote the independence of the recipient country from
    international communism."

    On December 11, 1985, Secretary of State George Shultz determined that the
    removal of China and Tibet from the application of section 620(f) was important to
    the national interest.

    Authority: Sec. 620(f) of the Foreign Assistance Act of 1961 [P.L. 87-195], as
    amended by the Sec. 1202 of the International Security and Development
    Cooperation Act of 1985 [P.L. 99-83] [22 U.S.C. 2370]; Department of State Public
    Notice 953 (51 F.R. 1890).

    See August 1, 1962, for original sanction.

    CRS-14

    DECEMBER 16, 1985 -- SANCTION:
    PROHIBITED EXPORTS OF
    NUCLEAR MATERIALS,
    FACILITIES OR COMPONENTS

    Status: Active

    On July 23, 1985, China and the United States signed a bilateral Agreement for
    Cooperation Between the Government of the United States of America and the
    Government of the People's Republic of China Concerning Peaceful Use of Nuclear
    Energy. When Congress took up the matter, it enacted an approval resolution that
    conditioned nuclear cooperation under the agreement on presidential certification of
    certain conditions. No export licenses (including for end-user, transfer, or retransfer)
    would be issued for nuclear material, facilities, or components covered by the
    agreement until the President certified that: (1) reciprocal arrangements ensured all
    goods in question were for peaceful purposes; (2) China had provided additional
    information regarding its nuclear nonproliferation policies and from such information
    it could be concluded that China was not in violation of section 129 of the Atomic
    Energy Act of 1954; and (3) certain terms of the agreement would not prejudice U.S.
    licensing procedures.22

    Authority: Public Law 99-183 (99 Stat. 1174).

    See February 16, 1990, for further sanctions relating to nuclear cooperation.

    OCTOBER 15, 1986 -- SANCTION:
    PROHIBITED EXPORT-IMPORT
    BANK PROGRAMS

    Status: Waived

    Section 8 of the 1986 Export-Import Bank Act amended section 2(b)(2) of the
    Export-Import Bank Act of 1945 to prohibit Export-Import Bank guarantees,
    insurance, or credits for any purchases by Marxist-Leninist countries. In cases
    determined by the President to be in the national interest, the prohibition could be
    waived. The People's Republic of China was on the list of countries identified as
    being Marxist-Leninist. In addition, Tibet, occupied by Chinese troops since 1952,
    was also on the list.

    Authority: Sec. 2(b)(2) of the Export-Import Bank Act of 1945 [P.L. 79-173], as
    amended and restated by Sec. 8 of the Export-Import Bank Act Amendments of 1986

    [P.L. 99-472] [12 U.S.C. 635(b)(2)].
    See January 6, 1964, for original sanction.

    See December 19, 1989, for waiver of sanction.

    See March 7, 1988, September 29, 1988, September 30, 1994, April 21, 1995,
    and April 21, 1995, for one-time waivers where amount exceeds $50 million.

    See February 28, 1996, for modification of sanction.

    CRS-15

    OCTOBER 22, 1987 -- SANCTION SUSPENDED HIGH-TECH
    EXPORTS
    Status: Lifted

    Stating that the move was a proportional response to Chinese sales of Silkworm
    anti-ship missiles to Iran, on October 22, 1987, the Reagan Administration suspended
    the process of gradual liberalization of the sophistication of high-technology items
    that were permitted to be sold to China.23

    See March 9, 1988 for lifting of sanction.

    MARCH 7, 1988 -- WAIVED:
    PROHIBITION ON EXPORTIMPORT
    BANK PROGRAMS

    President Reagan determined that it was in the national interest for the Export-Import
    Bank to extend a $151 million credit to China to allow the purchase of equipment and
    services to build the Shidongkou coal-fired power plant. Section 2(b)(2)(D)(ii) of the
    Export-Import Bank Act of 1945 requires the President to issue a separate
    determination when loans equal or exceed $50 million.

    Authority: Sec. 2(b)(2) of the Export-Import Bank Act of 1945, as amended [P.L.
    79-173; 12 U.S.C. 635(b)(2)]; Presidential Determination 88-11, March 7, 1988 (53

    F.R. 9423).
    See January 6, 1964, for original sanction.

    See October 15, 1986, for continuation of sanction.

    MARCH 9, 1988 -- LIFTED:
    SUSPENSION ON HIGH-TECH
    EXPORTS

    In conjunction with the visit to Washington of Chinese Foreign Minister Wu Xueqian,
    on March 9, 1988, a representative of the State Department announced that the
    Reagan Administration was lifting the suspension of liberalization of rules on sales of
    increasingly sophisticated high-technology items because it was satisfied that China
    was not selling Silkworm missiles to Iran.24

    See March 22, 1987, for original sanction.

    CRS-16

    SEPTEMBER 29, 1988 -- WAIVED:
    PROHIBITION ON EXPORT-IMPORT
    BANK PROGRAMS

    President Reagan determined it was in the national interest for the Export-Import
    Bank to extend an $80 million credit to China to allow the purchase of equipment and
    services to manufacture color television picture tube glass. Section 2(b)(2)(D)(ii) of
    the Export-Import Bank Act of 1945 requires the President to issue a separate
    determination when loans equal or exceed $50 million.

    Authority: Sec. 2(b)(2) of the Export-Import Bank Act of 1945, as amended [P.L.
    79-173; 12 U.S.C. 635(b)(2)]; Presidential Determination 88-25, September 29, 1988
    (53 F.R. 40013).

    See January 6, 1964, for original sanction.

    See October 15, 1986, for continuation of sanction.

    JUNE 5, 1989 -- SANCTION: SUSPENDED ALL ARMS TRADE
    AND MILITARY EXCHANGES

    Status: Modified

    Following the violent attacks on pro-democracy demonstrators in Tiananmen Square
    by Chinese military and security forces, killing and wounding upwards of a thousand,
    President Bush suspended all government-to-government and commercial arms sales
    and military exchanges to express U.S. condemnation of China's actions.25

    Authority: Sec. 38 and Sec. 42 of the Arms Export Control Act [P.L. 90-629; 22

    U.S.C. 2778, 2791]; 22 CFR 126.7.
    See July 7, 1989, October 1989, and December 22, 1992, for modifications of
    sanction.

    JUNE 20, 1989 -- SANCTION: SUSPENDED HIGH-LEVEL
    GOVERNMENT EXCHANGES

    Status: Lifted

    President Bush suspended all high-level exchanges between the U.S. government and
    China. The U.S. action was taken in response to the violent reprisals by Chinese
    authorities against supporters of the pro-democracy movement.26

    See January 1990 for modification and November 30, 1990, for lifting of
    sanction.

    CRS-17

    JUNE 20, 1989 -- SANCTION: POSTPONEMENT OF LOANS
    FROM MDBS

    Status: Active

    President Bush also indicated the United States would seek a postponement on new
    loans to China from multilateral development banks (MDB).27

    See January 1990 for modification of sanction.
    See Table I (p. 38) for one-time events related to this sanction.

    JULY 7, 1989 -- MODIFIED:
    SUSPENSION ON ARMS SALES

    The State Department waived the suspension on government and commercial arms
    sales when it authorized the sale of four Boeing 757-200 commercial jets with
    navigation systems capable of being converted for military uses.28

    Authority: Sec. 38 and Sec. 42 of the Arms Export Control Act [P.L. 90-629; 22

    U.S.C. 2778, 2791].
    See June 5, 1989, for original sanction
    OCTOBER 1989 -- MODIFIED:
    SUSPENSION ON MILITARY
    EXCHANGES

    The Bush Administration authorized the return to work of Chinese military officers
    at two U.S. facilities where they were upgrading China's F-8 fighter with U.S.
    avionics.29

    See June 5, 1989, for original sanction.

    OCTOBER 1, 1989 -- SANCTION:
    SALE OF DEFENSE ARTICLES
    TO THIRD COUNTRIES
    RESTRICTED

    Status: Expired

    The National Defense Authorization Act, FY1989, prohibited defense articles subject
    to sec. 36(b) of the Arms Export Control Act from being sold to any country that had
    acquired intermediate-range ballistic missiles from China. The legislation provided
    broad waiver authority to the President and was applicable only for FY1989.

    Authority: Sec. 1307 of the National Defense Authorization Act, FY 1989 [Public
    Law 100-456].

    CRS-18

    NOVEMBER 21, 1989 -- SANCTION: WITHHELD FUNDS FOR MDB

    Status: Lifted

    In the foreign aid appropriations act for FY1990, Congress stipulated that $115
    million of the total obligations for the International Development Association (IDA)
    be withheld until January 1, 1990, and released after that date only if the President
    certified to Congress that China had not received any new loans from IDA since June
    27, 1989, or that the loans would support political reforms. A similar provision was
    enacted in the FY1991 appropriations bill (see November 5, 1990).

    Authority: Title I of the Foreign Operations, Export Financing, and Related Programs
    Appropriations Act, 1990 [P.L. 101-167].

    See January 3, 1990, for lifting of sanction.

    NOVEMBER 21, 1989 -- SANCTION: PRO HIBITED EXPOR T
    LICENSES

    Status: Waived

    Sec. 610 of the State Department Appropriations Act, 1990, prohibited the use of
    funds appropriated for the Departments of Commerce, Justice, State, and the
    Judiciary to be used to reinstate or approve export licenses for the launch of U.S.built
    satellites on Soviet- or Chinese-built vehicles. The prohibition on export licenses
    could be terminated if the President certified to Congress that China had made
    progress on political reforms or if the President determined the issuance of licenses
    was in the national interest.

    Authority: Sec. 610 of the Departments of Commerce, Justice, and State, the
    Judiciary, and Related Agencies Appropriations Act, 1990 [P.L. 101-162; 103 Stat.
    1038].

    See December 19, 1989, for waiver of sanction.

    DECEMBER 19, 1989 -- SANCTION: PROHIBITED EXPORT-IMPORT
    BANK FINANCING

    Status: Waived

    Notwithstanding other prohibitions on Export-Import Bank programs with China,
    Congress stipulated that unless certain conditions were met, the Export-Import Bank
    could not provide financing, credit, guarantees, insurance, or reinsurance for any trade
    with China. The sanctions could be waived if the President reported to Congress that
    China had implemented political reforms, including in Tibet, or the President
    determined it was in the national interest.

    CRS-19

    Authority: Sec. 103 of the International Development and Finance Act of 1989 [P.L.
    101-240; 12 U.S.C. 635 note].
    See December 19, 1989, for waiver of sanction.

