For other versions of this document, see http://wikileaks.org/wiki/CRS-97-484
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                                                                    Order Code 97-484 F




      CRS Report for Congress
               Received through the CRS Web




     China-U.S. Relations: Chronology of
Developments During the Clinton Administration




                        Updated July 25, 2000




                        Kerry Dumbaugh
                    Specialist in Asian Affairs
                      with the assistance of
              Deborah Johnson and Patricia Nugent
           Foreign Affairs, Defense, and Trade Division




         Congressional Research Service ~ The Library of Congress
 China-U.S. Relations: Chronology of Developments During
                the Clinton Administration

Summary
      This report chronicles major developments in U.S.-China relations during the
Clinton Administration, and in the 103rd through the 106th Congresses, from late
1992 to 1999. Throughout this period, and since the 1989 crackdown in Tiananmen
Square, U.S.-China relations have been troubled, increasingly so in recent months.
There has been little agreement among policymakers over the direction of U.S. policy
in the post-Tiananmen era. In the wake of Tiananmen, President George Bush first
imposed sanctions on China, but later sought to protect the relationship in the face of
widespread and sometimes heated congressional opposition. Things did not improve
in the Clinton Administration. Relations remained uneven in 1993 and 1994, and by
1995 were deteriorating steadily. By mid-1995, U.S.-China relations were widely
characterized as being at their lowest point since the establishment of the relationship
in 1979. Tensions reached a zenith in March 1996 when China began conducting
ballistic missile exercises off the coast of Taiwan. The United States responded by
sending two carrier battle groups into the area.

      Positive developments in U.S.-China relations include the resumption of
summitry, beginning with the October 1997 visit of China's President Jiang Zemin to
the United States and continuing with the visit of President Clinton to China in June
1998. But more visible since 1998 have been the disappointments and setbacks in
U.S.-China relations. These include ongoing allegations that the Chinese government
was involved in questionable contributions to the presidential and other campaigns in
1996, and charges that U.S. aerospace companies may have transferred sensitive
satellite technology to China. On May 25, 1999, the Select Committee on U.S.
National Security and Military/Commercial Concerns with China -- the so-called
"Cox Committee -- released a 3-volume report alleging that China has systematically
conducted espionage in the United States since the 1970's, and has acquired U.S.
nuclear weapons secrets. Finally, on May 7, 1999, NATO forces accidentally bombed
the Chinese Embassy in Belgrade, resulting in mass anti-American protests in China
and accusations by Chinese leaders that the bombing was intentional.
Contents

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Chronology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

1992 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

1996 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
     China-U.S. Relations: Chronology of
Developments During the Clinton Administration

                                     Overview
     The Clinton Administration began in 1993 by rejecting what many opponents by
then referred to as the "failed" Bush Administration approach to China. As had Bush,
President Clinton renewed China's most-favored-nation (MFN) status, but Clinton
announced that he would link China's eligibility for MFN status in 1994 with its
progress on human rights. Congress supported this move, and rejected a measure to
disapprove MFN extension to China in 1993. U.S. relations with China remained
uneven for the rest of the year. For instance, U.S. officials imposed sanctions against
China for missile technology sales to Pakistan, and searched a Chinese ship thought
to be carrying chemical weapons ingredients (none were found). Congress passed a
resolution saying that China should be denied in its bid to host the 2000 Olympics,
which, according to Chinese officials, influenced the International Olympic Committee
to reach its negative decision. Still, bilateral trade continued to grow, and an
intermittent dialogue continued, including a series of high-level official visits late in
the year.

      Relations improved somewhat in 1994. Secretary of the Treasury Lloyd
Bentsen, Secretary of State Warren Christopher, Secretary of Defense William Perry,
and Secretary of Commerce Ron Brown all visited China. With Secretary Brown's
visit came $5 billion worth of contracts with China for U.S. businesses. The
Administration waived the sanctions it had imposed the previous year because of sales
to Pakistan, and China strengthened its commitment to the Missile Technology
Control Regime (MTCR). The Administration also "delinked" MFN from human
rights and renewed China's MFN status, reversing the policy direction it had begun
in 1993, and Congress enacted no new conditions for MFN. But underlying bilateral
tensions continued. China conducted two nuclear weapons tests over U.S. objections,
and the Administration disclosed that it would modestly increase contacts with
Taiwan, which Beijing protested strongly.

      Relations eroded steadily in 1995. A pivotal event in the downturn was the May
decision to allow Taiwan's president, Lee Teng-hui, to visit the United States.
Initially opposed to the visit, the Administration reversed itself under heavy
congressional pressure. The decision helped make Taiwan, once again, the central
contentious issue in U.S.-China relations. By mid-June, Beijing had recalled its
ambassador to the United States, postponed other high-level visits, and suspended
talks on a range of issues. Chinese officials charged the United States with violating
the 1978 Joint Communique, which established U.S. relations with the People's
Republic of China. Neither China's human rights image nor its U.S. relations were
helped by China's arrest and subsequent conviction of Harry Wu, a U.S. citizen and
                                       CRS-2

activist, on charges of spying. (Wu was later deported.) In October, President
Clinton met with China's President Jiang Zemin, but without bold breakthroughs in
relations. Chinese leaders were upset because the United States had insisted that the
meeting between the two presidents be held in New York, rather than as an official
summit in Washington.

      By early 1996, U.S.-China contacts were accompanied by a steady drumbeat of
harsh protests and invective from Chinese officials and official state media. Negative
developments in the relationship outnumbered positive ones early in the year. In
January, the Chinese government expelled a U.S. military attache and warned
repeatedly of the likelihood of military action in the Taiwan Strait. In early March,
Chinese military forces began conducting ballistic missile tests off the Taiwan coast;
in response, the Pentagon disclosed it had dispatched two U.S. carrier battle groups
to the area. In May, U.S. federal law enforcement officials ended a lengthy sting
operation, seizing a shipment of 2,000 Chinese-manufactured AK-47 assault weapons
being smuggled into the country by Chinese state-owned arms-trading companies.

      Although the United States announced in August 1996 that it would sell $420
million in military equipment to Taiwan -- a decision the Chinese objected to -- there
also were signs by mid-year that both countries were trying to repair the relationship.
U.S. officials made several decisions not to impose sanctions on China for arms sales
and intellectual property rights violations, and Members of Congress appeared to have
moderated their approach to China. By late in the year, Chinese leaders had muted
their past inflammatory rhetoric about the United States, and several high-level visits
had occurred. Chinese officials privately urged U.S. officials to "seize the
opportunity" of the improved atmosphere to move the relationship forward.
Subsequently, the improvements in U.S.-China relations have been marred by
allegations that the Chinese government may have been involved in questionable
contributions to the presidential and other campaigns in 1996 in an effort to influence
U.S. policy.

