China: U.S. Economic Sanctions

China: U.S. Economic Sanctions

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.)

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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. In May 1973, a U.S. liaison office was established in Beijing.
1
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.

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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. After y
4
ears 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

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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.

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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.

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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. 99-
472].
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. On September 18, 1971, travel restrictions on U.S.-residen
11
t
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.

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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

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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
P R E F E R E N C ES 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].

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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 88-
18, 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

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Determination 95-23, June 2, 1995 (60 F.R. 31047); Presidential Determination 96-
29, 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 EXPORT-
IMPORT 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. 79-
173; 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.

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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]

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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
N U C L E A R 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 EXPORT-
IMPORT 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:
P R O H I B I T E D E X P O R 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 EXPORT-
IMPORT 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. On May 29, 1990, the World
32
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:
S U S P E N D E D C E R T A I 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
T E C H N O L O G Y A N D
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. 90-
629; 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:
P R O H I B I T I O N O N
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 EXPORT-
IMPORT 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. 90-
629; 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
A N D A M M U N I T I O 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 104-
208; 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 EXPORT-
IMPORT 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 EXPORT-
IMPORT 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
R E Q U I R E M E N T S F O R
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 -- SANCTION
E X P O R T - I M P O R T B A N 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-by-
case 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
A D B /
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
A D B /
Anging Acrylic Fiber (loan & TA)
105.5
Abstained
HR
Approved
ADF
11/91
IDA
Guandong Ag. Dev.
162.0
Abstained
HR
Approved
12/91
A D B /
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/Pro-
curement
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.
Ibid., p. 6-59; 15 F.R. 4189.
9
56 F.R. 55630-55631.
10

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.
The Generalized System of
14
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.
Ibid.
27

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.
Ibid.
29

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.
61 F.R. 12722.
47
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.