US - China

Chronology from Oct 2005 to Dec 2005

: U.S. imposes sanctions on six Chinese government-run companies under the Iran Nonproliferation Act for transfers that contribute to Iran’s ballistic missile chemical-weapons programs. Of the six, three had been previously sanctioned.

: House and Senate pass a concurrent resolution calling on the international community to condemn the Laogai, the system of forced labor prison camps in China.

: Delegation from China’s National Defense University headed by Rear Adm. Yang Yi, visits the Pentagon.

: Senate Republican Policy Committee policy paper on China’s legal commitments under WTO rules says that China has failed to fulfill its obligations, causing material harm to U.S. economic interests, and calls for measures such as countervailing duty to address these violations.

: USTR releases its 2005 Report to Congress on China’s WTO Compliance, noting that China is continuing to make progress in meeting its membership commitments, although serious problems remain in select areas such as IPR enforcement.

: Senior U.S. and Chinese defense officials conduct talks in Beijing on strengthening military cooperation. Deputy Under Secretary of Defense Richard Lawless and Zhang Bangdong, director of the Foreign Affairs Office of the Chinese Ministry of Defense, discuss military exchange programs and maritime military security.

: Acting Assistant USTR for Intellectual Property Victoria Espinel tells House Judiciary Committee that the administration is considering stronger actions against China and Russia if they fail to fulfill commitments to protect IPR.

: Second round of U.S.-China Senior Dialogue takes place in Washington followed by a visit to President Franklin Roosevelt’s home in Hyde Park, NY.

: Assistant Secretary Frazer disputes the Council of Foreign Relations report and says that Chinese interests are not in direct competition with those of the U.S., although the two countries differ on certain issues such as Sudan.

: A Council on Foreign Relations report finds China challenging U.S. interests and values in Africa, shielding “rogue states,” harming the environment, and thwarting anti-corruption drives, but stops short of calling China an adversary.

: Sen. Joseph Lieberman says in a speech at the Council on Foreign Relations that U.S. failure to cooperate with China to find alternate energy sources could lead to military conflicts over dwindling world oil reserves.

: Secretary Snow, upon the release of a required report to Congress on currency practices of major U.S. trading partners, says that China has demonstrated greater exchange rate flexibility by adopting a new exchange-rate mechanism, but it must do more to develop open capital markets “as quickly as possible.”

: Assistant Secretary of State for African Affairs Jendayi Frazer travels to Beijing to conduct talks with the Chinese Foreign Ministry on Africa as part of Deputy Secretary of State Robert Zoellick’s Senior Dialogue with China.

: Department of Energy’s National Nuclear Security Administration announces that the U.S. and China agree to cooperate on installing special equipment at Chinese ports to detect smuggling of nuclear and radioactive materials.

: U.S. Attorney General Alberto R. Gonzales holds talks with counterpart Minister of Public Security Luo Gan in Beijing on expanding cooperation between U.S. and Chinese law enforcement agencies. Gonzales calls for more substantive results in deporting criminal suspects, antiterrorism, fighting drugs, and protecting IPR.

: U.S. and China announce joint actions at bilateral, global, and regional levels to prevent and respond to avian and pandemic influenza, including vaccine development and testing, surveillance and rapid response, and preparedness planning.

: President Bush arrives in China, attends services at a state-sanctioned Protestant church in Beijing, and meets President Hu and Premier Wen Jiabao.

: President Bush delivers a speech in Kyoto, Japan in which he urges China to grant more political freedom to its people and cites Taiwan as an example of successful transition from repression to democracy.

: Sens. Chuck Schumer and Lindsey Graham announce that the Senate will delay consideration of a sweeping economic sanctions bill on China this year, but warn of reviving it next spring if they are not satisfied with China’s currency reform.

: Policy planning departments of the Department of State and the Chinese Ministry of Foreign Affairs hold a round of talks on regional and global issues.

: USTR Portman says at a conference in Beijing that the U.S. and China have a broad economic relationship that, for the most part, is mutually beneficial, but there are a number of issues that still need resolution. He expresses concern especially with the growing trade deficit with China, expected to top $200 billion in 2005.

: U.S.-China Economic and Security Review Commission releases annual report on China, concluding that “trends in the U.S.-China relationship have negative implications for the long-term economic and security interests of the United States.”

: The U.S. and China reach agreement on Chinese textile exports, covering more than 30 individual products and instituting quotas that will begin at low levels in January 2006 but will increase by about 3 percent each year until 2008, when safeguard measures are due to expire under WTO rules.

: Officials from the U.S. and China meet in Washington for the inaugural session of the Joint Committee on Environmental Cooperation, established to further scientific and technical cooperation on environmental issues between the U.S. Environmental Protection Agency and China’s State Environmental Protection Administration.