     In 1997, U.S. China policy analysts spent much of the first half of the year
focusing on Hong Kong's reversion to China, which occurred smoothly on July 1.
Since then, congressional interest in China has increased in intensity. By October,
more than a dozen legislative initiatives were pending which either moderately or
more seriously sanctioned China for things ranging from proliferation of weapons to
abuses of human rights and religious liberty to use of prison labor for producing
products for export. Many of the pending measures are strongly opposed by the
Administration, which is preparing for the first official Sino-U.S. summit of the
Clinton presidency, scheduled for October 28-29.

     A Note On Sources: The sources for some entries either are named or are clear
from the context. For most dated entries, sources include: the Washington Post, New
York Times, Washington Times, Asian Wall Street Journal, Reuters wireservice
reports, the Hong Kong Standard, South China Morning Post, and Foreign
Broadcast Information Service (FBIS) daily reports.
                                       CRS-3

                                 Chronology

                                       1992
09/14/92 --- In a press release from his campaign headquarters, then Governor and
             presidential candidate Clinton commended the U.S. Senate for placing
             conditions on China's most-favored-nation (MFN) status, and
             criticized the Bush Administration's China policy, saying "The
             Administration policies have led the Chinese leaders to believe they
             are free to take whatever actions they please without a meaningful
             response from the United States."

11/05/92 --  Beijing's first official reaction to the election of Clinton was to
             congratulate him, and to state that any attempt to establish conditions
             on China's MFN status was "unacceptable to China."
12/02/92 --- President-elect Clinton stated that he hoped the United States could
             play a constructive role in relieving tensions and concerns in Hong
             Kong.


                                       1993
01/14/93 --    China joined 125 other countries in signing the convention banning
               chemical weapons. Foreign Minister Qian Qichen signed the
               document in Paris.

01/19/93 --    President Clinton named former Ambassador to China Winston Lord
               as his designee for Assistant Secretary of State for East Asia and
               Pacific Affairs.

04/29/93 --    China & Taiwan signed an accord in Singapore which pledged closer
               cooperation on trade, technology exchanges, copyright protection,
               anti-crime efforts, and repatriation of illegal immigrants. The semi-
               official talks which led to the agreement were the highest-level
               exchanges between the two since 1949.

05/18/93 --    Secretary of State Warren Christopher said that the Clinton
               Administration would consider linking China's MFN status to Chinese
               willingness to end coercive family planning practices, including forced
               abortions.

05/28/93 --    President Clinton, in Presidential Determination 93-23, recommended
               renewal of his authority to extend China's MFN status for another
               year. But at the same time, in Executive Order 12850, the President
               indicated that he would consider new human rights criteria in
               considering the MFN renewal in 1994.
                                      CRS-4

07/21/93 --   By a vote of 105-318, the House defeated H.J.Res. 208, a resolution
              that would have disapproved the President's recommendation for
              extension of China's MFN status for another year.

08/08/93 --   Beijing lodged a strong protest accusing Washington of harassing a
              Chinese ship, the Yinhe. Washington said the ship was believed to be
              carrying chemical weapons bound for Iran.

08/24/93 --   The United States announced it would impose sanctions on China,
              required by U.S. law, because of China's sale of missile technology to
              Pakistan. The Chinese government lodged a strong protest.

09/04/93 --   An inspection, watched by U.S. observers, of the Chinese ship, the
              Yinhe, revealed no chemical weapons ingredients on board. The
              Chinese filed another strong protest after the search.

09/23/93 --   The International Olympics Committee rejected Beijing's bid for the
              2000 Olympics in favor of the bid of Sydney, Australia.

09/25/93 --   National Security Advisor Anthony Lake met China's Ambassador to
              the U.S., Li Daoyu, to initiate efforts to restore high-level U.S.-China
              contacts across the board.

10/05/93 --   China conducted an underground nuclear test, despite a U.S. call in
              July for an informal ban on such testing.

10/12/93 --   John Shattuck, Assistant Secretary of State for Human Rights, visited
              Beijing to initiate a dialogue on human rights issues.

10/15/93 --   Secretary of Agriculture Mike Espy went to Beijing to discuss China's
              purchases of U.S. grains, especially wheat

11/01/93 --   Assistant Secretary of Defense Charles Freeman began two days of
              talks in Beijing; they were the highest-level military talks between the
              two countries since Tiananmen Square in 1989.

11/03/93 --   U.S.-China military talks in Beijing concluded with an agreement to
              a "modest" agenda of future dialogue and professional exchanges on
              such topics as international peacekeeping operations and conversion
              of defense industries to civilian use.

11/17/93 --   270 Members of the House of Representatives signed a letter to
              President Clinton expressing their concern over China's lack of
              progress in meeting human rights objectives

11/18/93 --   Secretary of State Christopher announced the United States was
              dropping its opposition to the sale of an $8 million Cray
              supercomputer to China.
                                      CRS-5

                                      1994
01/01/94 --   China unified its dual exchange rates, effectively devaluing the yuan
              by 33%. The yuan's official rate, formerly 5.8 to the dollar, was
              brought into line with the swap rate of 8.7. Foreign Exchange
              Certificates (FEC) are being phased out under the new system.

01/06/94 --   The United States announced it would slash China's textile quotas by
              25-30% in retaliation for China's illegal textile shipments.

01/20/94 --   Chinese officials told U.S. Treasury Secretary Lloyd Bentsen, in
              Beijing, that they will permit U.S. Customs officials to inspect 5
              prisons alleged to be producing goods for export in violation of U.S.
              law. The concession puts China in compliance with a U.S.-China
              Memorandum of Understanding (MOU) on prison labor, signed in
              1992, which had become moribund after 2 U.S. site visits. According
              to a New York Times report, China is to respond to U.S. requests for
              information about specific prisons and allow more frequent visits by
              U.S. Customs officials. The United States is to report to China on
              any violations uncovered by U.S. visits.

01/21/94 --   Reportedly, U.S. Treasury Secretary Lloyd Bentsen presided over the
              reactivation of the China-U.S. Joint Economic Committee, which had
              been shut down since TAM in 1989.

01/24/94 --   Secretary of State Warren Christopher met with China's Foreign
              Minister Qian Qichen in Paris. Prior to the meeting, the Secretary told
              reporters that China was still not in compliance with President
              Clinton's conditions for securing MFN in 1994.

01/30/94 --   Senator Sam Nunn, Chairman of the Senate Armed Services
              Committee, said on NBC's "Meet the Press" that withdrawing MFN
              from China is "too heavy a weapon" when the U.S. needs China's help
              in stopping the North Korean nuclear threat.

03/11/94 --   Secretary of State Warren Christopher arrived in Beijing for three
              days of talks about human rights and China's MFN status.

05/26/94 --   President Clinton announced that he would be recommending the
              renewal of China's MFN status despite the fact that they did not make
              the significant progress on human rights that he had made a condition
              of MFN renewal in 1993 (Executive Order 12850). In making the
              announcement, the President said he was "delinking" MFN from
              China's human rights record. The President also announced that he
              was imposing an embargo on the import of certain guns and munitions
              from China.

05/28/94 --   The arms import embargo against China went into effect.
                                      CRS-6

06/02/94 --- In Presidential Determination 94-26, President Clinton recommended
             an extension of China's most-favored-nation status for another year.