    DECEMBER 19, 1989 -- WAIVED:
    PROHIBITION ON EXPORTIMPORT
    BANK FINANCING

    On the same day the President signed the International Development and Finance Act
    of 1989, he waived the sanctions against China contained in the Act concerning the
    Export-Import Bank.30

    Authority: Sec. 103(c)(2) of the International Development and Finance Act of 1989

    [P.L. 101-240; 12 U.S.C. 635 note].
    See December 19, 1989, for original sanction.

    DECEMBER 19, 1989 -- WAIVED:
    PROHIBITION ON EXPORT
    LICENSES

    President Bush determined it was in the national interest to issue three export licenses
    to enable the launch of the U.S.-built AUSSAT and AsiaSat satellites on Chinese
    launch vehicles, amounting to about $300 million in business for U.S. firms.31

    Authority: Sec. 610 of the Departments of Commerce, Justice, and State, the
    Judiciary, and Related Agencies Appropriations Act, 1990 [P.L. 101-162; 103 Stat.
    1038].

    See November 21, 1989, for original sanction.

    JANUARY 1990 -- MODIFIED: SUSPENSION ON MDB LOANS

    President Bush reported to Congress that in "January 1990, the Administration
    modified its position for humanitarian reasons and decided that the United States
    would support a limited number of World Bank loans to China that [met] basic human
    needs." The United States supported a $30 million IDA credit for earthquake
    reconstruction in February, and supported additional credit from IDA for agricultural
    development in February and for education in March.32 On May 29, 1990, the World
    Bank approved a $300 million IDA loan for China. The new loan was for planting
    trees and fell within the category of addressing basic human needs, a condition
    attached after the June 1989 deferment on new loans. Two other IDA loans for
    agricultural development projects, totalling $214 million, were made that summer
    with U.S. support.33

    In subsequent years, the United States has supported numerous MDB loans to China,
    considering them as meeting basic human needs. In 1992, the United States
    supported $377 million in World Bank loans and $103.6 million in Asian

    CRS-20

    Development Bank/Asian Development Fund (ADB/ADF) loans to China. In 1993,
    the United States supported $805 million in World Bank loans and $140 million in
    ADB/ADF loans. In 1994, the United States supported $1.62 billion in World Bank
    loans and $318.45 million in ADB/ADF loans. In the first three quarters of 1995, the
    United States supported $274.5 million in World Bank loans and $167 million in
    ADB/ADF loans to China.34

    See June 20, 1989, for original sanction.

    See Table I (p. 38), for record of U.S. abstentions or "no" votes on MDB loans
    to China.

    JANUARY 3, 1990 -- LIFTED: HOLD ON FUNDS FOR MDB

    President Bush certified to Congress that the International Development Association
    (IDA) had not provided any new loans to China since June 27, 1989. Until 1989,
    China had received large amounts of IDA credits. The President's certification
    permitted the United States to pay its contribution of $115 million to IDA in
    November 1990.

    Authority: Presidential Determination 90-6, January 3, 1990 (55 F.R. 595).

    See November 21, 1989, for original sanction.

    FEBRUARY 16, 1990 -- SANCTION: SUS PENDED CERTAI N
    PROGRAMS AND ACTIVITIES

    Status: Modified

    Sec. 902 of the Foreign Relations Authorization Act, Fiscal Years 1990 and 1991,
    codified some steps the President had already taken against China and required the
    imposition of additional sanctions to express U.S. condemnation of the Chinese
    government's actions against pro-democracy demonstrators. The Act required: 1) the
    continued suspension of Overseas Private Investment Corporation insurance,
    reinsurance, financing or guarantees; 2) the suspension of obligated funds for new
    projects by the Trade and Development Agency in China; 3) the continued suspension
    of exports of any defense article on the U.S. Munitions List (USML), except for
    systems and components for civil products not destined for the Chinese military or
    security forces; 4) the prohibition of export licenses for crime control and detection
    equipment; 5) the continued suspension of U.S. satellite exports; 6) the suspension of
    nuclear trade and cooperation with China; and 7) the suspension of and opposition to
    the liberalization of export controls by the Coordinating Committee for Multilateral
    Export Controls (COCOM).

    These sanctions could be terminated in part or wholly if the President reported
    to Congress that China had made progress on implementing political reforms,
    including in Tibet. The President was also given the authority to terminate the
    sanctions if it was determined to be in the national interest.

    CRS-21

    Authority: Sec. 902 of the Foreign Relations Authorization Act, FY1990 and
    FY1991, as amended [P.L. 101-246; 22 U.S.C. 2151 note].

    See December 16, 1985, for sanction relating to nuclear cooperation.

    See April 30, 1991, and June 23, 1996, for one-time termination or waiver of
    sanction. See May 27, 1991, for modification of sanction as it relates to satellite
    technology. See November 1991, and March 31, 1994, relating to COCOM. See
    June 22, 1995, for modification of sanction as it relates to cryptographic items.

    NOVEMBER 5, 1990 -- SANCTION:
    WITHHELD FUNDS FOR MDB

    Status: Modified

    In the appropriations act for FY1991, Congress stipulated that any U.S. contributions
    to the International Development Association (IDA) would be reduced proportionate
    to IDA loans deemed to be for non-basic human needs purposes made to China since
    January 1, 1990. The withheld funds could only be released after the President had
    reported to Congress it was in the national interest to do so. A similar provision was
    contained in the FY1990 appropriations bill (see November 21, 1989).

    The Foreign Operations Appropriations for FY1993 continued similar language
    and added the restriction to U.S. contributions to the Asian Development Bank.

    Authority: Title I of the Foreign Operations, Export Financing, and Related Programs
    Appropriations Act, 1991 [P.L. 101-513; 104 Stat. 1979]; Title I as continued by the
    Further Continuing Appropriations, FY1992, as amended [P.L. 102-145; 105 Stat.
    968]; Title I of the Foreign Operations, Export Financing, and Related Programs
    Appropriations Act, 1993 [P.L. 102-391; 106 Stat. 1634].

    See January 5, 1993, for modification of sanction.

    NOVEMBER 30, 1990 -- LIFTED:
    SUSPENSION ON HIGH-LEVEL
    GOVERNMENT EXCHANGES

    President Bush and Secretary of State James Baker met in Washington with Chinese
    Foreign Minister Qian Qichen. According to press reports, the invitation to Qian was
    in appreciation for China's decision not to vote against resolutions on Iraq in the U.N.
    Security Council.35

    It was revealed in December 1989 that President Bush had sent National Security
    Advisor Brent Scowcroft and Deputy Secretary of State Lawrence Eagleburger to
    Beijing to confer with Chinese government officials in early July and again on
    December 9, 1989. The Administration maintained, however, that these visits did not
    constitute an end to the suspension on high-level government exchanges.36

    See June 20, 1989, for original sanction.

    CRS-22

    APRIL 30, 1991 -- WAIVED:
    PROHIBITION ON U.S.
    SATELLITE EXPORTS

    President Bush informed Congress of his intention to exercise the waiver authority on
    the prohibition of export licenses for AUSSAT and FREJA, allowing the satellites to
    be launched from China. However, the President also upheld the prohibition, in the
    same communication to Congress, against the export of U.S. satellite components
    because of proliferation concerns surrounding a Chinese domestic communications
    satellite, the Dong Fang Hong 3.37

    Authority: Sec. 902(b)(2) of the Foreign Relations Authorization Act, FY1990 and
    FY1991, as amended [P.L. 101-246; 22 U.S.C. 2151 note].

    See February 16, 1990, for original sanction.

    MAY 27, 1991 -- SANCTION:
    PROHIBITED EXPORT OF
    MISSILE-RELATED COMPUTER
    TECHNOLOGY AND
    SATELLITES

    Status: Lifted

    The Administration announced new sanctions against China to restrict the export of
    missile technology, missile-related computers, and satellites. The White House
    indicated that as a matter of policy no new waivers of the ban on export licenses for
    satellites would be issued. In addition, the White House announced its intention to
    deny export licenses for high-speed computers that could be used to test missiles.
    The China Precision Machinery Import-Export Corporation and the China Great Wall
    Industry Corporation were singled out for sanctions.38

    Action was taken about a month later, on June 25, 1991, when the Secretary of State
    issued a public notice stating his determination that the two companies had engaged
    in missile technology proliferation activities. The finding required the imposition of
    sanctions denying export licenses for items covered by the Missile Technology
    Control Regime (MTCR) Annex for two years and the denial of U.S. government
    contracts relating to these same items.

    Authority: Sec. 73(a)(2)(A) of the Arms Export Control Act, as amended [P.L. 90629;
    22 U.S.C. 2797(b)(2)(A)]; Sec. 11B(b)(1)(B)(i) of the Export Administration
    Act of 1979, as amended [P.L. 96-72; 50 U.S.C. App. 2410b(b)(1)(B)(i)];
    Department of State Public Notice 1423 (56 F.R. 32601).

    See March 23, 1992, for waiver of sanction.

    See December 4, 1992, for modification of sanction.

    See December 9, 1993, for lifting of sanction.

    CRS-23

    SEPTEMBER 1, 1991 -- MODIFIED:
    DECONTROL OF CERTAIN
    EXPORT LICENSES

    In its efforts to deregulate export procedures for civilian-use and dual-use goods and
    technologies, COCOM reduced the control list, eliminating licensing requirements for
    low-level items exported to China. The Department of Commerce revised Export
    Administration Regulations to relax some national security controls imposed against
    China, the Soviet Union, and Warsaw Pact countries since the Cold War. In early
    1994, a controversial shipment of gas turbine engines, requiring only a general export
    license and worth as much as $2 billion, made its way to China.39

    Authority: 15 CFR Part 799 (56 F.R. 42824); amended at 56 F.R. 66559 (December
    24, 1991); 57 F.R. 4572 (February 6, 1992); 58 F.R. 33510 (June 18, 1993); 59 F.R.
    30686 (June 15, 1994).

    See January 1, 1965, for original sanction.

    MARCH 23, 1992 -- WAIVED:
    PROHIBITION ON EXPORT OF
    ITEMS ON MTCR AND U.S.
    GOVERNMENT CONTRACTS

    The Bush Administration announced on February 21, 1992, that sanctions, arising
    from a finding that China had engaged in missile proliferation activities, would be
    waived for national security reasons. The decision to waive the sanctions came on
    March 23, 1992, after the Bush Administration received written assurances on
    February 1 that China would comply with the Missile Technology Control Regime
    (MTCR) guidelines.40

    Authority: Sec. 73(e) of the Arms Export Control Act, as amended [P.L. 90-629; 22

    U.S.C. 2797b(e)]; Sec. 11B(b)(5) of the Export Administration Act of 1979, as
    amended [P.L. 96-72; 50 U.S.C. App. 2410b(b)(5)]; Department of State Public
    Notice 1596 (57 F.R. 11768).
    See May 27, 1991, for original sanction.

