Number: RL30225
Title: Most-Favored-Nation Status of the People's Republic of China
Authors: Vladimir N. Pregelj, Foreign Affairs, Defense, and Trade Division 
Abstract: Vladimir N. Pregelj, Foreign Affairs, Defense, and T0rade Division. China's most-favored-nation treatment by the United States is contingent on annual renewals of the status by the President, subject to congressional disapproval. Past disapprovals and other action to terminate or restrict China's MFN status have failed. Legislation to disapprove this year's renewal is under consideration. Termination of China's MFN status would bring about substantial increases in the cost and decreases in the volume of imports from China, affecting U.S. low-income consumers, but, in likely retaliation, also U.S. exporters and investors. Lack of China's permanent MFN status would complicate U.S.-Chinese trade relations should China be admitted to the World Trade Organization. This issue is the subject of legislative proposals.
Pages: 14
Date: Updated July 25, 2001