06/10/94 --- China conducted a nuclear weapons test.            The United States
             expressed regret.

08/09/94 --    The House defeated H.J.Res. 373, legislation that would have
               disapproved the President's recommendation to extend MFN to China
               and delink it from human rights concerns, and rejected a bill by
               Representative Pelosi to limit the extension of MFN to China.

08/17/94 --    Secretary of Defense Perry met with a visiting deputy Chief of Staff
               of the Chinese Army in Washington.

09/02/94 --- Secretary of Commerce Brown left China after a visit marked by the
             signing of over $5 billion worth of contracts involving U.S.
             businesses.

09/07/94 --- The Clinton Administration disclosed a Taiwan policy review that
             promised modestly increased contacts with Taiwan. Beijing issued an
             official protest.

10/04/94 --- The United States and China issued a joint statement on China's
             adherence to the Missile Technology Control Regime. The U.S.
             promised to waive sanctions imposed on August 23, 1993, allowing
             the export of high technology satellites to China.

10/07/94 --- China conducted a nuclear weapons test, its second in 1994.

10/19/94 --- Defense Secretary Perry ended four days of talks in Beijing, resuming
             high-level military ties that had been suspended in 1989 as a result of
             the Tiananmen Square crackdown.

11/01/94 --- The Administration lifted sanctions it had imposed on China on
             August 24, 1993, after China's export to Pakistan of items listed in
             category II of the Annex of the Missile Technology Control Regime
             (MTCR).

12/07/94 --- The Los Angeles Times reported that China had threatened to end
             commercial agreements with the United States if the Clinton
             Administration did not acquiesce in China's entry into GATT by
             year's end.
                                       CRS-7

                                       1995
01/15/95 --- Assistant Secretary Shattuck left Beijing after fruitless talks on human
             rights.

02/01/95 --- The U.S. trade deficit with China grew in 1994 to almost $30 billion.


02/04/95 --- The United States imposed trade sanctions worth over $1 billion
             because of an intellectual property rights dispute with China; China
             immediately announced comparable sanctions against the United
             States.

02/22/95 --- China protested U.S. support for a UN resolution critical of Chinese
             human rights conditions.

02/26/95 --- A U.S.-Chinese agreement on intellectual property rights disputes was
             signed, averting a U.S.-China trade conflict threatening $2 billion in
             annual trade.

03/12/95 --- The United States and China signed an 8-point agreement to assist
             China's entry into the World Trade Organization.

03/22/95 --- A U.S. warship visited China for the first time in 6 years.

03/27/95 --- Clinton Administration efforts to come up with a code of conduct for
             U.S. firms doing business in China and elsewhere were criticized by
             congressional and other U.S. human rights advocates.

03/31/95 --- A legally required U.S. State Department report of March 31, 1995,
             warned of potential uncertainties in Hong Kong's legal and political
             systems if greater Sino-British progress on these issues were not made
             prior to July 1, 1997. The report also urged the two parties to seek
             agreement allowing Hong Kong's Legislative Council to continue in
             office after July 1, 1997, to set up a Court of Final Appeal, and to sort
             out differences over an ambitious ship container project. Finally, the
             report discussed problems of media self-censorship and discontent in
             the Hong Kong civil service.

04/06/95 --- A Chinese Foreign Ministry spokesman criticized the "irresponsible
             comments" of the U.S. State Department's report on Hong Kong.

05/02/95 --- By a vote of 396-0, the House passed H.Con.Res. 53, a bill expressing
             the sense of Congress that Taiwan's President, Lee Teng-hui, be
             allowed to visit the United States.

05/05/95 --    By a vote of 97-1, the Senate passed H.Con.Res. 53, a bill expressing
               the sense of Congress that Taiwan's President, Lee Teng-hui, be
               allowed to visit the United States.
                                      CRS-8

05/09/95 --- State Department officials said that a visit to the United States by
             Taiwan's President, Lee Teng-hui, would have "serious consequences
             for U.S. foreign policy."

05/17/95 --- A Clinton Administration spokesman told the press that the
             Administration had set up a task force on Hong Kong as of mid-
             March, 1995.

05/22/95 --- President Clinton agreed to allow Taiwan's President to make a
             private visit to his alma mater in the United States. Beijing protested
             strongly.

05/26/95 --- China postponed the planned visit of its defense minister to the United
             States.

06/02/95 --- In Presidential Determination 95-23, President Clinton recommended
             an extension of China's most-favored-nation status for one year.

06/16/95 --- China withdrew its ambassador from the United States in protest over
             the U.S. decision to allow Taiwan President Lee Teng-hui to visit the
             United States.

06/19/95 --- Chinese authorities detained Harry Wu, although he had a valid U.S.
             passport and Chinese visa, at the Chinese border post of Horgas.

07/20/95 --- The House passed H.R. 2058, The China Policy Act of 1995, by a
             vote of 460-10, and tabled H.J.Res. 96 (denying extension of MFN)
             by a vote of 321-107.

08/15/95 --- China began ten days of naval exercises and live ballistic missile test
             firings in the Taiwan Strait.

08/24/95 --- China convicted Harry Wu of spying, sentenced him to 15 years in
             prison, and expelled him from the country.

09/04/95 --- The 4th U.N. International Women's Conference began in Beijing and
             Huairou, a suburb of Beijing. Hillary Clinton attended the conference.

10/24/95 --- President Clinton and China's President and Party Secretary, Jiang
             Zemin, held a "summit meeting" in New York to try to resolve U.S.-
             China tensions. U.S. officials had not agreed to an official state visit
             in Washington, D.C.

11/17/95 --- Assistant Secretary of Defense Joseph Nye visited Beijing.
                                       CRS-9

                                       1996

01/19/96 --- China expelled a U.S. military attache.

01/24/96 --- The New York Times reported on a series of explicit warnings from
             Chinese leaders to the United States over the likelihood of military
             action in the Taiwan Strait.

02/06/96 --- Wang Jun, President of China's CITIC and Chairman of Poly
             Technologies (a Chinese military company) attended a White House
             reception with President Clinton.

02/06/96 --- President Clinton issued a waiver of restrictions on U.S. satellite
             exports to China, contained in the Foreign Relations Authorization
             Act (P.L. 101-246), saying that it was in the national interest to export
             U.S.-origin satellites to China for the CHINASAT project.

02/15/96 --    A Chinese rocket carrying a $200 million Loral satellite crashed after
               take-off. The incident triggered a series of actions ultimately
               culminating in accusations that Hughes and Loral illegally gave
               sensitive launch information to China. (See entry for April 13, 1998.)

02/22/96 --    CIA Director John Deutch complained in an open hearing about
               Chinese sales of cruise missiles to Iran, ring magnets to Pakistan, and
               M-11 missiles to Pakistan.

03/96     --   President Clinton made a decision to shift major licensing
               responsibility for almost all U.S. satellites from the State Department
               to the Department of Commerce. The decision was welcomed by
               U.S. space corporations, since the Commerce Department factors in
               economic concerns in making licensing decisions. (The State
               Department looks at security concerns in making export license
               decisions.)