    MARCH 23, 1992 -- SANCTION:
    PROHIBITION ON CERTAIN
    IMPORTS PRODUCED BY
    PRISON LABOR

    Status: Active

    On January 27, 1992, U.S. Customs Service determined that certain diesel engines
    manufactured by the Golden Horse ("JINMA") Diesel Engine Factory in China were
    being manufactured with the use of convict, forced, and/or indentured labor, and
    could therefore be prohibited from importation into the United States, or seized by
    Customs officials on importation. The prohibition on importation took effect on
    March 23, 1992.

    CRS-24

    Authority: Sec. 307 of the Tariff Act of 1930 [P.L. 71-361; 19 U.S.C. 1307];
    Customs Service T.D. 92-27 (57 F.R. 9469).

    JULY 13, 1992 -- SANCTION: PROHIBITION ON CERTAIN
    IMPORTS PRODUCED BY
    PRISON LABOR

    Status: Lifted

    On April 9, 1992, U.S. Customs Service determined that certain apparel manufactured
    by the Qinghe Hosiery Factory in Beijing were being manufactured with the use of
    convict, forced, and/or indentured labor, and could therefore be prohibited from
    importation into the United States, or seized by Customs officials on importation.
    The prohibition on importation took effect on or before July 13, 1992.

    Authority: Sec. 307 of the Tariff Act of 1930 [P.L. 71-361; 19 U.S.C. 1307];
    Customs Service T.D. 92-66 (57 F.R. 29934).

    See December 18, 1993, for lifting of sanction.

    JULY 13, 1992 -- SANCTION: PROHIBITION ON CERTAIN
    IMPORTS PRODUCED BY PRISON LABOR

    Status: Lifted

    On June 2, 1992, U.S. Customs Service determined that tea marketed by the Red Star
    Tea Farm in China was being produced with the use of convict, forced, and/or
    indentured labor, and could therefore be prohibited from importation into the United
    States, or seized by Customs officials on importation. The prohibition on importation
    took effect on July 13, 1992.

    Authority: Sec. 307 of the Tariff Act of 1930 [P.L. 71-361; 19 U.S.C. 1307];
    Customs Service T.D. 92-67 (57 F.R. 29935).

    See October 5, 1994, for lifting of sanction.

    AUGUST 19, 1992 -- SANCTION:
    PROHIBITION ON CERTAIN
    IMPORTS PRODUCED BY PRISON LABOR

    Status: Active

    On July 22, 1992, U.S. Customs Service determined that certain machine presses or
    mechanical stamping presses manufactured by the Xuzhou Forging and Pressing
    Machine Works in Jiangsu Province were being manufactured with the use of convict,
    forced, and/or indentured labor, and could therefore be prohibited from importation
    into the United States, or seized by Customs officials on importation. The prohibition
    on importation took effect on or before August 19, 1992.

    CRS-25

    Authority: Sec. 307 of the Tariff Act of 1930 [P.L. 71-361; 19 U.S.C. 1307];
    Customs Service T.D. 92-78 (57 F.R. 36688).

    OCTOBER 6, 1992 -- WAIVED:
    PROHIBITED INDIRECT AID

    Since 1987, Congress has continued a provision in foreign aid appropriations banning
    indirect aid to specific countries. The People's Republic of China was added to the
    list of countries for the first time in the Foreign Operations Appropriations Act for
    FY1993. The provision prohibited the use of any funds appropriated under the Act
    for indirect assistance to China and other countries unless the President certified that
    the withholding of funds was contrary to the national interest.

    Each subsequent foreign aid appropriations act has continued this prohibition; in each
    year the President has exercised the waiver authority (see November 4, 1992, for
    waiver). A waiver for FY 1997 was issued on December 6, 1996.

    Authority: Sec. 543 of the Foreign Operations, Export Financing, and Related
    Programs Appropriations Act, 1993 [P.L. 102-391; 106 Stat. 1672]; Sec. 523 of the
    Foreign Operations, Export Financing, and Related Programs Appropriations Act,
    1994 [P.L. 103-87; 107 Stat. 952]; Sec. 523 of the Foreign Operations, Export
    Financing, and Related Programs Appropriations Act, 1995 [P.L. 103-306; 108 Stat.
    1632]; Sec. 523 of the Foreign Operations, Export Financing, and Related Programs
    Appropriations Act, 1996 [P.L. 104-107; 110 Stat. 704]; Sec. 523 of the Foreign
    Operations, Export Financing, and Related Programs Appropriations Act, 1997 [sec.
    101(c) of title I of P.L. 104-208; 110 Stat. 3009].

    See November 4, 1992, for waiver of sanction.

    NOVEMBER 4, 1992 -- WAIVED:
    PROHIBITION ON INDIRECT AID

    Each year since FY1990, the President has determined it is contrary to the national
    interest to withhold funds from international financial institutions and other
    international organizations and programs for providing indirect assistance to certain
    proscribed countries. Waivers have been issued for each of the fiscal years that China
    has been listed.

    Authority: Sec. 543 of the Foreign Operations, Export Financing, and Related
    Programs Appropriations Act, 1993 [P.L. 102-391; 106 Stat. 1672]; Presidential
    Determination 93-4, November 4, 1992 (57 F.R. 55437); Sec. 523 of the Foreign
    Operations, Export Financing, and Related Programs Appropriations Act, 1994 [P.L.
    103-87; 107 Stat. 952]; Presidential Determination 94-4, November 19, 1993 (58 F.R.
    63519); Sec. 523 of the Foreign Operations, Export Financing, and Related Programs
    Appropriations Act, 1995 [P.L. 103-306; 108 Stat. 1632]; Presidential Determination
    95-2, November 1, 1994 (59 F.R. 55979); Sec. 523 of the Foreign Operations, Export
    Financing, and Related Programs Appropriations Act, 1996 [P.L. 104-107; 110 Stat.
    704]; Presidential Determination 96-19, March 19, 1996 (61 F.R. 14235); Presidential
    Determination 97-11A, December 6, 1996 (62 F.R. 299).

    CRS-26

    See October 6, 1992, for original sanction.

    DECEMBER 4, 1992 -- MODIFIED:
    PROHIBITION ON COMPUTER EXPORTS

    It was reported that the Bush Administration was considering approving a license for
    the export of a supercomputer to China. According to the reports, the Department
    of Defense and Arms Control and Disarmament Agency opposed the sale on the
    grounds that the Cray Y-MP2 computer had military applications.41 The computer
    was ultimately licensed for export.

    See May 27, 1991, for original sanction.

    See December 9, 1993, for lifting of sanction.

    DECEMBER 22, 1992 -- MODIFIED:
    SUSPENSION ON ARMS SALES

    The State Department announced it was transferring military articles paid for by China
    prior to the attacks on demonstrators in Tiananmen Square. According to news
    reports, the articles involved Foreign Military Sales (FMS) of avionics for F-8 aircraft,
    equipment for munitions production, four antisubmarine torpedoes, and two radars.42

    Authority: Sec. 38 of the Arms Export Control Act, as amended [P.L. 90-629; 22

    U.S.C. 2778].
    See June 5, 1989, for original sanction.

    JANUARY 5, 1993 -- MODIFIED:
    WITHHOLDING OF FUNDS FOR MDB

    President Bush determined it was in the national interest of the United States to
    obligate funds appropriated for the U.S. contribution to the International
    Development Association during FY1992, which had been withheld because of
    restrictive provisions concerning China.

    Authority: Title I of the Foreign Operations, Export Financing, and Related Programs
    Appropriations Act, 1991 [P.L. 101-513; 104 Stat. 1979]; Title I as continued by Sec.
    119 of the Further Continuing Appropriations, FY1992, as amended [P.L. 102-145;
    105 Stat. 968]; Presidential Determination 93-7, January 5, 1993 (58 F.R.4059).

    See November 5, 1990, for original sanction.

    APRIL 15, 1993 -- WAIVED:
    PROHIBITION ON EXPORTIMPORT
    BANK PROGRAMS

    President Clinton determined that it was in the national interest for the Export-Import
    Bank to extend a loan of $78 million to China in connection with the purchase of U.S.

    CRS-27

    equipment and services for Qidashan Iron Ore Mine and Benefaction Plant in Liaoning
    Province. Section 2(b)(2)(D)(ii) of the Export-Import Bank Act of 1945 requires the
    President to issue a separate determination when loans equal or exceed $50 million.

    Authority: Sec. 2(b)(2) of the Export-Import Bank Act of 1945, as amended [P.L.
    79-173; 12 U.S.C. 635(b)(2)]; Presidential Determination 93-19, April 15, 1993 (58

    F.R. 21889).
    See January 6, 1964, for original sanction.

    See October 15, 1986, for continuation of sanction.

    MAY 28, 1993 -- WAIVED: TRADE RESTRICTED

    President Clinton extended the waiver authority to renew MFN status for China on
    May 28, 1993. At the same time, he issued an executive order requesting the
    Secretary of State to assess whether renewal in 1994 would substantially promote
    freedom of emigration in China, and whether China was complying with a U.S.-China
    agreement signed in 1992 concerning the use of prison labor. The President further
    linked the 1994 renewal of MFN for China to Beijing's adherence to the Universal
    Declaration of Human Rights, release of those detained in connection with the
    Democracy Wall and Tiananmen Square actions of 1989, general prisoner treatment,
    protection of Tibet's religious and cultural heritage, and admission into China of
    international radio and television broadcasts.

    One year later, in the course of considering and extending China's MFN into 1995, the
    President delinked the issue of human rights from trade.43

    Authority: Executive Order 12850, May 28, 1993 (58 F.R. 31327).

    See September 1, 1951, for original sanction; February 1, 1980, for current
    sanction, and May 28, 1994, for continued waiver of sanction.

    JUNE 16, 1993 -- SANCTION: PROHIBITION ON CERTAIN
    IMPORTS PRODUCED BY PRISON LABOR

    Status: Active

    On December 30, 1992, the U.S. Customs Service determined that certain sheepskin
    and leather produced by the Qinghai Hide and Garment Factory in Qinghai Province
    were being manufactured with the use of convict, forced, and/or indentured labor, and
    could therefore be prohibited from importation into the United States, or seized by
    Customs officials on importation. The prohibition on importation took effect on June
    16, 1993.

    Authority: Sec. 307 of the Tariff Act of 1930 [P.L. 71-361; 19 U.S.C. 1307];
    Customs Service T.D. 93-41 (58 F.R. 32746).

