China: U.S. Economic Sanctions (CRS Report for Congress)
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| Release Date |
Oct. 1, 1997 |
| Report Number |
96-272 |
| Source Agency |
Congressional Research Service |
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.