03/08/96 --- PRC military forces began conducting ballistic missile exercises
             targeting two impact areas near Taiwan. The actions were vigorously
             condemned by the Clinton Administration and Congress.

03/10/96 --- Amid repeated U.S. official condemnations of PRC missile tests and
             planned live-fire exercises in the Taiwan Strait, the Pentagon disclosed
             that two U.S. carrier battle groups had been ordered to the area.

03/22/96 --- Secretary of Defense William Perry postponed China's Defense
             Minister's visit to the United States.

03/23/96 --- In Taiwan's first popular election for President, Lee Teng-hui was
             elected by 54% of the vote in a four-candidate field.
                                       CRS-10

04/30/96 --- The USTR designated China as a "priority foreign country" under
             "Special 301" trade sanctions provisions for not fully complying with
             an earlier, February 1995 intellectual property rights agreement.

05/10/96 --- The U.S. State Department declared that no sanctions would be
             imposed on China linked to Chinese sales of "ring magnets" to
             Pakistan, and the Export-Import (Exim) Bank resumed normal
             consideration of loans for U.S. exports to China.

05/10/96 --    According to a New York Times report of April 13, 1998, this was the
               day a review commission that included Hughes and Loral Space and
               Communications scientists completed and provided to China a report
               discussing sensitive aspects of rocket guidance and control systems --
               an area of weakness in Chinese missile programs. The commission
               conducted the review as a result of the Feb. 15 crash of a Chinese
               rocket launching a Loral communications satellite. The Loral satellite
               had been granted an export license as a result of a Presidential waiver
               of restrictions in P.L. 101-246 that relate to satellite exports to China.

05/11/96 --- China pledged not to provide assistance to unsafeguarded nuclear
             facilities.

05/15/96 --- The USTR declared it would impose sweeping sanctions on China by
             June 17 unless China took steps to adequately enforce the terms of its
             1995 agreement with the United States on intellectual property rights.

05/20/96 --- President Clinton announced that he would be requesting an extension
             of China's most-favored-nation (MFN) trading status.

05/22/96 --- Federal law enforcement agents began seeking arrests of Chinese arms
             dealers for smuggling 2,000 AK-47 assault weapons through Oakland
             on March 18, 1996. According to court papers, two Chinese state-
             owned arms trading companies were involved: Poly Technologies,
             and Norinco.

05/31/96 --- In Presidential Determination 96-29, President Clinton extended
             China's most-favored-nation trading status for one year.

06/11/96 --- In an interview with the Financial Times, China's Premier, Li Peng,
             warned that China would give more contracts to non-American
             companies unless the United States stopped pressuring China to
             change its policies.

06/12/96 --- Assistance Secretary of State Winston Lord, testifying before the
             House Ways and Means Committee, sharply criticized Japan and U.S.
             European allies for exploiting U.S.-China tensions for their own
             economic benefit.
                                     CRS-11

06/13/96 --- The Washington Times reported that the State Department had
             announced the United States would impose sanctions on China if M-
             11 missiles sold to Pakistan were deployed.

06/17/96 --- U.S. Trade Representative Charlene Barshefsky announced that the
             United States was now satisfied that China was taking steps to honor
             its 1995 commitments on intellectual property rights, and that, as a
             result, the United States would not carry out its threat to impose
             sanctions on China.

06/21/96 --- In Presidential Determination 96-33, President Clinton reconfirmed
             satisfactory Chinese reciprocation of U.S. tariff and nontariff barrier
             reductions, thereby extending the U.S.-China trade agreement through
             January 31, 1998.

06/27/96 --- On June 27, 1996, the House rejected (141-286) H.J.Res. 182, a
             resolution that would have disapproved the President's
             recommendation to extend China's MFN status for another year. At
             the same time, the House agreed to a compromise resolution requiring
             four House committees to hold hearings before September 1, 1996,
             about various ongoing problems in U.S.-China relations.

07/04/96 --- Representative Gerald Solomon, in an essay in the Washington Times,
             criticized the Administration's "policy of unmitigated appeasement"
             toward China by, among other things, willingness to extend China's
             most-favored-nation trading status.

07/10/96 --- U.S. National Security Advisor Anthony Lake wrapped up a visit to
             China, one of what was considered to be a series of indicators that
             U.S.-China relations were improving. Reportedly, the visit resulted
             in an agreement to create a high-level commission to promote closer
             U.S.-China business relations.

07/24/96 --- The United States and China announced a series of high-level visits in
             an effort to improve U.S.-China relations. These included visits to
             China by Secretary of State Warren Christopher U.S. Undersecretary
             of State Lynn Davis, and Director of the Arms Control and
             Development Agency John Holum; and visits to the United States by
             Defense Minister Chi Haotian and security advisor Liu Huaqiu.

07/24/96 --- In an essay in the Christian Science Monitor, Senator Frank
             Murkowski proposed giving China permanent most-favored-nation
             status as a way of increasing U.S. leverage in World Trade
             Organization (WTO) accession talks for China and Taiwan.

07/30/96 --- The PRC announced a moratorium on nuclear testing, after the latest
             test on July 29.

08/23/96 --- Despite China's strong objections, the Pentagon announced that it
             would sell $420 million worth of military equipment to Taiwan,
                                     CRS-12

               including Stinger missiles, guided-missile launchers, and Humvee
               vehicles.

08/25/96 --- Citing a classified National Intelligence Estimate, the Washington Post
             reported that U.S. intelligence officials believe Pakistan is secretly
             building a missile factory with China's assistance in order to
             manufacture missiles modeled after the Chinese-designed M-11
             missile.

08/27/96 --- China sharply criticized a U.S. decision to sell Stinger missiles and
             other military equipment to Taiwan, saying the move would further
             damage U.S.-China relations.

09/02/96 --- News reports indicated that China had begun a serious crackdown on
             Muslim separatists in Xinjiang Province.

10/30/96 --- China sentenced dissident Wang Dan to 11 years in prison.

11/05/96 --- Undersecretary of State for Arms Control and International Security
             Affairs, Lynn Davis, concluded a visit to Beijing.

11/19/96 --- U.S. Secretary of State Warren Christopher began a visit to China. In
             a speech on November 21 at Fudan University in Shanghai, he
             articulated the Administration's policy toward China.

11/21/96 --- Citing a CIA report, the Washington Times reported that China
             agreed to supply Iran with gyroscopes, accelerometers, and test
             equipment for missile guidance, and sold to Iran missile technology,
             advanced radar components, and nearly 400 tons of chemicals used to
             produce nerve agents.

11/24/96 --- President Clinton held an official meeting with President Jiang Zemin
             at the APEC leaders' meeting in Manila, at which they agreed to
             exchange state visits within the next two years.

11/29/96 --- China declared that it does not, did not, and will not sell or transfer
             any nuclear weapons-related technology or missiles to any country.

12/01/96 --- China and Pakistan announced they would continue their nuclear
             cooperation.

12/03/96 --- The U.S. Army announced the award of a $63 million contract to
             Boeing to produce anti-aircraft missile systems for Taiwan.