: In an interview with the Hong Kong-based, Chinese-owned Phoenix TV, President Bush says that he hopes to discuss free trade, intellectual property rights and, the currency issue, as well as areas of cooperation during his upcoming visit to China.

: State Department cites China as one of eight “countries of particular concern” for denying religious freedom in its 2005 International Religious Freedom Report to the Congress.

: Secretary of Commerce for Intellectual Property Jon Dudas travels to China to meet Chinese officials to track progress on commitments made by the Chinese government at a July 2005 meeting of the Joint Committee on Commerce and Trade.

: David Spooner, chief textile negotiator for the USTR, announces that the fifth round of textile talks made progress, but concluded without an accord. Both sides agree to extend a quota on imported socks from China until the end of 2005.

: The U.S. and China Business Councils for Sustainable Development sign agreement to collaborate on economic, social, and environmental projects, beginning with expanding the use of clean-burning bio-fuels, creating a more sustainable strategy for the cement industry, and implementing by-product synergy.

: U.S. State Department and Chinese Foreign Ministry hold consultations on arms control and nonproliferation. Director General of the MFA’s Department of Arms Control and Disarmament Zhang Yan heads Chinese delegation; the U.S. side is led by Assistant Secretary for International Security and Nonproliferation Steven G. Rademaker.

: Next round of textile talks between the U.S. and China opens in Washington.

: U.S. Trade Representative (USTR) Rob Portman announces in Geneva that the U.S. has initiated a special process under World Trade Organization (WTO) rules to obtain information on China’s intellectual property enforcement efforts. Japan and Switzerland separately submit similar requests.

: Secretary of Commerce Carlos Gutierrez calls on China to implement economic reforms, expressing concerns about practices such as providing subsidies for production costs and issuing loans to state-owned enterprises with no hope of repayment. He warns of “a risk of restrictions on commerce” in the absence of reform.

: Linton Brooks, head of the Department of Energy’s Nuclear Security Administration, announces Oct. 25 that the U.S. and China will step up cooperation on nuclear security at the week-long U.S.-China 2005 Integrated Nuclear Material Management Technology Demonstration.

: U.S. and China sign a bilateral aviation safety agreement to enhance air safety while reducing regulatory burdens and costs for airlines and aviation authorities of both countries, according to a Federal Aviation Administration press release.

: U.S. Trade and Development Agency announces that the U.S. and China have signed a $1.27 million technical assistance agreement aimed at promoting beneficial trade, cooperation in aviation standards and air safety practices, and government-industry collaboration, as part of the U.S.-China Aviation Cooperation Program launched in 2004.

: Secretary Rumsfeld visits China for the first time as President Bush’s secretary of defense. Rumsfeld meets with President Hu Jintao and his counterpart, Gen. Cao Gangchuan.

: State Department spokesperson congratulates the Chinese people on the successful conclusion of Shenzhou 6, the second Chinese manned space mission.

: Treasury Secretary Snow, Federal Reserve Chairman Alan Greenspan, and Securities and Exchange Commission Chairman Christopher Cox participate in U.S.-China Joint Economic Commission talks. A joint statement highlights agreement to cooperate in reforming and regulating financial markets and the need for currency stability.

: Richard Trumka, secretary treasurer of the AFL-CIO, urges the U.S. government to challenge more strongly China’s unfair manipulation of its exchange rate.

: U.S. and China fail to agree on a formula to regulate Chinese textile exports in the just concluded recent round of textile talks.

: Chinese conduct their second successful manned space launch, Shenzhou.

: U.S. and China begin another round of textile talks in Beijing.

: Visiting Japan, Snow urges China to adopt a more flexible, market-driven currency while applauding the recent upswing in Japan’s economy.

: Snow visits China where he meets with finance sector leaders and attends the G-20 meeting as well as U.S.-China Joint Economic Commission meetings.

: Treasury Secretary John Snow tells the Senate Finance Committee that upcoming U.S.-China Joint Economic Commission meetings in Beijing will be an opportunity to press the Chinese to overhaul their currency system more quickly.

: Sens. Evan Bayh, Debbie Stabenow, and Charles Schumer submit a resolution expressing the sense of the Senate that the International Monetary Fund should investigate whether China is manipulating the rate of exchange between the yuan and the dollar. The bill is referred to the Committee on Foreign Relations.  Schumer says in an interview that he will push forward legislation; which would impose 27.5 percent tariffs on imports from China in November if Beijing has not revalued the yuan by that time.

: The U.S. Committee for the Implementation of Textile Agreements accepts petitions from the U.S. textile industry to launch investigations into whether quotas should be imposed on 21 categories of clothing and textile imports from China.

: U.S. Treasury announces that a Treasury economic attaché, David Loevinger, will be posted in Beijing to deal with foreign exchange issues as well as energy and antiterrorism efforts.

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