China As Most Favored Nation

3441 Words7 Pages
bulb-icon

Recommended: Economic Globalization and China

What is the debate on weather or not China should retain favored-nation trading status all about? Is it really a decision on what is best economically for the United States, and China.

Or is it: the issue of Chinese human rights violations and the fact that if the United States where to revoke the favored nation status of China it would have a profound negative impact on the U.S. economy alone.

(+)Most-favored-nation trade status started in the United States as a version of the European preferential trade system. The Carter Administration first granted most-favored-nation trading status to China in 1980, following the historic efforts of President Nixon during the 1970’s to restore diplomatic ties. Historically, a significant difference existed between the unconditional most-favored-nation clause in European trade law and the American version of conditional most-favored-nation. Under unconditional most-favored-nation status, one country's extension of tariff concessions guarantees the same concessions to all nations associated with it through commercial treaties. American conditional most-favored-nation status provided treaty signatories only the opportunity to negotiate most-favored-nation status when most-favored-nation status was extended to another trading partner. Thus meaning that the United States gives significant economic advantages to one nation in the form of most-favored-nation trading status.

Under the Trade Act of 1974, most-favored-nation status could only be granted to China through a Sino-American bilateral commercial agreement and satisfaction of the Jackson-Vanik Amendment requirements. The Jackson-Vanik amendment states that the President of the United States may grant a communist country such as China most-favored-nation trade status if it was in conjunction with a trade agreement and upon proper improvement that China would permit emigration. Also China would have to satisfy that they are moving toward improving current policies. The conclusion of the US-PRC commercial accord in July 1979, and the initial waiving of the Jackson-Vanik requirements, and with Congressional approval, most-favored-nation status was granted to China. This action sealed the successful efforts of the Carter Administration to create social and economic ties through Sino-American relations.

The renewal of China’s most-favored-nation trade status has been s...

... middle of paper ...

...t-favored-nation status. By giving stats and other figures that show just how this issue has the ability to effect the economies of both the United States and China.

Works Cited:
(-)Morrison, Wayne M. “91121: China-U.S. Trade Issues” Updated November 27, 1996 <a href="http://www.fas.org/man/crs/91-121.htm#summ">http://www.fas.org/man/crs/91-121.htm#summ
(+)Robertson III , Grayson R “The China-MFN Controversy: The Case For Maintaining China's MFN Status Part 1” <a href="http://www.china-net.org/CCF94/ccf9409-3.html">http://www.china-net.org/CCF94/ccf9409-3.html
(=)“MARKET ACCESS AND PROTOCOL COMMITMENTS” <a href="http://www.ustr.gov/releases/1999/04/ch-memo.html">http://www.ustr.gov/releases/1999/04/ch-memo.html
Delay, Tom “China-U.S. Trade Issues” <a href="http://www.majoritywhip.house.gov/China/980717CRSTradeRelations.asp">http://www.majoritywhip.house.gov/China/980717CRSTradeRelations.asp
Faison, Seth "U.S. And China Reach Late Agreement on Textiles," New York Times, February 3, 1997 <a href="http://www.mtholyoke.edu/acad/intrel/chintex.htm">http://www.mtholyoke.edu/acad/intrel/chintex.htm

Show More
Related

  • Interdependence In China

    1222 Words  | 3 Pages

    Moreover, economic interdependence promotes peaceful trade between countries since it is beneficial and avoids war at all cost. For example, “China’s economy is thoroughly integrated in this complex interdependence global economy,” thus it would be suicidal for China to start war (Wong, The Rise of Great Powers, Nov.18). China free trades with the Association of Southeast Asian Nations (ASEAN) and has developed a profitable relationship that led to trade surplus (Kaplan, pg.3). As a result, starting conflicts with the ASEAN will threaten the Chinese economy because it will drastically impact free trade and will cause a downfall in profits. The possibility of war between China and United States is remote because China would rather benefit from resources such as, security, technology, and market that United States provides (Wong, The Rise of Great Powers, Nov.18). Although economic power shifts to China, United States provides security because it has always been the dominant hegemony; therefore, it has a better and powerful economy (Green, pg.34). It is evident that China’s economy is rapidly increasing, but it still has no interest in being the head hegemony and therefore does not challenge United States. That being said, countries choose to avoid conflicts with United States or their trading partners since it will negatively impact their markets and investments.

    Read More

  • Analysis Of The Us-China Trade

    1570 Words  | 4 Pages

    The United States and China share the most imbalanced bilateral trade relationship in the world. The United States imports more goods from China than it exports to a tune of $202 billion dollars each year. All told, China alone accounts for nearly 26% of the United States' $725.8 billion trade deficit. “Increasingly, this imbalance has been the subject of a major political backlash within the U.S. congress, where some have charged that the US is destroying its industrial base to support a communist country's industrialization." http://worldnews.about.com/od/china/a/china_trade.htm

    Read More

  • Nixon Opening Of China Case Study

    2938 Words  | 6 Pages

    In 1972, President Richard Nixon was quoted as stating that his visit to the People’s Republic of China (PRC) “changed the world…to build a bridge across sixteen thousand miles and twenty-two years of hostilities.” By meeting with Chairman Mao Zedong in Beijing, Nixon took groundbreaking first steps to opening relations and formally recognizing the People’s Republic of China. The history of the aforementioned hostilities between the United States and the PRC dates back to the Chinese Communist Party’s takeover of mainland China following its civil war in the post-World War II era. When the PRC was formally proclaimed in 1949 towards the close of the Chinese Civil War, the United States decided against recognizing its establishment and instead chose to back Taiwan, also known as the Republic of China. This decision was a product of its political environment, as President Harry Truman had just established the Truman Doctrine, which sought to check presumed Communist and Soviet aims to expand. In order to remain consistent and credible with its containment policy, a precedent was set and relations between the United States and the PRC remained closed. Tensions were only exacerbated during the Korean War in the 1950’s as the PRC intervened on behalf of the North Koreans and during the War in Vietnam in the 1970’s in their support of the North Vietnamese. Thus it is understandable that to the public eye, Nixon’s meeting with Mao Zedong in 1972 seemed to come out of the blue and was difficult to interpret given the context of Sino-US relations in the two deca...

