Market Access
At the conclusion of a year long investigation on October 10,
1992, the U.S. and China signed a Memorandum of Understanding
(MOU) which provides for the phased elimination of non-tariff
barriers on key U.S. exports and tariff reductions in certain
sectors. The Chinese recently took steps under the agreement to
increase transparency and remove import licensing requirements,
quotas, and controls. USTR continues to press for full
implementation.
IPR
On May 26, 1991, USTR initiated a Section 301 investigation of
China'S IPR regime. At the conclusion of six rounds of
consultations on January 17, 1992, the U.S. and China signed a
Memorandum of Understanding that commits China to provide
improved protection for U.S. intellectual property in the
copyright, patent, and trade secret areas. Although China has
greatly improved the legal regime for protecting intellectual
property (IPR), enforcement is a - growing problem. On December
1, 1993, China was placed on the Priority Watch List for lack of
IPR enforcement. On June 30, USTR Kantor named China a "priority
foreign country" under the Special 301 Trade legislation and
initiated a six-month investigation into China's protection of
IPR. Negotiations are scheduled for August in Beijing.
Export Controls
Last August, the U.S. imposed sanctions on China for an M-11
missile-related transfer to Pakistan. On January 7, 1994, it was
decided that although communications satellites licensed by the
State Department are covered by the sanctions law, export
licenses for communications satellites licensed by the
Deparunent of Commerce may be approved. Two such export licenses
for communications satellites were recently approved by the
Department of Commerce.
Textiles
China has exported in excess of its quotas in circumvention of
our bilateral agreement U.S. Customs investigations showed that
many shipments of Chinese textiles were transshipped and/or falsely
labeled as originating in third countries. On January 17, 1994,
the U.S. and China signed a Memorandum of Underslanding
establishing a new three year textiles agreement which imposes
a cap on China's previously unlimited silk exports, reduces quota
growth for the final two years of the agreement, and includes
transshipment language prodding for penalties and factory
visits.