    CRS-28

    AUGUST 24, 1993 -- SANCTION:
    PROHIBITED EXPORT OF
    MTCR ITEMS AND U.S.
    GOVERNMENT CONTRACTS

    Status: Waived

    The Under Secretary of State for International Security Affairs determined that
    China's Ministry of Aerospace Industry and Pakistan's Ministry of Defense had
    engaged in missile technology proliferation activities. The finding required the
    imposition of sanctions against the two entities and all their subsidiaries, divisions,
    subunits, or successors, denying export licenses for items covered by the Missile
    Technology Control Regime (MTCR) Annex for two years and the denial of U.S.
    government contracts relating to these same items. The finding further imposed such
    sanctions against Chinese government organizations involved in development or
    production of electronics, space systems or equipment, and military aircraft.

    Authority: Sec. 73(a)(2)(A) of the Arms Export Control Act, as amended [P.L. 90629;
    22 U.S.C. 2797(b)(2)(A)]; Sec. 11B(b)(1)(B)(i) of the Export Administration
    Act of 1979, as amended [P.L. 96-72; 50 U.S.C. App. 2410b(b)(1)(B)(i)];
    Department of State Public Notice 1857 (58 F.R. 45408).

    See November 1, 1994, for waiver of sanction.

    DECEMBER 9, 1993 -- MODIFIED:
    RELAXATION OF LICENSE
    REQUIREMENTS FOR COMPUTERS

    The Department of Commerce issued revised Export Administration Regulations to
    allow for the export to China and other controlled destinations, without a validated
    license, of computers with a data processing speed of up to 67 million theoretical
    operations per second (MTOPS).44

    Authority: 15 CFR Parts 771 and 799 (58 F.R. 64674).

    See May 27, 1991, for original sanction.

    DECEMBER 18, 1993 -- LIFTED:
    PROHIBITION LIFTED ON
    CERTAIN IMPORTS PRODUCED
    BY PRISON LABOR

    On November 15, 1993, U.S. Customs Service determined that apparel manufactured
    by the Qinghe Hosiery Factory in Beijing manufactured with the use of convict,
    forced, and/or indentured labor, was no longer likely to be imported into the United
    States, and that the earlier restriction was no longer necessary. The new
    determination took effect on December 18, 1993.

    Authority: Sec. 307 of the Tariff Act of 1930 [P.L. 71-361; 19 U.S.C. 1307];
    Customs Service T.D. 93-94 (58 F.R. 65235).

    CRS-29

    See July 13, 1992, for original sanction.

    JANUARY 1994 -- MODIFIED:
    RELAXATION OF LICENSE
    REQUIREMENTS FOR FIBER OPTICS,
    TELECOMMUNICATIONS

    COCOM participants reached an agreement to ease licensing requirements on
    advanced telecommunications equipment and fiber optics to China and the former
    Soviet Union.45

    See February 15, 1972, for original sanction.

    MARCH 31, 1994 -- MODIFIED:
    TERMINATION OF COCOM

    The Coordinating Committee for Multilateral Export Controls (COCOM) agreed to
    cease to exist on March 31, 1994. Member nations agreed to retain current control
    lists until a successor organization is established. The Department of Commerce,
    Bureau of Export Administration, established a new general license, GLX, for
    exporters to Country Groups QWY and the People's Republic of China. Clinton
    Administration officials said the new license would not apply to telecommunications
    equipment or lower-level computers.46

    On December 19, 1995, the United States and 27 other countries, including NATO
    participants and Russia, agreed to establish a new multilateral export control
    arrangement. The Wassenaar Arrangement for Export Controls for Conventional
    Arms and Dual-Use Goods and Technologies ("Wassenaar Arrangement") is expected
    to be operational sometime in 1996.47

    Authority: 15 CFR Parts 771 and 774.

    See February 15, 1972, for original sanction.

    MAY 28, 1994 -- SANCTION: IMPORTATION OF MUNITIONS
    AND AMMUNITIO N
    PROHIBITED

    Status: Active

    On May 26, 1994, the President announced that he would renew MFN status for
    China, but delinked the extension from human rights conditions imposed a year
    earlier. He also announced that, effective May 28, importation of munitions and
    ammunition from China would be prohibited. Department of Treasury and
    Department of State regulations provide that "it is the policy of the United states to
    deny licenses and other approvals with respect to defense articles and defense services
    originating in certain countries.... This policy applies to countries or areas with
    respect to which the United States maintains an arms embargo..."48

    CRS-30

    Authority: Secs. 2, 38, 40, 42, and 71 of the Arms Export Control Act [P.L. 90-629];
    22 CFR Part 126.1 (59 F.R. 39312; 59 F.R. 15625; 59 F.R. 42158); 27 CFR Part
    47.52 (50 F.R. 14382; 50 F.R. 42162; 54 F.R. 13681; 57 F.R. 24189; 58 F.R. 47831).

    AUGUST 23, 1994 -- SANCTION:
    PROHIBITED U.S. PAYMENTS
    TO UNFPA FROM BEING MADE
    AVAILABLE TO PROGRAMS IN CHINA

    Status: Active

    The Foreign Operations Appropriations Act for FY1995 prohibited U.S. contributions
    to the United Nations Population Fund (UNFPA) from being made available for
    programs in China. If it was reported that UNFPA spent in excess of $7 million in
    China in 1995, U.S. payments to the UNFPA would be reduced by the amount over
    $7 million. This restriction was enacted again in the FY1996 Foreign Operations
    Appropriations Act. For FY1997, the Foreign Operations Appropriations Act
    required that: 1) no funds are allocated for UNFPA be made available for activities
    in China; 2) FY1997 for UNFPA are limited to $25 million; and 3) U.S. payments to
    UNFPA are reduced by the amount that that organization expends in China.

    Authority: Title I of the Foreign Operations, Export Financing, and Related Programs
    Appropriations Act, 1995 [P.L. 103-306; 108 Stat. 1610]; Title IV of the Foreign
    Operations, Export Financing, and Related Programs Appropriations Act, 1996 [P.L.
    104-107; 110 Stat. 704]; Title IV of the Foreign Operations, Export Financing, and
    Related Programs Appropriations Act, 1997 [sec. 101(c) of title I of Public Law 104208;
    110 Stat. 3009].

    SEPTEMBER 30, 1994 -- WAIVED:
    PROHIBITION ON EXPORT-IMPORT
    BANK PROGRAMS

    President Clinton determined that it was in the national interest for the Export-Import
    Bank to extend $134 million in credit to China to allow the purchase of U.S.
    equipment and services for the expansion of the Ligang power station in Jiangsu
    Province. Section 2(b)(2)(D)(ii) of the Export-Import Bank Act of 1945 requires the
    President to issue a separate determination when loans equal or exceed $50 million.

    Authority: Sec. 2(b)(2) of the Export-Import Bank Act of 1945, as amended [P.L.
    79-173; 12 U.S.C. 635(b)(2)]; Presidential Determination 94-53, March 7, 1988 (59
    F.R. 51483).

    See January 6, 1964, for original sanction.

    See October 15, 1986, for continuation of sanction.

    CRS-31

    OCTOBER 5, 1994 -- LIFTED:
    PROHIBITION LIFTED ON
    CERTAIN IMPORTS PRODUCED
    BY PRISON LABOR

    On September 9, 1994, U.S. Customs Service determined that tea marketed by the
    Red Star Tea Farm in China produced with the use of convict, forced, and/or
    indentured labor, was no longer likely to be imported into the United States, and that
    the earlier restriction was no longer necessary. The new determination took effect on
    October 5, 1994.

    Authority: Sec. 307 of the Tariff Act of 1930 [P.L. 71-361; 19 U.S.C. 1307];
    Customs Service T.D. 94-76 (59 F.R. 50038).

    See July 13, 1992, for original sanction.

    NOVEMBER 1, 1994 -- WAIVED:
    PROHIBITED EXPORT OF
    MTCR ITEMS AND U.S.
    GOVERNMENT CONTRACTS

    The State Department issued a public notice on November 1, 1994, determining that
    it was essential to the national security of the United States to waive the 2-year
    sanctions imposed on August 24, 1993, against the Chinese Ministry of Aerospace
    Industry and all its subsidiaries. Sanctions against the Pakistani Ministry of Defense,
    leveled at the same time, remained in place.

    Authority: Sec. 73(e) of the Arms Export Control Act, as amended [P.L. 90-629; 22

    U.S.C. 2797b(e)]; Sec. 11B(b)(5) of the Export Administration Act of 1979, as
    amended [P.L. 96-72; 50 U.S.C. App. 2410b(b)(5)]; Department of State Public
    Notice 2111, November 1, 1994 (59 F.R. 55522).
    See August 24, 1993, for original sanction.

    APRIL 21, 1995 -- WAIVED:
    PROHIBITION ON EXPORTIMPORT
    BANK PROGRAMS

    President Clinton determined that it was in the national interest for the Export-Import
    Bank to extend a loan of $237 million to China in connection with the purchase of

    U.S. equipment and services for the expansion of a power plant in Dalian, in Liaoning
    Province. Section 2(b)(2)(D)(ii) of the Export-Import Bank Act of 1945 requires the
    President to issue a separate determination when loans equal or exceed $50 million.
    Authority: Sec. 2(b)(2) of the Export-Import Bank Act of 1945, as amended [P.L.
    79-173; 12 U.S.C. 635(b)(2)]; Presidential Determination 95-18, April 21, 1995 (60
    F.R. 22447).

    CRS-32

    See January 6, 1964, for original sanction.
    See October 15, 1986, for continuation of sanction.

    APRIL 21, 1995 -- WAIVED:
    PROHIBITION ON EXPORTIMPORT
    BANK PROGRAMS

    President Clinton determined that it was in the national interest for the Export-Import
    Bank to extend a loan of $278 million to China in connection with the purchase of

    U.S. equipment and services for the construction of a power plant in Dandong, in
    Liaoning Province. Section 2(b)(2)(D)(ii) of the Export-Import Bank Act of 1945
    requires the President to issue a separate determination when loans equal or exceed
    $50 million.

    Authority: Sec. 2(b)(2) of the Export-Import Bank Act of 1945, as amended [P.L.
    79-173; 12 U.S.C. 635(b)(2)]; Presidential Determination 95-19, April 21, 1995 (60
    F.R. 22449).

    See January 6, 1964, for original sanction.

    See October 15, 1986, for continuation of sanction.

