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China: Economic Sanctions (CRS Report for Congress)

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Release Date Aug. 22, 2016
Report Number R44605
Report Type Report
Authors Dianne E. Rennack
Source Agency Congressional Research Service
Summary:

United States-China relations, since 1969, when the process of normalization began under President Richard M. Nixon, have advanced to a point that relatively few restrictions affecting trade remain. This report summarizes the United States' economic sanctions on China. The United States, in its relationship with China, limits U.S. foreign assistance and State Department programs; limits U.S. support for China's requests for funding in the international banks; prohibits the exportation of defense articles and defense services to China; prohibits the importation of munitions and ammunition from China; limits exports to China of goods and services controlled for national security or foreign policy reasons, including prohibiting exports to specific Chinese entities of goods that have a military end-use; limits import/export and procurement contracts for specific Chinese entities found to be engaged in weapons proliferation activities; and restricts access to U.S.-based assets and the ability to enter into transactions with U.S. persons, imposed on specific Chinese persons for reasons ranging from weapons proliferation, illicit narcotics trafficking, international terrorism, and engagement with others against which the United States imposes sanctions (i.e., entities in Iran, Russia, North Korea, Belarus). Policymakers recognize the influence and impact of China's growing economy and role in international markets, military modernization, increasingly outward-looking investment in other regions, activities in the South China Sea, and often contrarian position in the United Nations Security Council. These factors challenge legislators and the executive branch alike in their efforts to shape and implement the U.S.-China bilateral relationship.