12/04/96 --- In its 1997 report, Human Rights Watch criticized countries, including
             the United States, for maintaining that trade and political
             "engagement" policies would advance human rights in countries like
             China.
                                      CRS-13

12/05/96 --- Assistant Secretary of State Winston Lord voiced opposition to
             China's efforts to disband Hong Kong's elected legislature and replace
             it with a provisional body.

12/05/96 --- China's Minister of Defense, General Chi Haotian, began a 13-day
             visit to the United States. During his visit, the General generated
             controversy by defending the government's military action in
             Tiananmen Square, denying that any deaths occurred in Tiananmen
             Square, and refusing to renounce the use of force to reclaim Taiwan.


12/09/96 --- President Clinton and Secretary of Defense William Perry met with
             visiting Chinese Minister of Defense, General Chi Haotian. Beijing
             agreed in principle to allow U.S. warship visits to Hong Kong after its
             return to China.

12/11/96 --- China's Selection Committee chose Hong Kong shipping magnate
             Tung Chee-hwa as Hong Kong's first post-colonial chief executive.

12/15/96 --- News reports indicated that China agreed to open its insurance, stock,
             retail, wholesale, and banking sectors to foreign investment from 1997
             to 2000 as part of a unilateral action plan submitted at the Asia-Pacific
             Economic Cooperation (APEC) summit.

12/18/96 --- The House International Relations Committee, Subcommittee on
             International Relations and Human Rights, held hearings on the 1989
             Tiananmen Square crackdown.

12/20/96 --- President Clinton said that it was inappropriate for him to have met in
             February 1996 at the White House with Mr. Wang Jun, the head of a
             Chinese investment company and Chinese weapons trading company,
             which was under investigation for illicit arms trading and whose
             representatives have been charged with smuggling military assault
             rifles into the United States.

12/20/96 --- The United States and Hong Kong signed an extradition agreement
             that allows each government to extradite suspects sought by the other,
             and prevents Hong Kong from sending extradited crime suspects to
             a third jurisdiction after Hong Kong's reversion to Chinese rule.

12/21/96 --- China's Selection Committee chose a 60-member provisional
             legislature to replace Hong Kong's elected Legislative Council on July
             1, 1997. Critics of the move to dissolve the current, elected
             legislature and replace it with the appointed provisional body have
             strongly urged China to allow the duly elected legislature to finish its
             term.

12/23/96 --- Taiwan's political leaders proposed major political changes, including
             increasing presidential powers and halting all provincial elections.
                                      CRS-14

12/24/96 --- China announced that it had drafted legislation to eliminate the
             political crime "counterrevolution" and replace it with statutes against
             acts that "jeopardize state security." (This was later enacted in the
             National People's Congress March, 1997 session.)

12/28/96 --- China sentenced a Tibetan music expert, Ngawang Choepel, to 18
             years in prison for an alleged political crime.

12/31/96 --- News reports indicated that China sentenced dissident Li Hai to nine
             years in prison.


                                       1997
01/01/97 --- China implemented reforms of its criminal procedures which included
             a 30-day limit on administrative detention.

01/06/97 --- The State Department issued a transit visa to Taiwan's Vice President
             Lien Chan for travel to the United States in January.

01/14/97 --- President Jiang Zemin met in Beijing with a 22-member U.S.
             congressional delegation.

01/15/97 --- China returned to U.S. officials the remains of airmen killed in the
             country during World War II during a repatriation ceremony in
             Beijing.

01/20/97 --- A subgroup of China's Preparatory Committee submitted legislation
             to Parliament to amend or repeal 25 Hong Kong laws and protections
             on civil liberties.

01/27/97 --    An aide to Senator Jesse Helms said that the Senator was considering
               introducing a bill to ban members of Hong Kong's provisional
               legislature from entering the United States after the return to Chinese
               rule.

01/28/97 --    In a press conference, President Clinton said that his policy of
               "constructive engagement" with China had not brought about the
               progress on human rights that he had hoped for.

01/30/97 --    The State Department issued its 1997 human rights report which
               accused China of silencing virtually all public dissent in 1996 through
               intimidation, exile, imposition of prison terms, administrative
               detention or house arrest.

02/02/97 --    The United States and China reached a 4-year textile agreement
               extending current quotas for Chinese textile and apparel exports to the
               United States, but providing reduced quotas in categories where
               repeated textile transshipments have occurred. China also promised
                                     CRS-15

              to allow U.S. textile and apparel products greater access to the
              Chinese market.

02/02/97 --   China's Preparatory Committee, the group charged with establishing
              Hong Kong's government following its reversion to China on July 1,
              1997, approved recommendations to curtail the colony's civil liberty
              laws and protections.

02/03/97 --   Taiwan President Lee Teng-hui, in a television interview, rejected
              Beijing's "one country, two systems" proposal for re-unification.

02/06/97 --   China's official media charged that the U.S. State Department Report
              on Human Rights, issued January 1, 1997, contained "malicious
              attacks on and lies about China's human rights situation."

02/13/97 --   The Washington Post reported that the Justice Department's
              investigation into improper political fund-raising practices had
              revealed through sensitive intelligence information illegal attempts by
              the Chinese government to funnel contributions from foreign sources
              to the Democratic National Committee before the 1996 presidential
              campaign. Beijing dismissed the allegations as a "fabrication."
              President Clinton said the allegations must be "thoroughly
              investigated."

02/16/97 --   Congressional leaders reported that committees investigating
              improper political fund-raising practices would expand their inquiries
              to include allegations of the Chinese government's efforts to buy
              Administration influence.

02/19/97 --   Deng Xiaoping, 92, reportedly died of respiratory failure, prompting
              a six-day official mourning period in China. Stock markets in China,
              Hong Kong, and Taiwan fell following the news, but quickly
              rebounded.

02/23/97 --   James Wood, the former head of the American Institute in Taiwan,
              alleged he was forced from his job in January 1997 for attempting to
              expose widespread corruption in the organization.

02/24/97 --   Secretary of State Madeleine Albright cut short talks in Beijing due to
              Deng Xiaoping's funeral, but expressed appreciation that Chinese
              leaders were willing to go ahead with her scheduled visit under the
              circumstances. After the visit, Albright announced that both sides had
              agreed to begin expert-level talks on disputed non-proliferation issues.

02/25/97 --   Bombings in Urumqi, in China's northwest, killed at least two people
              and injured 27. News reports indicated suspicion of Muslim
              separatists in the region.

02/28/97 --   The Washington Post reported that the FBI was conducting a broader
              investigation, beyond possible election law violations, into whether
                                     CRS-16

              representatives of China attempted to buy influence among Members
              of Congress through illegal campaign contributions and payments
              from Chinese-controlled businesses.

02/29/97 --   The twenty-fifth anniversary of the signing of the Shanghai
              Communique with China, a landmark document signed by President
              Richard Nixon and Chairman Mao Tse-tung, paving the way for the
              eventual establishment of U.S.-China relations.