    JUNE 22, 1995 -- MODIFIED:
    RESTRICTIONS ON CERTAIN
    CRYPTOGRAPHIC ITEMS LIFTED

    President Clinton informed Congress on June 22, 1995, that it was in the national
    interest of the United States to terminate the suspension of license issuance for export
    to China with respect to certain cryptographic items covered by category XIII on the
    USML. Licenses are required and applications are reviewed on a case-by-case basis
    by the Departments of State and Defense.49

    Authority: Sec. 902(b)(2) of the Foreign Relations Authorization Act, FY1990 and
    FY1991 [P.L. 101-246; 22 U.S.C. 2151 note].

    See February 16, 1990, for original sanction.

    JANUARY 22, 1996 -- MODIFIED: RELAXATION OF LICENSE
    REQUIREMENTS FOR COMPUTERS

    Status: Phasing out (see March 25, 1996).

    On October 6, 1995, President Clinton announced a liberalization of export controls
    on most computers. For China, the former Soviet Union, and certain other countries,
    export controls would focus on computers intended for military and proliferation end-
    use, but would otherwise ease controls on exports for computers to civilian end-use.
    On January 22, 1996, the Department of Commerce issued interim Export
    Administration Regulations (EAR). The new EAR removed the term

    CRS-33

    "supercomputer" from regulations, streamlined the licensing process, and attempted
    to anticipate the technological developments in computers for the next two years.
    Under the new EAR, a new 4-tier system of licensing is established. China, Vietnam,
    Pakistan, countries of Middle East, Maghreb, the former Soviet Union, and several
    Eastern European countries are in Tier 3. Exports to Tier 3 countries are authorized
    under General License G-DEST for computers less than or equal to 2,000 MTOPS.
    Exports of computers greater than 2,000 but less than 7,000 MTOPS are authorized
    under General License G-CTP. Where concerns arise if end-use is military, nuclear,
    chemical, biological or missile related, licenses will be reviewed on a case-by-case
    basis.

    Hong Kong and Taiwan, in Tier 2, are eligible for computers of less than 10,000
    MTOPS without a validated license.

    Authority: 15 CFR Parts 770-776, 785, 787, 799 (61 F.R. 2099).

    See May 27, 1991, for original sanction.

    FEBRUARY 6, 1996 -- WAIVED:
    PROHIBITION ON U.S.
    SATELLITE EXPORTS

    President Clinton reported to Congress his intention to waive the prohibition on
    export licenses for U.S.-origin satellites for China for three projects: COSAT,
    MABUHAY, and CHINASAT.50

    Authority: Sec. 902(b)(2) of the Foreign Relations Authorization Act, FY1990 and
    FY1991, as amended [P.L. 101-246; 22 U.S.C. 2151 note].

    See November 21, 1989, for original sanction.

    FEBRUARY 28, 1996 -- SANCTION
    EXPORT-IMPORT BANK
    FINANCING POSTPONED

    Status: Expired

    Amidst reports that China had shipped ring magnets to Pakistan in 1995, and was
    otherwise supporting Pakistan's nuclear weapons program, the Clinton Administration
    asked the Export-Import Bank to postpone any financing for U.S. companies planning
    to export to China until March 23, 1996.51

    The month-long postponement expired, and the Export-Import Bank was not
    expected to take up any China financing in the month of April.

    Other sanctions are being considered, and U.S.-China negotiations are underway
    regarding future Chinese technology exports.

    Authority: Sec. 2(b)(2) of the Export-Import Bank Act of 1945 [P.L. 79-173; 12
    U.S.C. 635(b)(2)].

    CRS-34

    See April 24, 1996, for reinstatement of sanction.
    See May 10, 1996, for lifting of sanction.

    MARCH 25, 1996 -- MODIFIED:
    EXPORT ADMINISTRATION
    REGULATIONS REWRITTEN

    The Bureau of Export Administration, Department of Commerce, issued new interim
    Export Administration Regulations (EAR) on March 25, 1996, which reorganized the
    licensing process and categories of restricted licenses for exportation. The interim
    regulations go into effect on April 24, 1996, and compliance with the new EAR is
    required no later than November 1, 1996. In the meantime, current licensing
    procedures are reclassified at 15 CFR 770A-799A.

    The new EAR are not intended to change policy, but only to streamline the licensing
    process. In the new EAR, generally, China:

    * is ranked in Tier 3 for computer exports, making it eligible for License
    Exception CTP for computers with a Composite Theoretical Performance
    (CTP) greater than 2,000 MTOPS but less than or equal to 7,000 MTOPS
    (Hong Kong and Taiwan, in Tier 2, are eligible for computers of less than
    10,000 MTOPS with a License Exception CTP). License Exception CTP does
    not authorize export for military end-users and end-uses, and nuclear,
    chemical, biological, or missile end-users and end-uses. Such exports require
    a license and are considered on a case-by-case basis.

    * is placed on the Country Group D list, specifically restricting exports under
    national security controls (D:1 subgroup), chemical and biological controls
    (D:3 subgroup), and missile technology controls (D:4 subgroup).

    * separate from the country group list, is subject to licensing, restricted, and in
    some cases prohibited, for export in the following categories: chemical and
    biological, nuclear nonproliferation, national security, missile technology,
    regional stability, and crime control.

    Authority: 15 CFR 738, 740, 742, 744, 774 (61 F.R. 12714-13041).

    See May 27, 1991, for original sanction. See also January 22, 1996.

    CRS-35

    APRIL 24, 1996 -- SANCTIO EXPORT-IMPORT BAN K
    FINANCING POSTPONED

    Status: Lifted

    Amidst reports that China had shipped ring magnets to Pakistan in 1995, and was
    otherwise supporting Pakistan's nuclear weapons program, the Secretary of State, for
    a second time in as many months, asked the Export-Import Bank to postpone any
    financing for U.S. companies planning to export to China until further notice.52

    Authority: Sec. 2(b)(2) of the Export-Import Bank Act of 1945 [P.L. 79-173; 12
    U.S.C. 635(b)(2)].

    See February 28, 1996, for earlier sanction.

    See May 10, 1996, for lifting of sanction.

    APRIL 29, 1996 -- SANCTION: PROHIBITION ON CERTAIN
    IMPORTS PRODUCED BY PRISON
    LABOR

    Status: Active

    On March 20, 1996, U.S. Customs Service determined that certain iron pipe fittings
    manufactured by the Tianjin Malleable Iron Factory in Tianjin Municipality were being
    manufactured with the use of convict, forced, and/or indentured labor, and could
    therefore be prohibited from importation into the United States, or seized by Customs
    officials on importation. The prohibition on importation took effect on or before
    April 29, 1996.

    Authority: Sec. 307 of the Tariff Act of 1930 [P.L. 71-361; 19 U.S.C. 1307];
    Customs Service T.D. 96-34 (61 F.R. 17956).

    MAY 10, 1996 -- LIFTED:
    EXPORT-IMPORT BANK
    FINANCING POSTPONED

    In a letter to the President of the Export-Import Bank of the United States, The
    Secretary of State revoked his determination that prohibited ExIm financing for U.S.
    companies planning to export to China, effective immediately.53

    Authority: Sec. 2(b)(2) of the Export-Import Bank Act of 1945 [P.L. 79-173; 12
    U.S.C. 635(b)(2)].

    See April 24, 1996, for original sanction.

    CRS-36

    JUNE 23, 1996 --WAIVED:
    PROHIBITION ON U.S.
    SATELLITE EXPORTS

    President Clinton reported to Congress that it was in the national interest to terminate
    the terms prohibiting defense article and satellite exports to China insofar as such
    prohibitions were applicable to the Hughes Asia Pacific Mobile Telecommunications
    project. Export licenses were still required and would be considered on a case-bycase
    basis.54

    Authority: Sec. 902(a) and (b)(2) of the Foreign Relations Authorization Act,
    FY1990 and FY1991 [P.L. 101-246; 22 U.S.C. 2151 note].

    NOVEMBER 11, 1996 -- WAIVED:
    PROHIBITION ON EXPORT-IMPORT
    BANK PROGRAMS

    President Clinton determined that it was in the national interest for the Export-Import
    Bank to extend a loan of about $383 million to China in connection with the purchase
    of the nonnuclear balance of plant equipment and services from the United States for
    the Qinshan III nuclear power plant in Zhejiang Province. Section 2(b)(2)(D)(ii) of
    the Export-Import Bank Act of 1945 requires the President to issue a separate
    determination when loans equal or exceed $50 million. Authority: Sec. 2(b)(2) of the
    Export-Import Bank Act of 1945, as amended [P.L. 79-173; 12 U.S.C. 635(b)(2)];
    Presidential Determination 97-2, November 11, 1996 (61 F.R. 59805).

    See January 6, 1964, for original sanction.

    See October 15, 1986, for continuation of sanction.

    NOVEMBER 11, 1996 -- WAIVED:
    PROHIBITION ON EXPORT-IMPORT
    BANK PROGRAMS

    President Clinton determined that it was in the national interest for the Export-Import
    Bank to extend a loan of about $409 million to China in connection with the purchase
    of U.S. equipment and services for the Yangcheng coal-fired power plant in Shanxi
    Province. Section 2(b)(2)(D)(ii) of the Export-Import Bank Act of 1945 requires the
    President to issue a separate determination when loans equal or exceed $50 million.

    Authority: Sec. 2(b)(2) of the Export-Import Bank Act of 1945, as amended [P.L.
    79-173; 12 U.S.C. 635(b)(2)]; Presidential Determination 97-3, November 11, 1996
    (61 F.R. 59807).

    See January 6, 1964, for original sanction.

    See October 15, 1986, for continuation of sanction.

    CRS-37

    MAY 21, 1997 -- SANCTION: PROCUREMENT CONTRACTS
    WITH, IMPORTATION FROM
    CERTAIN INDIVIDUALS AND
    COMPANIES PROHIBITED

    Status: Active

    The State Department issued a public notice on May 21, 1997, determining that eight
    entities and persons had engaged in chemical weapons proliferation activities that
    required the imposition of sanctions. For one year or more, the U.S. Government is
    prohibited from entering into procurement contracts and importation is prohibited
    from the following Chinese individuals: 1) Liao Minglong, 2) Tian Yi, 3) Chen
    Qingchang, 4) Pan Yongming, and 5) Shao Xingsheng. The same prohibitions apply
    to the following Chinese companies: 1) Nanjing Chemical Industries Group, or NCI;
    2) Jiangsu Yongli Chemical Engineering and Technology Import/Export Corporation;
    and 3) Cheong Yee Limited (of Hong Kong).

    Authority: Sec. 81(a) of the Arms Export Control Act, as amended [P.L. 90-629; 22

    U.S.C. 2798(a)]; Sec. 11C(a) of the Export Administration Act of 1979, as amended
    [P.L. 96-72; 50 U.S.C. App. 2410c(a)]; Department of State Public Notice 2551,
    May 21, 1997 (62 F.R. 28304).

