US - China

Chronology from Apr 2005 to Jul 2005

: Secretary of Energy Samuel Bodman announces establishment of a Department of Energy office in Beijing to support cooperative efforts with China on energy and nuclear security issues. On the same day, the first meeting of the U.S.-China Energy Policy Dialogue was held in Washington.

:   Treasury Secretary Snow announces a compromise with authors of the Schuman/Grassley bill to postpone the July 27 vote on imposing a 27 percent tariff on Chinese goods until the fall.

: House International Relations Committee unanimously passes The East Asia Security Act of 2005, a bill that would impose a wide array of sanctions against countries and firms that sell arms to Beijing.

: House of Representatives votes 333-92 to block the Bush administration from approving CNOOC from acquiring U.S. oil and gas producer Unocal Corp.  In a separate nonbinding resolution, the House votes 398-15 in favor of an immediate review of the possible takeover. The resolution states that a CNOOC takeover of Unocal “would threaten to impair the national security of the United States.”

: Acting Under Secretary of Commerce for Industry and Security Peter Lichtenbaum testifies before a U.S.-China Economic and Security Review Commission hearing that “China poses particular challenges for U.S. dual-use export control policy, because there are immense potential benefits from expanding trade, but there are also serious security concerns.”

: Federal Chairman Greenspan warns members of the Senate Finance Committee that proposed tariffs against Chinese goods and other forms of protectionism would significantly lower U.S. living standards and would not save U.S. jobs.

: Kelly Ryan, deputy assistant secretary of state for the Bureau of Population, Refugees and Migration, urges the executive board of the UN Population to end its family planning program in China until Beijing stops using coercion, forced abortions, and punishment to enforce its one-child policy.

: CNOOC, China’s third-largest oil producer, offers to buy Unocal, a U.S. oil and gas company, for $18.5 billion in cash, topping the $16.6 billion Chevron bid.

: Haier, a Chinese appliance maker, joins two private equity firms in an offer to acquire all Maytag’s outstanding stock for $16 a share.

: China test-fires a new long-range, submarine-launched ballistic missile, believed to be the Ju Lang-2, according to reports by the Japanese government.

: China announces temporary anti-dumping measures against imported Furan phenol, a chemical raw material, from Japan, the U.S., and the EU.

: Secretary Rumsfeld, in an interview with BBC News, argues that China’s communist system will cause tension with the fast growing economy in the future and expects a loosening of the political system.

: Chinese Vice FM Yang Jiechi holds talks with Deputy Secretary of State Robert Zoellick and other senior U.S. officials.

: China and U.S. inter-parliamentary exchange groups hold the sixth round of regular meetings to discuss China-U.S. relations, Taiwan, parliamentary exchanges, trade issues, China’s peaceful development, and the DPRK nuclear issue.

: U.S. and Chinese parliamentary groups hold second work meeting since 2003 and exchange opinions on Sino-U.S. relations, Taiwan, parliamentary contact, economic and trade issues, and international and regional situations.

: Assistant Secretary Hill testifies before the Senate Foreign Relations Committee that China’s growing influence is a result of its economic success and not a zero-sum game for the U.S.

: In a meeting with Sheng Huaren, vice chairman and secretary general of the Standing Committee of China’s National People’s Congress, Bush says that he is looking forward to meeting with Hu later this year.

: Defense Secretary Donald Rumsfeld says in Singapore that China’s defense expenditures are much higher than published figures and its ability to project power is growing.

: On the 16th Anniversary of the Tiananmen Square protests, the U.S. government issues a statement calling on the Chinese government to account for its actions, reexamine the event, and allow its citizens to assemble, speak, and worship freely.

: U.S.-China Business Council, in its 2005 scorecard on China’s WTO commitments, finds that, despite demonstrable progress, many Chinese trade policies still violate WTO rules.

: Secretary Rice and FM Li hold a phone conversation and agree to enhance cooperation between the two countries in major global and regional affairs.

: China scraps export tariffs on 81 categories of clothing, in response to the EU’s decision to impose quotas as well as U.S. decision to re-impose restrictions on seven kinds of Chinese textile and clothing imports.

: Secretary of Commerce Carlos Gutierrez in Beijing urges China to speed progress on bilateral trade issues or risk an outbreak of protectionism that will hurt both countries’ economies and stresses the protection of intellectual property rights.

: Chinese Minister of Commerce Bo Xilai says that China is willing to handle the textile trade issues through consultations. He notes that the Chinese government hopes to maintain friendly economic cooperation with the U.S. and EU.

: Vice President Dick Cheney urges China to do more to revive the stalled Six-Party Talks on CNN’s “Larry King Live.”

: Office of the U.S. Trade Representative says that a Section 301 action is not appropriate or productive way to achieve the goal of changing China’s currency regime.

: Deputy  Assistant Secretary of Defense Richard Lawless warns the House International Relations Committee on the dangers of China’s military buildup and its potential impact on the security of Taiwan.  Assistant Secretary Hill also testifies.

: Treasury Secretary Snow defends his department’s report that stops short of branding China a currency manipulator in front of the Senate Banking Committee. He expresses confidence in U.S. policies and expects China to revalue the yuan before October.

: China threatens to renege on a promise to impose tariffs on textile products if the same items are subject to quotas overseas.