03/03/97 --   China's National People's Congress approved a national defense law
              at its annual session, a move for "safeguarding national security and
              transforming China into a lawful society," according to a notice issued
              by the Propaganda Department of the CCP Central Committee, the
              Ministry of Justice, and the General Political Department of the
              People's Liberation Army.

03/03/97 --   Representative Ewing introduced H.R. 941, a bill to grant permanent
              MFN status to China on the day it becomes a member of the World
              Trade Organization (WTO).

03/11/97 --   By a vote of 416-1, the House passed H.R. 750 (introduced by
              Representative Bereuter), the Hong Kong Reversion Act, making a
              number of declarations about Hong Kong's transfer to China on July
              1, 1997, and requiring the Administration to submit additional reports
              on issues involving Hong Kong's reversion to Chinese sovereignty.

03/14/97 --   U.S. Trade Representative Charlene Barshefsky stated at a
              congressional hearing that China must make more significant market
              access concessions before it can join the World Trade Organization.

03/24/97 --   Vice President Gore began a visit to China -- the highest level U.S.
              visit to China since 1989.

03/27/97 --   The Dalai Lama, spiritual leader of Tibet, visited with Taiwan's
              President Li Teng-hui in Taipei. The visit was denounced by Beijing.

03/28/97 --   Speaker of the House Gingrich met with senior Chinese leaders in
              Beijing.

04/01/97 --   Federal law enforcement officials confirmed that "substantial" wire
              transfers were made in 1995 and 1996 from the Bank of China to
              Charles Trie, an Arkansas businessman under investigation for
              questionable contributions to President Clinton's and other officials'
              election campaigns. At issue are allegations of illegal U.S. election
              campaign contributions by foreign governments attempting to
              influence U.S. policy. The Chinese government, which owns the Bank
              of China, denied any wrongdoing.
                                     CRS-17

04/03/97 --   The Exxon Corp. announced that its affiliates in Zhejiang and Tianjin
              would build two tube oil blending facilities (their first), each with a
              capacity of 250,000 barrels per year, in Tianjin and Ningbo.

04/07/97 --   China announced it would loosen state controls on import rights for
              six commodities: rubber, steel, wood, wool, acrylic fiber, and
              plywood, to improve its chances of entry into the WTO. The
              government will retain controls on imports of six other commodities:
              wheat, crude oil, oil products, fertilizer, cotton, and tobacco.

04/07/97 --   The United States and Hong Kong signed a bilateral agreement on Air
              Services.

04/09/97 --   House International Relations Committee Members held a private
              meeting in Washington D.C. with Martin Lee, Chairman of the
              Democratic Party in Hong Kong..

04/10/97 --   The Defense Security Assistance Agency gave notice to Congress by
              letter of transmittal (Transmittal No. 3-97) about a proposed lease of
              defense articles and services to the Taiwan Economic and Cultural
              Representative Office (TECRO), pursuant to Sec. 62(a) of the AECA.
              (Exec. Comm. 2698) (On the same day, a similar notification by the
              Dpt. of State; Exec. Comm. 2700)

04/10/97 --   The Senate Foreign Relations Committee held a hearing on law
              enforcement issues in Hong Kong featuring Administration witnesses
              and Martin Lee.

04/15/97 --   The United States and Hong Kong signed the Mutual Legal
              Assistance in Criminal Matters Agreement (MLA) and the Transfer of
              Sentenced Prisoners Agreement (TSP).

04/18/97 --   Hong Kong's Martin Lee, Chairman of the Hong Kong Democratic
              Party, met with President Clinton and Vice President Gore at the
              White House. The meeting took place in the Vice President's office,
              with the President "dropping by" for the final half of the meeting.

04/21/97 --   Buddhist Abbot, Chadrel Rimpoche, was sentenced to six years in
              prison for communicating with the Dalai Lama regarding the
              successor to the Panchen Lama.

04/21/97 --   The Dalai Lama, spiritual leader of Tibet, began a four-day visit to
              Washington D.C.

04/23/97 --   The Dalai Lama met with President Clinton at the White House.

04/25/97 --   The United States announced that the "present visa validity for 10
              years for multiple entries for temporary visits will be extended to
              eligible holders of future Hong Kong Special Administration Region
                                     CRS-18

              (HKSAR) passports." (quote from April/May 1997 Hong Kong
              commissioner newsletter.)

04/27/97 --   The U.S. Department of Defense issued new policy guidance on U.S.-
              China defense relations, following the visit of China's Minister of
              Defense, Chi Haotian, in the way of the Taiwan Strait crisis. The
              guidelines noted that appropriate categories of U.S.-China military
              activity include: high-level visits; functional exchanges; participation
              in multinational security fora; and establishment of confidence-
              building measures.

04/29/97 --   China's Foreign Minister, Qian Qichen, arrived in Washington for a
              series of meetings with U.S. officials. Among his comments about
              Hong Kong, he said that under China's rule, "the democracy,
              freedoms, and human rights enjoyed by the Hong Kong people will be
              more extensive" than under British rule. He also denied any Chinese
              involvement in U.S. political election campaigns.

04/30/97 --   China's Foreign Minister, Qian Qichen, met with President Clinton in
              Washington, discussing issues ranging from trade to Hong Kong.

05/97    --   According to an April 13, 1998 report by the New York Times, a
              classified Pentagon report of May 1997 concluded that U.S. national
              security had been harmed by Hughes and Loral Space and
              Communications scientists who, on May 10, 1996, had given sensitive
              rocket guidance and control information to China. (See entries of
              May 10, 1996, and April 13, 1998.)

05/01/97 --   Speaker Newt Gingrich, in a speech at the Paul H. Nitze School of
              Advanced International Studies at Johns Hopkins University in
              Baltimore, said that he supported extending MFN for China for only
              3 to 6 months.

05/29/97 --   President Clinton announced that he would recommend an extension
              of China's MFN status for another year.

06/03/97 --   The Senate Foreign Relations Committee held a hearing on Treaty
              Doc. 105-3, dealing with surrender of fugitive offenders (with Hong
              Kong).

06/11/97 --   The Senate Finance Committee held a hearing on renewing MFN for
              China. Secretary of State Madeleine Albright and USTR Charlene
              Barshefsky testified.

06/17/97 --   In lieu of S. 903, the Senate passed H.R. 1757, the Foreign Relations
              Authorization Act, a bill to consolidate foreign affairs functions and
              authorize foreign relations programs, and that contained a provision
              requiring the President to appoint a Special Envoy for Tibet, with
              ambassadorial rank.
                                     CRS-19

06/18/97 --   U.S. Defense Secretary William Cohen warned China that its sale of
              anti-ship cruise missiles to Iran could backfire by starting a new Gulf
              conflict that could halt oil shipments to Beijing and the United States.

06/18/97 --   On a vote of 34-5, the House Ways and Means Committee rejected a
              resolution disapproving the President's request for extending MFN to
              China for another year.

06/24/97 --   By a vote of 173-259, the House defeated S.J.Res. 79, a resolution
              that would have disapproved the President's recommendation to
              extend MFN to China for another year.