    CRS-38

    TABLE I

    MULTILATERAL DEVELOPMENT BANK LOANS TO PEOPLE'S REPUBLIC OF CHINA
    ON WHICH THE UNITED STATES ABSTAINED, OBJECTED, OR VOTED "NO"

    Date of Bank Project $ Millions U.S. VoteReason Final
    Final Action Disposition

    11/90 ADB Agric. Bank of China 50.0 Abstained HR Approved
    12/90 IBRD Rural Industrial Tech. 50.0 Abstained HR Approved
    12/90 IDA Rural Industrial Tech. 64.3 Abstained HR Approved
    1/91 IBRD Shanghai Industrial Dev. 150.0 Abstained HR Approved
    1/91 IBRD Medium Sized Cities 79.4 Abstained HR Approved
    1/91 IDA Medium Sized Cities 89.0 Abstained HR Approved
    2/91 IDA Key Studies Dev. 131.2 Abstained HR Approved
    3/91 IDA Liaoning Urban Infrast. 70.0 Abstained HR Approved
    4/91 IBRD Jiangsu Prov. Transport 100.0 Abstained HR Approved
    4/91 IDA Jiangsu Prov. Transport 53.6 Abstained HR Approved
    5/91 ADB Shanghai-Nanpu Bridge 67.5 Abstained HR Approved
    5/91 ADB Econ. Reform Planning (TA) 0.8 Abstained HR Approved
    5/91 ADB Toll Bridge Operations (TA) 1.0 Abstained HR Approved
    6/91 ADB Yaogu-Maoming Railway 67.8 Abstained HR Approved
    6/91 ADB Sanmao Railway (TA) 1.0 Abstained HR Approved
    7/91 ADB Xiamen Intl Bank (Eq) 10.3 Abstained HR Approved
    7/91 ADB Shanxi Liulin Thermal Power 65.0 Abstained HR Approved
    7/91 ADB Inst. Dev. Power (TA) 0.5 Abstained HR Approved
    7/91 IBRD Ertan Hydropower 380.0 Abstained HR Approved
    7/91 IFC Guangzhou Peugeot Auto 1.4 Objected HR Approved
    8/91 IDA Shanghai Metro. Transport 60.0 Abstained HR Approved

    Abbreviations and Acronyms:

     ADB--Asian Development Bank GEF--Global Environmental Facility IBRD--International Bank for Reconstruction and Development

     IDA--International Development Association IFC--International Finance Corporation ADF--Asian Development Foundation JSF-Japanese
    Special Fund (of the ADB) TA--Technical Assistance Eq--Equity HR--Human Rights Env--Environment Econ--Economic
    policy considerations

    CRS-39

    Date of Bank Project $ Millions U.S. VoteReason Final
    Final Action Disposition
    9/91 ADB Shanghai Nanpu Bridge 48.0 "No" HR Approved
    9/91 ADB China Assets (Eq) 4.0 Abstained HR Approved
    9/91 IBRD Railways 330.0 Abstained HR Approved
    10/91 IBRD Daguangba-Hainan 30.0 Abstained HR Approved
    10/91 ADB / Industrial & Commercial Bank of 100.8 Abstained HR Approved
    ADF China (loan and TA)
    10/91 IDA Daguangba-Hainan 37.0 Abstained HR Approved
    11/91 ADB / Anging Acrylic Fiber (loan & TA) 105.5 Abstained HR Approved
    ADF
    11/91 IDA Guandong Ag. Dev. 162.0 Abstained HR Approved
    12/91 ADB / Ports Development (loan & TA) 90.0 Abstained HR Approved
    ADF
    1/91 IBRD Yanshi Thermal Power 180.0 Abstained HR Approved
    2/92 IBRD/ Rural Water Supply & Sanitation 110.0 Abstained Env Approved
    IDA
    3/92 IBRD Regional Cement 82.7 "No" HR/Env/ Approved
    Econ
    3/92 ADB Laiwu Iron & Steel Mill 133.0 "No" HR/Econ Approved
    Modern./Expan.
    3/92 ADB Laiwu Iron & Steel Mill restruct. 0.7 "No" HR/Econ Approved
    4/92 IBRD Zouxian Thermal Power 310.0 Abstained HR Approved
    5/92 IBRD Zhejiang Provincial Hwy 220.0 Abstained HR Approved
    6/92 IDA Ship Waste Disposal 15.0 Abstained HR Approved
    6/92 ADB Guang-Meishan Rail 200.0 Abstained HR Approved
    6/92 ADB Guang-Meishan Rail (TA) 0.3 Abstained HR Approved
    6/92 ADB Guangdong Planning Cmsn (TA) 0.3 Abstained HR Approved
    6/92 IFC Shenzen Bicycle Co. 15.0 Abstained HR Approved
    7/92 ADB Shenyang-Benxi Hwy 50.0 Abstained HR Approved
    7/92 ADB Hwy operation, management 0.5 Abstained HR Approved
    improvement
    7/92 ADB Jilin Province Hwy 0.6 Abstained HR Approved
    8/92 ADB Guangdong Tropical Crops 55.0 Abstained HR/Econ Approved
    8/92 ADB Ministry of Ag. 0.8 Abstained HR/Econ Approved

    CRS-40

    Date of Bank Project $ Millions U.S. VoteReason Final
    Final Action Disposition
    9/92 IBRD Shuikou Hydroelectric 100.0 Abstained HR Approved
    9/92 ADB Laiwu Iron & Steel Mill modern. 25.0 "No" HR/Econ Approved
    9/92 ADB Guangzhou Pearl River Power 50.0 Abstained HR/Econ Approved
    Env/Procurement
    9/92 ADB Industrial Energy 107.0 Abstained HR Approved
    9/92 ADB Energy Mgmt 0.6 Abstained HR Approved
    9/92 IDA Financial Sector (TA) 60.0 Abstained HR Approved
    10/92 IFC Shenzhen Tai-Yang PCCP Co. (Eq) 1.0 Abstained HR Approved
    10/92 IFC Shenzhen Tai-Yang PCCP Co. 4.0 Abstained HR Approved
    11/92 IBRD Henan Hwy 120.0 Abstained HR Approved
    11/92 IBRD Guangdong Prov. Hwy 240.0 Abstained HR Approved
    11/92 ADB Shanghai Yangpu Bridge 85.0 Abstained HR Approved
    12/92 ADB Indust. Tech. Finance 120.0 Abstained HR Approved
    12/92 IDA misc. 50.0 Abstained HR Approved
    12/92 IBRD Shanghai Port Dev. 150.0 Abstained HR Approved
    12/92 ADB Haihe Basin study 1.2 Abstained HR Approved
    1/93 ADB Shanghai Yangpu Bridge 54.0 "No" HR Approved
    1/93 IFC Joint Venture Comm. Bank (Eq) 3.8 Abstained HR Approved
    2/93 IBRD Taihu Bason Flood Control 200.0 Abstained Econ Approved
    3/93 IBRD Tainjin Ind. Dev. 150.0 Abstained HR Approved
    3/93 IBRD Sixth Railway 420.0 Abstained HR Approved
    3/93 ADB Hefei-Jiujiang Railway (TA) 0.6 Abstained HR Approved
    3/93 ADB Hefei-Jiujiang Railway 112.0 Abstained HR Approved
    4/93 IFC Yantai Mitsubishi Cement (Eq) 2.0 Abstained HR Approved
    4/93 IFC Yantai Mitsubishi Cement 28.7 Abstained HR Approved
    5/93 IBRD Tianhuangping Hydro. 300.0 Abstained HR Approved
    6/93 IDA Grain Dist./ Marketing 165.0 "No" HR Approved
    6/93 IBRD Grain Dist./ Marketing 325.0 "No" HR Approved
    6/93 IDA Environ. (TA) 50.0 Abstained HR Approved
    6/93 IFC Double Happiness Tire 1.1 Abstained HR approved
    6/93 IFC Hangzhou Zhongce Rubber Co. 2.2 Abstained HR Approved
    8/93 ADB Guangzhou Pumped Storage 200.0 Abstained HR Approved

    CRS-41

    Date of Bank Project $ Millions U.S. VoteReason Final
    Final Action Disposition
    8/93 ADB Telecomm. 100.0 Abstained HR approved
    8/93 ADB Telecomm. (TA) 0.6 Abstained HR approved
    8/93 ADB Fertilizer Ind. Restruct. 250.0 Abstained HR Approved
    10/93 IBRD Second shanghai Metro Transport. 150.0 Abstained HR approved
    11/93 IFC China Walden Inv. (Eq) 7.5 Abstained HR Approved
    11/93 ADB Hunan & Jilin Xways 200.0 Abstained HR Approved
    11/93 ADB Road Sector Support (TA) 1.2 Abstained HR Approved
    11/93 ADB EIA 0.9 Abstained HR Approved
    12/93 ADB Agribusiness Dev. 50.0 Abstained HR Approved
    12/93 IBRD Fujian Hwy 140.0 Abstained HR Approved
    12/93 IBRD Telecomm. 250.0 Abstained HR Approved
    12/93 IFC Dalian Float Glass (Loan/Eq) 32.9 Abstained HR Approved
    3/94 IBRD Sichuan Gas Dev. & Conserv. 255.0 Abstained HR Approved
    3/94 IBRD Yangzhou Thermal Power 350.0 Abstained HR Approved
    3/94 IBRD Yangzhou Thermal Power 120.0 Abstained HR Approved
    4/94 ADB Anging Acrylic Fiber 15.0 "No" HR Approved
    4/94 ADB Guangzhou Pumped Storage 63.0 "No" HR Approved
    4/94 IBRD Xiaolangdi Multipurpose 460.0 Abstained HR Approved
    6/94 IBRD Hebei/Henan Natl. Hwy 380.0 Abstained HR Approved
    6/94 IFC China Dynamic Growth (Eq) 20.0 Abstained HR Approved
    6/94 ADB Forest Ecosys Plan & Agro-Ind. 0.6 Abstained HR Approved
    Pollution Control
    6/94 ADB Yunnan Yun-Jing Forestry & 0.4 Abstained HR Approved
    Pulpmill
    6/94 ADB Yunnan-Simao Forestry 77.0 Abstained HR Approved
    6/94 IFC Plantation Timber (Loan/Eq) 12.0 Abstained HR Approved
    7/94 ADB Jing-Jui Rail 200.0 Abstained HR Approved
    7/94 ADB Min. of Hwy (TA) 0.6 Abstained HR Approved
    8/94 IBRD Xinjiang Hwy 150.0 Abstained HR Approved
    9/94 IBRD Shenyang Ind. Reform 175.0 "No" HR/Econ Approved
    9/94 ADB Hunan Lingjintan Hydropower 116.0 Abstained HR Approved
    9/94 ADB Shanghai Waigaogiao 0.6 Abstained HR Approved
    9/94 ADB Hunan Electric (TA) 0.4 Abstained HR Approved