: China announces new tariffs on 74 types of goods, an increase of up to 400 percent, to begin on June 1.

: China’s Commerce Minister Bo Xilai calls quotas “unwise” and says that China will not adopt additional measures to curb its textile exports.

: Treasury Secretary Snow appoints Olin Wethington special envoy on China, responsible for issues related to exchange rate and financial market reform.

: Department of Commerce adds four more categories of textile and apparel products from China to the list subject to temporary quotas.

: Department of Treasury says in its Report to Congress on International Economic and Exchange Rate Policies that China’s exchange rate is a substantial distortion to world markets and a source of large risk to the Chinese economy, but falls short of designating China for currency manipulation.

: U.S. Chamber of Commerce and American Chamber of Commerce-China announce plans to cooperate in monitoring China’s enforcement of intellectual property rights laws.

: Chinese Vice Premier Wu Yi tells U.S. Ambassador to China Clark Randt that China hopes to resolve trade disputes through consultation and cautions against “mixing economic and trade problems with politics.”

: Chinese FM Li Zhaoxing talks with Secretary of State Rice on the phone on exchanging presidential visits within the year and other issues.

: Department of Commerce announces the imposition of temporary quotas on three categories of clothing from China after deciding that a surge in imports of those products from China is disrupting the U.S. market.

: Treasury Department and Chinese central bank officials hold talks on financial issues, including currency flexibility, and will hold more talks this summer.

: In a telephone conversation, Chinese President Hu Jintao and President Bush discuss North Korea, trade and economic ties, and Taiwan.

: Deputy Defense Secretary Paul Wolfowitz meets at the Pentagon with Lt. Gen. Xiong Guangkai as part of annual defense policy talks. The Chinese military continues to object to a proposal to set up a hot line between the Pentagon and its Beijing counterpart.

: U.S. trade representative’s office releases its special “Out-of-Cycle Review,” or OCR, of the IPR situation in China, concluding that the efforts to date, while serious, have not significantly reduced IPR crime across China.

: Chinese Customs puts forward a container security cooperation proposal with the U.S. to guard against terrorists hiding arms of massdestruction in containers. The two countries will post customs officers in each other’s ports.

: Senate passes a bill calling for the administration to address the lack of intellectual property protection in China and Russia and ensure that action is taken against any country in violation of its WTO commitments.

: Assistant Secretary of State Christopher Hill arrives in Beijing from Seoul and meets with Chinese vice foreign ministers Dai Bingguo, Yang Jiechi, and Wu Dawei to discuss bilateral relations, the Korean Peninsula nuclear crisis, and other issues.

: Federal Reserve Chairman Alan Greenspan says at a Senate Budget Committee hearing that China’s fixed exchange rate is taking a toll on the Chinese economy and must be eased sooner rather than later.

: Rep. Robert Portman, nominated as the next U.S. trade representative, vows during his confirmation hearing to order “a top-to-bottom review” of U.S. trade relations with China if confirmed.

: As a result of a joint U.S.-China investigation to enforce intellectual property laws, two Americans are sentenced in Shanghai for selling pirated DVDs on the Internet.

: Secretary of the Navy Gordon England, nominated as the new deputy defense secretary, says during his confirmation hearing that the U.S. must be prepared to meet any challenge from China.

: Treasury Secretary John Snow says after a G7 meeting of finance ministers that China has had long enough to prepare its financial system and is ready now to adopt a more flexible exchange rate.

: During an appearance before the American Society of Newspaper editors, President George Bush calls for China to float its currency, welcome all religions, cooperate in the war on terror, and keep peace with Taiwan.  He also attributed the surge in oil prices partly to China’s growing demand for energy.

: Congressional policy advisors and academics testify before the U.S.-China Economic and Security Review Commission that Chinese protests against Japan raise concerns that China could one day unleash popular wrath on the U.S. Susan O’Sullivan, senior adviser for Asia in the State Department’s Bureau of Democracy, Human Rights, and Labor, cites lagging political reform and repression of human rights as systematic problems.

: Under Secretary of State R. Nicholas Burns testifies before the House Committee on International Relations and the House Armed Services Committee that the U.S. strongly opposes a lifting of the EU arms embargo on China as it threatens peace and security in the region and would send the wrong signal. Assistant Secretary of Defense Peter Rodman and Acting Undersecretary of Commerce Peter Lichtenbaum also testify.

: China’s State Council issues a white paper on China’s human rights progress in 2004 in response to criticism from U.S. human rights groups and outlines “significant progress” in 2004.

: U.S. and China hold the inaugural U.S.-China Global Issues Forum in Washington, D.C. The sessions focus on clean energy and sustainable development, humanitarian assistance, poverty alleviation, development financing, law enforcement, and public health.

: State Department announces that the U.S. and China agree for the first time to hold regular, senior-level talks on a wide range of political and economic issues.

: U.S. textile and clothing industry asks the government to re-impose quotas on 14 categories of clothing to protect U.S. manufacturers after the Bush administration brought its own cases on different clothing products.

: U.S. Committee for the Implementation of Textile Agreements, chaired by the Department of Commerce, initiates safeguard proceedings on imports of Chinese textile and apparel products to determine whether quotas should be re-imposed.

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