06/25/97 --   Secretary of State Madeleine Albright left for a visit to Vietnam,
              Cambodia, and Hong Kong (for the reversion on July 1.)

06/26/97 --   The 1997 Pacific Rim Forum meeting was held in Hong Kong.

07/01/97 --   Hong Kong reverted to Chinese sovereignty.

07/16/97 --   International press sources reported the launching of a new campaign
              of repression against Muslim separatists in Xinjiang province. The
              campaign will focus heavily on propaganda and education, but use of
              force has been noted by Chinese officials as a very effective means of
              maintaining social order in the region.

07/22/97 --   The State Department released a report entitled, "United States
              Policies in Support of Religious Freedom: Focus on Christians." The
              report criticizes Chinese government efforts to restrict the Protestant
              and Catholic unregistered house-church movements, despite Chinese
              Constitutional guarantees of freedom of religious belief.

07/24/97 --   The Chinese government denounced the State Department's report on
              religious freedom as ignorant about religion in China.

07/28/97 --   The People's Republic of China appointed two diplomats to key
              organizations in Hong Kong. Jiang Enzhu, former ambassador to
              Britain, will head the Xinhua News Agency and over-see a
              downgrading of its functions. Ma Yuzhen was appointed head of the
              Hong Kong Branch of the Chinese Foreign Ministry, a new
              organization created on July 1, 1997.

07/29/97 --   Secretary of State Madeleine Albright announced that the United
              States will appoint a "Special Coordinator" for Tibetan issues within
              the State Department. The State Department expected to make an
              appointment by November 1997.

07/30/97 --   The State Department announced that it expects to issue a transit visa
              to Taiwan's President, Li Teng-hui, in September, allowing him to
              pass through Hawaii.
                                      CRS-20

08/06/97 --   Officials of Chinese Religious Organizations strongly criticized the
              State Department's report on religious freedom as distorted and
              blasphemous.

08/07/97 --   Senator Strom Thurmond (R-SC) arrived in China at the invitation of
              Qiao Shi to engage in four days of talks with Chinese officials,
              including Defense Minister Chi Haotian and President Jiang Zemin.

08/10/97 --   National security advisor Samuel R. Berger met with Chinese
              President Jiang Zemin to discuss preparations for an October summit
              at the White House. Assistant Secretary of State for East Asian and
              Pacific Affairs, Stanley Roth, and National Security Council senior
              director for Asian affairs, Sandra Kristoff, accompanied Berger on this
              visit which was scheduled to last through August 13.

08/14/97 --   Taiwan announced that it re-established diplomatic ties with Chad.

08/14/97 --   In a news article Chinese leaders recently expressed alarm over
              Congressional anti-Chinese sentiment to a top aide to President
              Clinton. That sentiment has been expressed in a number of bills being
              considered by Congress to sanction China for human rights abuses,
              weapons proliferation, and threatening Taiwan.

08/17/97 --   National Security Advisor, Samuel R. Berger, held talks in Beijing
              with President Jiang Zemin on ways of ensuring a successful US-
              China Summit in October 1997. One of the U.S. proposals was in the
              area of human rights, suggesting that China release political prisoners
              Wang Dan and Wei Jingsheng for health reasons.

08/19/97 --   China sentenced Chen Xiatong, the son of former Beijing Mayor,
              Chen Xitong, to 12 years in prison on charges of bribery and diverting
              public funds. This was the most serious corruption scandal to be
              exposed by the government since the Communist Party took control
              in 1949.

08/20/97 --   Representative Frank Wolf announced that he made a secret trip to
              Tibet on August 9 -13 where he heard stories of repression, torture,
              and a systematic effort by the Chinese to suppress Buddhism in Tibet.
              He urged President Clinton to press China on Tibet issues and
              described Chinese policy there as, "boot-heel subjugation."

08/21/97 --   Taiwan's Prime Minister, Lien Chan, resigned his post, making way
              for Vincent Siew to assume the office. Mr. Lien retained the post of
              Vice President.

08/24/97 --   China's New China News Agency accused Rep. Frank Wolf of
              deliberately trying to "stir up trouble" and lying about conditions in
              Tibet. In one article, the leader of Tibet's legislature, Raidi, defended
              Chinese policies and insisted that monks, nuns, and Tibetans can
              worship freely.
                                     CRS-21

09/04/97 --   During the visit of Japan's Prime Minister, Ryutaro Hashimoto, to
              China, the two countries agreed to exchange visits of heads of
              government annually.

09/07/97 --   Lee Teng-hui, President of Taiwan, attended the opening ceremonies
              of the "Universal Congress on the Panama Canal" despite opposition
              from China. China's use of trade and economic pressure succeeded
              in persuading many heads of state and industry leaders not to attend,
              downgrading the international image of the event. The American
              delegation was led by Rodney Slater, Secretary of Transportation, and
              Thomas F. McLarty, President Clinton's special envoy for Latin
              American and Caribbean Affairs.

09/08/97 --   Secretary of Commerce William Daley left for China to attend the
              U.S.-China Joint Commission on Commerce and Trade (JCCT)
              September 8-9, and the China America Telecommunications Summit
              (CATS), September 10-11.

09/08/97 --   Tung Chee-hwa (C.H.), Hong Kong's Chief Executive, arrived in
              Washington, D.C. for meetings with political leaders and
              policymakers. During Mr. Tung's visit, he met with Administration
              officials and Members of Congress to assure U.S. officials that Hong
              Kong's political system would not be changed.

09/09/97 --   In a hearing before the House Subcommittee on Asia and the Pacific,
              Assistant Secretary of State on Human Rights, John Shattuck,
              announced the Clinton Administration's opposition to H.R. 2431, the
              Freedom from Religious Persecution Act of 1997. The bill would
              impose sanctions on Chinese officials and entities involved of
              persecuting people on the basis of religion.

09/11/97 --   China agreed to return a powerful supercomputer to the United States
              that it had illegally transferred to a military institute.

09/12/97 --   The 15th National Party Congress commenced in Beijing. Key
              decisions made by China's party elite were ratified by the National
              People's Congress. Jiang Zemin's economic plan to continue
              economic reform by privatizing the State owned sector was approved.
              Zhu Rongji was named Premier, and Wu Yi was promoted to the
              position of Foreign Minister. Jia Qinglin was named mayor of Beijing.
              Jiang appointed Zhang Wannian and Chi Haotian to the highest
              military posts.

09/15/97 --   A letter, signed with the name of former head of the Communist
              Party, Zhao Ziyang, circulated in Beijing during the 15th Party
              Congress. The letter challenged the official position of the Party on
              the Tiananmen Square crackdown of June 4, 1989 -- which is that the
              killing of hundreds of demonstrators was justified to quell a counter-
              revolutionary rebellion.
                                     CRS-22

09/23/97 --   The IMF and World Bank Group Joint Annual Meeting began in
              Hong Kong.

09/24/97 --   The Senate agreed to a resolution, S.Res. 125, commending Dr. Jason
              C. Hu, the Representative of the Taipei Economic and Cultural
              Representative Office, on his appointment as Minister of Foreign
              Affairs of the Republic of China.