    CRS-42

    Date of Bank Project $ Millions U.S. VoteReason Final
    Final Action Disposition
    9/94 ADB Heilongjjiang Hwy 142.0 Abstained HR Approved
    9/94 ADB Provincial Hwy Plan. 0.6 Abstained HR Approved
    9/94 ADB Road Safety 0.6 Abstained HR Approved
    9/94 ADB Yunnan Express 150.0 Abstained HR Approved
    10/94 IFC Newbridge Invest. (Eq) 10.0 Abstained HR Approved
    10/94 IDA Economic Law Reform 10.0 Abstained HR Approved
    10/94 ADB Qitaihe Thermal Energy 165.0 Abstained HR Approved
    12/94 IFC Nantong Wanfu Special Aquatic 7.0 Abstained HR Approved
    12/94 IFC Nantong Wanfu Special Aquatic 3.0 Abstained HR Approved
    2/95 IFC Suzhou PVC (Loan/Eq) 16.6 Abstained HR Approved
    2/95 IBRD Sichuan Power 270.0 Abstained HR/Econ Approved
    2/95 IBRD Tech. Devl. Project 200.0 "No" HR/Econ Approved
    2/95 IBRD Zhejiang Power 400.0 Abstained HR/Env Approved
    2/95 IBRD Zhejiang Power (guar.) 150.0 Abstained HR/Env Approved
    4/95 IBRD Fiscal Tech. Assist. Project 25.0 Abstained HR/Econ Approved
    4/95 IBRD Yangtze Basin Water Resources 100.0 Abstained HR/Econ Approved
    4/95 IDA Fiscal Tech. Assist. Project 25.0 Abstained HR/Econ Approved
    4/95 IDA Yangtze Basin Water Resources 110.0 Abstained HR/Econ Approved
    4/95 IFC Plantation Timber 20.0 Abstained HR Approved
    5/95 IFC Dupont Suzhou (Loan/Eq) 35.1 Abstained HR Approved
    6/95 IBRD Seventh Railway 400.0 Abstained HR Approved
    6/95 IBRD Inland Waterways 210.0 Abstained HR Approved
    6/95 IFC Piaggio Lyman Foshan (Loan/Eq/ 32.5 Abstained HR Approved
    Standby)
    8/95 IBRD Shanghai-Zhejiang Hwy 260.0 Abstained HR Approved
    8/95 IBRD Ertan Hydroelectric 400.0 Abstained HR Approved
    8/95 IBRD Ertan Hydroelectric (guaranty) 150.0 Abstained HR Approved
    9/95 IFC Nanjing Kumbo Tire (Loan/Eq) 29.8 Abstained HR Approved
    9/95 ADB Hainan Ag. & Natural Resource 53.0 "No" HR/Econ Approved
    Dev.

    CRS-43

    Date of Bank Project $ Millions U.S. VoteReason Final
    Final Action Disposition
    9/95 ADB Jiangengling Park Mgmt & 0.6 "No" HR/Econ Approved
    Biodivers.
    9/95 ADB Corporate Mgmt, Marketing, 0.5 "No" HR/Econ Approved
    Trading
    9/95 IFC Weihai Weidongri Foodstuff 12.0 Abstained HR Approved
    (Loan/Eq)
    9/95 ADB Second Telecomm 100.0 Abstained HR Approved
    9/95 ADB Provinc. Telecomm 0.6 Abstained HR Approved
    9/95 ADB Hebei & Liaoning Expressways 320.0 Abstained HR Approved
    9/95 ADB Hebei Hwy Mgmt 0.7 Abstained HR Approved
    9/95 IFC Beijing Hormel Foods (Loan/Eq) 5.5 Abstained HR Approved
    11/95 ADB Henan Thermal Power Project 200.0 Abstained HR Approved
    11/95 JSF Integrated Resource Planning 0.4 Abstained HR Approved
    12/95 ADB Second Yantai Port Project 63.0 Abstained HR Approved
    12/95 JSF Port Authorities Management 0.5 Abstained HR Approved
    12/95 ADB Fujian Mianhuatan Hydropower 170.0 Abstained HR Approved
    12/95 ADB Fujian Elect. Power 0.3 Abstained HR Approved
    12/95 IBRD Hubei Urban Environment 125.0 "No" HR Approved
    12/95 IDA Hubei Urban Environment 25.0 "No" HR Approved
    12/95 ADB Ping Hu Oil & Gas Development 130.0 "No" HR/Econ Approved
    12/95 JSF Safety & Env: Offshore Oil & Gas 0.6 "No" HR/Econ Approved
    12/95 JSF Mgmt Systems for SMPC 0.3 "No" HR/Econ Approved
    12/95 JSF Power Sector 0.8 Abstained HR Approved
    12/95 JSF Provincial Power 0.7 Abstained HR Approved
    12/95 JSF Zhejiang-Shanxi Water Conserv. 1.0 Abstained HR Approved
    1/96 ADB Fangcheng Port Project 52.0 Abstained HR Approved
    2/96 IBRD Henan (Qinbei) Thermal Power 440.0 Abstained HR Approved
    3/96 IFC Jingyang Cement Co., Ltd. 40.0 Abstained HR Approved
    3/96 IBRD Second Shaanxi Provinc. Hwy. 210.0 Abstained HR Approved
    4/96 IBRD Animal Feed Project 150.0 Abstained HR Approved
    4/96 IFC Tianjin Kumho Tire (Loan/Eq) 26.5 "No" HR/Econ Approved
    5/96 IFC Jingyang Cement Co. Ltd. 44.0 Abstained HR Approved
    (Loan/Guar.)

    CRS-44

    Date of Bank Project $ Millions U.S. VoteReason Final
    Final Action Disposition
    5/96 IFC Friesland Tianjin Dairy Foods 9.1 Abstained HR Approved
    5/96 IBRD Second Henan Provinc. Hwy. 210.0 Abstained HR Approved
    5/96 ADB Indust. Energy Effic. & Env. 178.0 "No" HR/Econ Approved
    Improvement II
    6/96 ADB Daxian-Wanxian Railway 100.0 Abstained HR Approved
    6/96 IBRD Chongqing Indust. Pollution 170.0 Abstained HR/Econ Approved
    6/96 IBRD Seed Sector Commercialization 20.0 Abstained HR/Econ Approved
    6/96 IBRD Seed Sector Commercialization 80.0 Abstained HR/Econ Approved
    6/96 IFC Fairyoung Ports (Eq) 4.0 Abstained HR Approved
    6/96 IFC Fairoung Ports/Nanjung Huining 4.0 Abstained HR Approved
    Wharfs
    6/96 IFC Fairyoung Ports/Xiamen Xian Yu 10.0 Abstained HR Approved
    Quay
    6/96 IFC Shandong Sand Food Dev. Co. 17.0 Abstained HR Approved
    6/96 IFC Caltex Ocean Gas & Energy 31.33 Abstained HR Approved
    7/96 IDA Voc. Ed. Reform Project 20.0 Abstained HR Approved
    7/96 IBRD Voc. Ed. Reform Project 10.0 Abstained HR Approved
    7/96 IBRD Shuikou Hydroelectric II .0 "No" HR Approved
    8/96 IFC Ningbo Taihang Ag. Products .89 Abstained HR Approved
    (Quasi-eq)
    9/96 IBRD Telecommunications Amd .0 Abstained HR Approved
    9/96 ADB Anhui Fuyand Eng. TA 2.0 Abstained HR Approved
    9/96 ADB Hwy Sector Technical Assist. 1.10 Abstained HR Approved
    10/96 IBRD Second Xinjiang Hwy. Project 300.0 Abstained HR Approved
    11/96 ADB Everbright Bank of China Project 60.0 Abstained HR Approved
    11/96 ADB Capacity Bldg, Everbright Bank 0.60 Abstained HR Approved
    11/96 ADB Shenyang-Jinzhou Expressway 200.0 Abstained HR Approved
    11/96 ADB Jiangxi Expressway Project 150.0 Abstained HR Approved
    11/96 ADB Anhui Env. Improvement: 112.0 "No" HR/Econ Approved
    Municipal Wastewater Treatment
    11/96 ADB Anhui Env. Improvement: Ind. 28.0 "No" HR/Econ Approved
    Pollution Abatement
    11/96 ADB Integrated Env. Mgmt., Chao Lake 0.8 "No" HR/Econ Approved

    CRS-45

    Date of Bank Project $ Millions U.S. VoteReason Final
    Final Action Disposition
    Basin
    12/96 ADB No. China Marine Culture & 70.0 Abstained HR Approved
    Coastal Resource Mgmt.
    12/96 ADB Coastal Resource Conservation & 0.81 Abstained HR Approved
    Env. Mgmt.
    12/96 IBRD Second Natl. Hwy. Project 400.0 Abstained HR Approved
    12/96 GEF Efficient Indust. Boilers 32.8 Abstained HR Approved
    (GEF grant)
    12/96 ADB Capacity Bldg., Natural Resources 0.80 Abstained HR Approved
    3/97 IFC Orient Finance Company 10.0 Abstained HR Approved
    3/97 IFC Der Kwei China Expansion 30.0 Abstained HR Approved
    (Loan/Eq)

    Authority: Votes based on human rights criteria: Sec. 701(f) of the
    International Financial Institutions Act of 1977 [P.L. 95-118; 22
    U.S.C. 262d(f)]. Votes based on environmental criteria: Title XIII of
    the International Financial Institutions Act of 1977, particularly
    Sec. 1307 [P.L. 95-118; 22 U.S.C. 262m. Sec. 1307 at 22 U.S.C. 262m-7].
    Votes based on economic and procurement criteria: general authority to
    participate in each respective bank: World Bank, P.L. 79-171, [22 U.S.C. 286];
    International Finance Corporation, P.L. 84-350 [22 U.S.C. 282]; International
    Development Association, P.L. 86-565 [22 U.S.C. 284]; Asian Development Bank,
    P.L. 89-369 [22 U.S.C. 285].

