October 1, 1997

96-272 F 
CRS Report for Congress 

Received through the CRS Web 

China: U.S. Economic Sanctions 

Updated October 1, 1997 


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

Congressional Research Service
The Library of Congress 


ABSTRACT 


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


China: U.S. Economic Sanctions 


Summary 


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


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


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


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



Contents 


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

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

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

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


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


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


China: U.S. Economic Sanctions 


CURRENT SANCTIONS 


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

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

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

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

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

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

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

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

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

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

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

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


CRS-2 


Background 


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


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




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


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


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


CRS-3 


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



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


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



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


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



CRS-4 


Sanctions 


EARLY 1949 -- SANCTION: 
RESTRICTED TRADE 


Status: Superseded 


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



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


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


DECEMBER 1950 -- SANCTION: 
TRADE EMBARGO; TRAVEL 
PROHIBITED 


Status: Lifted 


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



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

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


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


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


CRS-5 


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


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


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


Status: Lifted 


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


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


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


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


Status: Lifted 


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



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


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


AUGUST 1, 1962 -- SANCTION: 
PROHIBITED AID 


Status: Waived 


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



CRS-6 


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


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


Status: Superseded 


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


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


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


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


See April 2, 1980, for waiver of sanction. 


See October 15, 1986, for continuation of sanction. 


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


See February 28, 1996, for modification of sanction. 


CRS-7 


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


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


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


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


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


Status: Lifted 


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


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


See June 12, 1984, for lifting of sanction. 


MAY 7, 1971 -- MODIFIED: TRAVEL PROHIBITION LIFTED 


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


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


See December 1950 for original sanction. 


CRS-8 


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


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


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


See December 1950 for original sanction. 


JUNE 11, 1971 -- LIFTED: 
TRADE EMBARGO 


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


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


See December 1950 for original sanction. 


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


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


1994, for further modifications of sanction. 


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


Status: Suspended 

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


CRS-9 


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


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


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


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


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


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


Status: Active 


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


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


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


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


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


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


CRS-10 


JANUARY 31, 1980 -- LIFTED: 
FOREIGN ASSETS CONTROL 


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



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


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


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


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


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


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


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


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


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


CRS-11 


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


See September 1, 1951, for original sanction. 


See January 3, 1975, for modification of sanction. 


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


MARCH 1980 -- MODIFIED: 
ARMS TRADE BAN 


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



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


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


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


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


See January 6, 1964, for original sanction. 


See October 15, 1986, for continuation of sanction. 


APRIL 25, 1980 -- MODIFIED: 
RESTRICTIONS ON EXPORTS 


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


See January 1, 1965, for original sanction. 


CRS-12 


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


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


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


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


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


See August 26, 1955, for original sanction. 


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


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


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


See January 6, 1964, for original sanction. 


See October 15, 1986, for continuation of sanction. 


NOVEMBER 23, 1983 -- MODIFIED: 
RESTRICTIONS ON EXPORTS 


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


CRS-13 


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


See January 1, 1965, for original sanction. 


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


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


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


See October 22, 1968, for original sanction. 


DECEMBER 11, 1985 -- WAIVED: 
PROHIBITION ON AID 


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


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


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


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


See August 1, 1962, for original sanction. 


CRS-14 


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


Status: Active 


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


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


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


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


Status: Waived 


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


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


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


See December 19, 1989, for waiver of sanction. 


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


See February 28, 1996, for modification of sanction. 


CRS-15 


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


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


See March 9, 1988 for lifting of sanction. 


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


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


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


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


See October 15, 1986, for continuation of sanction. 


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


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


See March 22, 1987, for original sanction. 


CRS-16 


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


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


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


See January 6, 1964, for original sanction. 


See October 15, 1986, for continuation of sanction. 


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

 
Status: Modified 


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


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


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


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


Status: Lifted 


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


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


CRS-17 


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


Status: Active 


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


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


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


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


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


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


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


See June 5, 1989, for original sanction. 


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


Status: Expired 


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


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


CRS-18 


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


Status: Lifted 


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


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


See January 3, 1990, for lifting of sanction. 


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


Status: Waived 


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

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


See December 19, 1989, for waiver of sanction. 


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


Status: Waived 


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


CRS-19 


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


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


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


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


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


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


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


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


See November 21, 1989, for original sanction. 