    Read More

  • The Chinese Exclusion Act

    1940 Words  | 4 Pages

    ...ent “this problem is too important to be treated with indifference” and must be solved before the United States turns into “practically provinces of China rather than States of the Union.”

    Read More

  • The One Child Policy in China

    2851 Words  | 6 Pages

    ...e economy. Since China and the United States have interconnected economies instability in China could lead to problems in the United States.

    Read More

  • The Perils of Implementing Arms Embargoes

    1817 Words  | 4 Pages

    Shambaugh, David, “Lifting the EU Arms Embargo on China: An American Perspective”, Discussion paper prepared for the CSIS/SWP conference “China’s Rise: Diverging U.S.- EU Approaches and Perceptions,” Berlin, April 28-29, 2005

    Read More

  • Compare and Contrast: China and The USA

    926 Words  | 2 Pages

    In United States the economy has changed over the years the government wants their people to be more competitive and more marketable compared to other country such china. Many people have come to the conclusion that China may be a threat in the near future because of their growing economy and increasing influence in the world.

    Read More

  • Foreign Trade with China

    2820 Words  | 6 Pages

    Zhang, Jianhong, Arjen van Witteloostuijn, and J. Paul Elhorst. "China's Politics and Bilateral Trade Linkages." Asian Journal of Political Science 19.1 (2011): 25-47. Academic Search Premier. Web. 13 Dec. 2013.

    Read More

  • Relations Between China and Taiwan

    1814 Words  | 4 Pages

    All three countries have political, economic, and national security issues involved and the United States and China are both in competition economically and militarily to be the greatest superpower in the world. All three countries have vowed to defend their national interest militarily; however, the prospects of going to war for any of the three are perilous indeed and the conflicts between China and Taiwan have continued into the early 21st century. .

    Read More

  • The Chinese Cultural Revolution

    1696 Words  | 4 Pages

    Hoobler, Dorothy, Thomas Hoobler, and Michael Kort, comps. China: Regional Studies Series. Upper Saddle River, New Jersey: Globe Fearon, 1993. 174-177.

    Read More

  • The Relationship between the US and China

    1491 Words  | 3 Pages

    From the beginning of their establishment, the bilateral relations between the United States of America and China have changed throughout the time. The bilateral relations of the two countries emerged from 1970’s with the ‘Ping-Pong’ diplomacy and there have been many pauses in their mutual relations. The US and China enjoyed cooperation in economic and military spheres and the mutual relations grew massively during until the end of 1990’s. The heads of the two states began visiting each other’s countries and the economic ties were tightening year by year. However, the issues of human rights and free speech declined mutual Sino-American relations. The American principle of democracy promotion and human rights protection minimized the Sino- American relations after the Tiananmen Square events in 1989, the US Presidents-George Bush and Bill Clinton- playing a key role in determining the further American foreign policy towards China.

    Read More

  • China: Rising to Be the Next Superpower?

    975 Words  | 2 Pages

    ...side of any trade partner with China because of its desire for cheap labor which has cost America countless manufacturing jobs (Rendell) and thus, making China a worthy adversary to claim number one spot for the world’s best economy.

    Read More

  • The Threat of China

    784 Words  | 2 Pages

    In the race to be the best, China is clearly outperforming the United States. China has strong economic fundamentals¬ such as “a high savings rate, huge labor pool, and powerful work ethic” (Rachman, Gideon. "Think Again: American Decline). Their economy has grown an astonishing 9-10% over the past thirty years; almost double of what it used to be decades ago. China is also the “world’s greatest manufacturer and its greatest market” (Rachman). The continuing growth of China's economy is a source of concern for not only the U.S. but surrounding nations as well. One could argue that the U.S. need not worry about China’s growth because of the spread of globalization and that western ideologies would influence China to turn to democracy. Yet China has still managed to “incorporate censorship and one party rule with continuing economic success” (Rachman) and remains a communist country. Hypothetically, even if China does resort to a democratic state, this does not gua...

    Read More

  • Philippine War

    579 Words  | 2 Pages

    Another policy that occurred because of the war was the “open door” policy. America had much interest in Asia, and the Philippines provided a door to China. America viewed China as a weak country, and was afraid that other countries might attack China, take over, and exploit it. The annexation of the Philippines gave America the opportunity to “protect” china. So the Americans proposed an open door policy, where each country in the treaty were allowed a place of influence, where china had to respect the laws of the countries, but were allowed to collect tariffs.

    Read More

  • World Politics: American Hegemony

    2936 Words  | 6 Pages

    Wei-Wei Zhang. (2004). The Implications of the Rise of China. Foresight, Vol. 6 Iss: 4, P. 223 – 226.

    Read More

More about China As Most Favored Nation

Open Document