    Sources: Compiled from reports the U.S. Department of the Treasury files
    quarterly, as required by section 701 of the International Financial
    Institutions Act, with the Senate Committee on Foreign Relations and the
    House Committee on Banking and Financial Services. Unpublished since FY1991.
    The table does not include small technical assistance transactions (less than
    $600,000) of the Asian Development Bank, which are not voted on by the board
    but instead approved by the ADB President.

    CRS-46

    SOURCES

    1 U.S. Army Area Handbook. China. 1972.

    2 U.S. Commercial Relations With Communist Countries, by Vladimir Pregelj.
    1984. CRS Report 84-67 E. p. 6.

    3 Ibid., p. 11; U.S. Department of Treasury. Foreign Assets Control Office,
    February 1987. Comments on earlier draft of CRS paper.

    4 Spector, Leonard S., The Undeclared Bomb. Ballinger Publishing Co.,
    Cambridge, MA. 1988. p. 72-75. "The Nuclear Epidemic." U.S. News & World
    Report, March 16, 1992. p. 40-51. "IAEA Allows Algeria, Syria To Import
    Reactors." Foreign Broadcast Information Service, March 2, 1992. p. 1. "China,
    Iran Sign Contract for Construction of Two 300MW Nuclear Power Plants." Foreign
    Broadcast Information Service, February 23, 1993. p. 2. Lewis, Paul. "Iraq Trying
    to Make Plutonium Too, U.N. Aide Says." New York Times, February 13, 1992. p.
    A16.

    5 China Missile and Nuclear Proliferation: Issues for Congress, by Robert
    Shuey and Shirley A. Kan. February 12, 1996. CRS Issue Brief IB92056.

    6 Gertz, Bill, "Missile Sanctions on China Vowed," Washington Times, June 13,
    1996, p. 1, 12.

    7 China-U.S. Relations, by Kerry Dumbaugh. January 18, 1996. CRS Issue
    Brief IB94002; China's Rising Military Power and Influence -- Issues and Options
    for the U.S., by Robert G. Sutter. January 16, 1996. CRS Report 96-66F; China in
    World Affairs -- U.S. Policy Choices, by Robert G. Sutter. January 31, 1995. CRS
    Report 95-265S; and Ibid.

    8 Eckstein, Alexander, ed. China Trade Prospects and U.S. Policy. Praeger,
    New York, 1971. p. 46.

    9 Ibid., p. 6-59; 15 F.R. 4189.

    10 56 F.R. 55630-55631.

    11 U.S. President, 1969-(Nixon). "Statement Announcing Changes in Trade
    and Travel Restrictions With the People's Republic of China, April 14, 1971." Public
    Papers of the Presidents, 1972. p. 530.

    12 U.S. President, 1969-(Nixon). "Trade With the People's Republic of
    China." Statement by the Press Secretary on the Lifting of Trade Controls Between
    the United States and the People's Republic, June 10, 1971. Weekly Compilation of
    Presidential Documents, v. 7, June 14, 1971. p. 890; U.S. Commercial Relations

    CRS-47

    With Communist Countries, by Vladimir Pregelj. 1984. CRS Report 84-67 E. p. 4.

    13 U.S. Commercial Relations With Communist Countries, by Vladimir Pregelj.
    1984. CRS Report 84-67 E. p. 4.

    14 The Generalized System of Preferences will expire on May 31, 1997, unless
    it is renewed or extended by Congress enacting legislation.

    15 U.S. Department of Treasury. Foreign Assets Control Office, February 1987.
    Comments on earlier draft of this paper.

    16 Most-Favored-Nation Status of the People's Republic of China, by Vladimir

    N. Pregelj. Updated February 15, 1996. CRS Issue Brief IB92094.

    17 U.S. President, 1981-1989 (Reagan). "Trade With Romania, Hungary, and
    the People's Republic of China, June 3, 1985." Weekly Compilation of Presidential
    Documents, v. 18, June 3, 1985. p. 735.

    18 Increased U.S. Military Sales to China: Arguments and Alternatives, by
    Robert G. Sutter. 1981. CRS Report 81-121 F. p. 7.

    19 U.S. Commercial Relations With Communist Countries, by Vladimir Pregelj.
    1984. CRS Report 84-67 E. p. 12; 45 F.R. 27922.

    20 "U.S. Reaches Accord With China on Arms Sales." Washington Post, June
    17, 1981. p. A1, A23.

    21 Department of Commerce. Bureau of Export Administration. 15 CFR 785.4.
    "Country Groups T and V." January 1, 1995, edition. p. 421.

    22 Spector, Leonard S. Nuclear Ambitions. Westview Press, 1990. p. 62.

    23 Farnsworth, Clyde. "U.S. Curbing High-Technology Exports to China in
    Dispute Over Supply of Silkworm Missiles to Iran." New York Times, October 22,
    1987: 1.

    24 "Reagan Lifts High-Tech Ban on China Sales." Journal of Commerce, March
    10, 1988. p. 2A.

    25 U.S. President, 1989-(Bush). "The President's News Conference, June 5,
    1989." Weekly Compilation of Presidential Documents, v. 23, June 9, 1989. p. 839.

    26 U.S. President, 1989- (Bush). "Statement by Press Secretary Fitzwater on
    United States Action Against the Chinese Government, June 20, 1989." Weekly
    Compilation of Presidential Documents, v. 25, June 26, 1989. p. 941.

    27 Ibid.

    CRS-48

    28 China Sanctions: Some Possible Effects, by Kerry Dumbaugh et al. 1989,
    updated March 26, 1990. CRS Report 90-186 E. p. 3.

    29 Ibid.

    30 U.S. President, 1989- (Bush). "Letter to the Speaker of the House and the
    President of the Senate on the Termination of Restrictions on Trade With China,
    December 19, 1989." Weekly Compilation of Presidential Documents, v. 235,
    December 25, 1989. p. 1973.

    31 U.S. President, 1989- (Bush). "Letter to the Speaker of the House and the
    President of the Senate on the Licensing of Communications Satellites for China,
    December 19, 1989." Weekly Compilation of Presidential Documents, v. 25,
    December 25, 1989. p. 1972.

    32 U.S. Congress. House. "Message From the President Transmitting a Report
    on Economic Sanctions Against China," 101st Cong., 2d Sess. House Doc. 101-192.
    1990. p. 18.

    33 "World Bank Clears Loan for China." Washington Post, May 30, 1990. p.
    A17.

    34 Compiled from reports the Department of the Treasury filed quarterly, as
    required by Section 701 of the International Financial Institutions Act, with the Senate
    Committee on Foreign Relations and the House Committee on Banking and Financial
    Services.

    35 "Bush Warns China on Its Human Rights Record: Visiting Foreign Minister
    Told Normalization of Relations Hinges on Improvements." Washington Post,
    December 1, 1990. p. A14.

    36 China Sanctions: Some Possible Effects, by Kerry Dumbaugh et al. 1989,
    updated March 26, 1990. CRS Report 90-186 E. p. 3.

    37 U.S. President, 1989- (Bush). "Statement by Press Secretary Fitzwater on
    Restrictions on U.S. Satellite Component Exports to China, April 30, 1991." Weekly
    Compilation of Presidential Documents, v. 27, May 3, 1991. p. 531.

    38 "Bush Renewing Trade Privileges for China, but Adds Missile Curbs." New
    York Times, May 28, 1991. p. A1, A8. "A Decade of Export Control Policy for
    China." The China Business Review, May-June 1992. p. 34.

    39 "A Decade of Export Control Policy for China." The China Business Review,
    May-June 1992. p. 34. "Confounded by the Chinese Puzzle." Time, April 25, 1994.

    p. 39.
    40 U.S. Department of State. "China's Adherence to Missile Control Guidelines:
    Statement, February 21, 1992." Dispatch, vol. 3, no. 10, March 9, 1992. p. 189.

    CRS-49

    41 "U.S. to Lift China Sanctions on Computers, Satellite Parts." Washington
    Post, December 20, 1991. p. 38. "U.S. Postpones Decision on Supercomputer Sale:
    Officials Split on Exporting Cray to China." Washington Post, December 5, 1992.
    p. A3. "A Decade of Export Control Policy for China." The China Business Review,
    May-June 1992. p. 34.

    42 "Bush Lifts Ban on Arms Sales to the Chinese." Washington Post, December
    23, 1992. p. A22.

    43 U.S. President, 1993- (Clinton). "President's News Conference, May 26,
    1994." Weekly Compilation of Presidential Documents, v. 30, May 26, 1994. p.
    1167. See also sense of the Senate in Sec. 513 of the Foreign Relations Authorization
    Act, Fiscal Years 1994 and 1995 [P.L. 103-236; 108 Stat. 466].

    44 Lelyveld, Michael. "Allies' Move to OK High-Tech Exports May Hurt US."
    Journal of Commerce, December 13, 1993. p. 3.

    45 Lelyveld, Michael S. "US to Allow Telecom Sales to Chinese, Former
    Soviets." Journal of Commerce, January 11, 1994.

    46 Department of Commerce, Bureau of Export Administration. "Establishment
    of New General License for Shipments to Country Groups QWY and the People's
    Republic of China." 15 CFR 771 and 774. April 4, 1994. 59 F.R. 15621. Friedman,
    Thomas L. "U.S. Ending Curbs on High-Tech Gear to Cold War Foes." New York
    Times, March 31, 1994. p. 1.

    47 61 F.R. 12722.

    48 27 CFR 47.52, Bureau of Alcohol, Tobacco and Firearms, Department of
    Treasury. Similar language for the Department of State may be found at 22 CFR
    126.1.

    49 "Notice of the Termination of the Suspension of Licenses for the Export of
    Cryptographic Items to the People's Republic of China--Message From the President,"
    Presidential Message (PM) 57. Congressional Record, June 22, 1995, p. S8943.

    50 U.S. President, 1993-(Clinton). "Message(s) to the Congress on Trade
    With China, February 6, 1996." Weekly Compilation of Presidential Documents, v.
    32, February 12, 1996. p. 206.

    51 Smith, Jeffrey R. and Ann Devroy. "U.S. Asks China to End Shipments."
    Washington Post, February 28, 1996. p. A23.

    52 Letter from Under Secretary of State for Economic, Business, and
    Agricultural Affairs, to President and Chairman of the Export-Import Bank of the
    United States, April 24, 1996.

    53 Smith, Jeffrey R. and Ann Devroy. "U.S. Asks China to End Shipments."
    Washington Post, February 28, 1996. p. A23.

    CRS-50

    54 "Termination of Suspensions Under Foreign Relations Authorization Act With
    Respect to Issuance of Licenses to People's Republic of China--Message From the
    President of the United States (H. Doc. No. 104-236)," Congressional Record, June
    24, 1996, p. H6709.

    __________________________________________________________________________________