JANUARY 1990 -- MODIFIED: SUSPENSION ON MDB LOANS 


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


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


CRS-20 


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


See June 20, 1989, for original sanction. 


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


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


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


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


See November 21, 1989, for original sanction. 


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


Status: Modified 


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


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


CRS-21 


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


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


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


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


Status: Modified 


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


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


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


See January 5, 1993, for modification of sanction. 


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


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


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


See June 20, 1989, for original sanction. 


CRS-22 


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


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


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


See February 16, 1990, for original sanction. 


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


Status: Lifted 


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


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


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


See March 23, 1992, for waiver of sanction. 


See December 4, 1992, for modification of sanction. 


See December 9, 1993, for lifting of sanction. 


CRS-23 


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


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


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


See January 1, 1965, for original sanction. 


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


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


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


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


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


Status: Active 


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


CRS-24 


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


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


Status: Lifted 


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


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


See December 18, 1993, for lifting of sanction. 


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


Status: Lifted 


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


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


See October 5, 1994, for lifting of sanction. 


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


Status: Active 


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



CRS-25 


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


OCTOBER 6, 1992 -- WAIVED: 
PROHIBITED INDIRECT AID 


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


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


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


See November 4, 1992, for waiver of sanction. 


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


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


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

CRS-26 


See October 6, 1992, for original sanction. 


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


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


See May 27, 1991, for original sanction. 


See December 9, 1993, for lifting of sanction. 


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


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


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


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


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


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


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


See November 5, 1990, for original sanction. 


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


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


CRS-27 


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


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


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


See October 15, 1986, for continuation of sanction. 


MAY 28, 1993 -- WAIVED: TRADE RESTRICTED 


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


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


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


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


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


Status: Active 


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


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


CRS-28 


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


Status: Waived 


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


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


See November 1, 1994, for waiver of sanction. 


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


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


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


See May 27, 1991, for original sanction. 


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


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


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


CRS-29 


See July 13, 1992, for original sanction. 


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


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


See February 15, 1972, for original sanction. 


MARCH 31, 1994 -- MODIFIED: 
TERMINATION OF COCOM 


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


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


Authority: 15 CFR Parts 771 and 774. 


See February 15, 1972, for original sanction. 


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


Status: Active 


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



CRS-30 


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


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


Status: Active 


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


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


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


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


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


See January 6, 1964, for original sanction. 


See October 15, 1986, for continuation of sanction. 


CRS-31 


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


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


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


See July 13, 1992, for original sanction. 


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


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


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


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


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


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


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


CRS-32 


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


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


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


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


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


See January 6, 1964, for original sanction. 


See October 15, 1986, for continuation of sanction. 


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


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


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


See February 16, 1990, for original sanction. 


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


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


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


CRS-33 


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

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


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


See May 27, 1991, for original sanction. 


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


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


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


See November 21, 1989, for original sanction. 


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


Status: Expired 


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


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


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


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


CRS-34 


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


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


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


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


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


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


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


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


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


CRS-35 


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


Status: Lifted 


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


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


See February 28, 1996, for earlier sanction. 


See May 10, 1996, for lifting of sanction. 


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


Status: Active 


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


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


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


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


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


See April 24, 1996, for original sanction. 


CRS-36 


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


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


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


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


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


See January 6, 1964, for original sanction. 


See October 15, 1986, for continuation of sanction. 


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


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


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


See January 6, 1964, for original sanction. 


See October 15, 1986, for continuation of sanction. 


CRS-37 


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


Status: Active 


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


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


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


CRS-38 


TABLE I 


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

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


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


Abbreviations and Acronyms:


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


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



CRS-39 


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


CRS-40 


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


CRS-41 


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


CRS-42 


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

CRS-43 


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


CRS-44 


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


CRS-45 


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


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

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


CRS-46


SOURCES 


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


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


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


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


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


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


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


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


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


10 56 F.R. 55630-55631. 


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


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


CRS-47 


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


27 Ibid. 


CRS-48 


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


29 Ibid. 


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


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


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


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


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


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


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


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


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


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


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


CRS-49


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


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


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


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


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


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


47 61 F.R. 12722. 


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


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


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


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


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


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


CRS-50


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

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