In 1980, the United States opened trade relations with the People’s Republic of China by entering into a bilateral trade agreement, which was approved by joint resolution enacted pursuant to section 2435(c) of title 19.

Since 1980, the President has consistently extended nondiscriminatory treatment to products of the People’s Republic of China, pursuant to his authority under section 2434 of title 19.

Since 1980, the United States has entered into several additional trade-related agreements with the People’s Republic of China, including a memorandum of understanding on market access in 1992, two agreements on intellectual property rights protection in 1992 and 1995, and an agreement on agricultural cooperation in 1999.

Trade in goods between the People’s Republic of China and the United States totaled almost $95,000,000,000 in 1999, compared with approximately $18,000,000,000 in 1989, representing growth of approximately 428 percent over 10 years.

The United States merchandise trade deficit with the People’s Republic of China has grown from approximately $6,000,000,000 in 1989 to over $68,000,000,000 in 1999, a growth of over 1,000 percent.

The People’s Republic of China currently restricts imports through relatively high tariffs and nontariff barriers, including import licensing, technology transfer, and local content requirements.

United States businesses attempting to sell goods to markets in the People’s Republic of China have complained of uneven application of tariffs, customs procedures, and other laws, rules, and administrative measures affecting their ability to sell their products in the Chinese market.

On November 15, 1999, the United States and the People’s Republic of China concluded a bilateral agreement concerning terms of the People’s Republic of China’s eventual accession to the World Trade Organization.

The commitments that the People’s Republic of China made in its November 15, 1999, agreement with the United States promise to eliminate or greatly reduce the principal barriers to trade with and investment in the People’s Republic of China, if those commitments are effectively complied with and enforced.

The record of the People’s Republic of China in implementing trade-related commitments has been mixed. While the People’s Republic of China has generally met the requirements of the 1992 market access memorandum of understanding and the 1992 and 1995 agreements on intellectual property rights protection, other measures remain in place or have been put into place which tend to diminish the benefit to United States businesses, farmers, and workers from the People’s Republic of China’s implementation of those earlier commitments. Notably, administration of tariff-rate quotas and other trade-related laws remains opaque, new local content requirements have proliferated, restrictions on importation of animal and plant products are not always supported by sound science, and licensing requirements for importation and distribution of goods remain common. Finally, the Government of the People’s Republic of China has failed to cooperate with the United States Customs Service in implementing a 1992 memorandum of un

derstanding prohibiting trade in products made by prison labor.

The human rights record of the People’s Republic of China is a matter of very serious concern to the Congress. The Congress notes that the Department of State’s 1999 Country Reports on Human Rights Practices for the People’s Republic of China finds that “[t]he Government’s poor human rights record deteriorated markedly throughout the year, as the Government intensified efforts to suppress dissent, particularly organized dissent.”.

The Congress deplores violations by the Government of the People’s Republic of China of human rights, religious freedoms, and worker rights that are referred to in the Department of State’s 1999 Country Reports on Human Rights Practices for the People’s Republic of China, including the banning of the Falun Gong spiritual movement, denial in many cases, particularly politically sensitive ones, of effective representation by counsel and public trials, extrajudicial killings and torture, forced abortion and sterilization, restriction of access to Tibet and Xinjiang, perpetuation of “reeducation through labor”, denial of the right of workers to organize labor unions or bargain collectively with their employers, and failure to implement a 1992 memorandum of understanding prohibiting trade in products made by prison labor.