09/24/97 --   China warned the United States and Japan not to include Taiwan
              under the security umbrella of the new U.S.-Japan Mutual Defense
              Treaty.

09/25/97--    Treasury Secretary Robert Rubin met with Chinese President Jiang
              Zemin and Economic Advisor, Zhu Rongji in Beijing to discuss the
              upcoming state visit of Jiang and China's economic policies.

09/28/97 --   Hong Kong's Provisional Legislature approved plans for the 1998
              legislative election. The plan designates 20 seats to be elected under
              a system of proportional representation, 30 seats to be elected by
              functional constituencies, and a final 10 seats to be elected by an 800-
              member electoral committee. The plan has been criticized as an effort
              to weaken political parties in favor of pro-Beijing groups.

09/28/97 --   China announced that it had successfully tested a new type of long-
              range ground-to-air missile capable of evading radar detection.

10/03/97 --   USIA Director Joseph Duffey left for a visit to New Delhi, Beijing,
              and Moscow.

10/07/97 --   The Australia Group Annual Meeting (Chemical/Biological Weapons
              Nonproliferation Regime) began in Paris.

10/08/97 --   Hong Kong Chief Executive C.H. Tung delivered a state of the SAR
              speech to mark the first 100 days of rule by China. While his speech
              focused on the economic and social development of Hong Kong, he
              announced that elections for the legislature will be held on May 24,
              1998.

10/27/97 --   China signed the U.N. International Covenant on Economic, Social,
              and Cultural Rights, and indicated that it would put the signed
              agreement before the National People's Congress for study and
              action.

10/28/97 --   U.S.-China Summit. President Jiang Zemin became the first Chinese
              leader to visit the United States since 1985. Issues discussed at the
              summit included weapons proliferation, Asia-Pacific security, the
              trade imbalance, legal and political reforms, human rights, and
              peaceful nuclear cooperation. President Clinton announced after the
              summit that he was prepared to initiate nuclear energy cooperation
              with China under the 1985 U.S.-China Nuclear Cooperation Act.
                                     CRS-23

10/31/97 --   A State Department press statement reported that the Secretary of
              State had designated Gregory B. Craig as Special Coordinator for
              Tibetan issues within the State Department -- an added responsibility
              to his ongoing role as Director of Policy Planning.

11/15/97 --   A new Sino-American Energy and Environment Technology Center
              was established at China's Qinghua University in Beijing.

11/16/97 --   Wei Jingsheng, China's most famous dissident, was released from a
              Chinese prison on medical parole and sent to the United States for
              medical treatment. He was serving a 14-year term when he was
              released.

11/28/97 --   At Beijing's Qinghua University, ground was broken to establish an
              American-style law school.

12/11/97 --   China's State Council approved a 25-article administrative regulation
              restricting "harmful information" from appearing on the Internet.
              Among other things, the new rules ban anything that "defames
              government agencies," " impedes public order," or "damages state
              interests." Under the rules, both distributors and consumers can be
              held liable. According to a Washington Post report (12/31/97), about
              620,000 Chinese are online.

12/20/97 --   U.S. Secretary of Defense William Cohen, speaking during his trip to
              Beijing, said that President Jiang Zemin had assured him that China
              would not transfer additional anti-ship cruise missiles to Iran.

12/23/97 --   According to Human Rights Watch/Asia, a Ministry of Public Security
              circular was issued ordering all localities to tighten controls on
              religious information and personnel from abroad prior to the
              Christmas religious holiday.

12/29/97 --   Hong Kong began slaughtering its 1.3 million chickens in an effort to
              prevent an avian flu pandemic traced to chickens in the territory. The
              Director of Hong Kong's agriculture and fisheries department said "it
              is probable" that chickens from China are the source of the outbreak
              of the "A H5N1" flu type. Chinese authorities claimed that chickens
              in China are healthy, and that none have tested positive for the virus.

12/29/97 --   According to Xinjiang Legal Daily, 16 people were executed in
              Urumqi, Xinjiang for what Chinese officials claimed were charges of
              murder, robbery, independence-related activities, and promoting
              "ethnic hatred." It was unknown how many, if any, were ethnic
              Uighurs.

12/30/97 --   China's new, more restrictive Internet regulations went into effect.
                                     CRS-24

                                      1998
01/12/98 --   Pursuant to section (b)(1) of P.L. 99-183 and section 902(a)(6)(B)(i)
              of P.L. 101-246, President Clinton certified that China had provided
              "clear and unequivocal assurances" that it was not assisting any
              nonnuclear weapons state to develop nuclear weapons. The
              certification paved the way for Sino-U.S. nuclear energy cooperation
              to begin. Congress has 30 consecutive legislative days to consider the
              agreement before cooperation can begin.

01/21/98 --   In an editorial, the official China Daily accused the United States of
              using Radio Free Asia to "contain Asian countries' development and
              disrupt their stability."

01/22/98 --   Xinjiang Daily reported the execution of 11 separatists, including
              Abduselim Kahar, for subversion and threatening national security.

01/25/98 --   According to Human Rights Watch/Asia, Chinese security officials
              released Father Wang Zhongfa, a priest in an "unofficial" church, who
              had been arrested several months earlier.

01/30/98 --   In Presidential Determination 98-13, President Clinton reconfirmed
              satisfactory Chinese reciprocation of U.S. tariff and nontariff barrier
              reductions, thereby extending the U.S.-China trade agreement another
              two years.

02/04/98 --   The House International Relations Committee held a hearing on the
              President's certification to initiate nuclear energy cooperation with
              China.

02/05/98 --   A Chinese spokesman said that no press would be allowed to
              accompany a U.S. delegation of religious leaders set to arrive in
              China the second week of February and scheduled to several cities in
              China and Tibet.

02/08/98 --   Don Argue, President of the National Association of Evangelicals;
              Theodore E. McCarrick, Archbishop of the Roman Catholic Diocese
              of Newark, New Jersey; and Rabbi Arthur Schneier left for China to
              study for themselves the religious situation there. The three left China
              on February 26, and have said they will issue a report about their
              observations in March. The three religious representatives were
              invited to China as a result of discussions at the October 1997 U.S.-
              China summit.

02/12/98 --   The International Committee of the Red Cross (ICRC) said that no
              agreement had been reached with the Chinese government on ICRC
              access to Chinese prisons. Negotiations have been ongoing since
              1994.
                                     CRS-25

03/04/98 --   The House Governmental Reform and Oversight Committee held
              hearings on the activities of China and other countries to influence
              U.S. policies and elections. Among those who testified were Janet
              Reno, Attorney General and Louis J. Freeh, Director, FBI; George J.
              Tenet, Director, CIA; and Lt. General Kenneth A. Minihan, Director,
              National Security Agency, Department of Defense.

03/05/98 --   The House International Relations Committee's Asia/Pacific
              Subcommittee held a markup on H.Res. 364, urging a resolution
              condemning China's human rights practices be introduced and passed
              in Geneva at the 54th Session of the U.N. Commission on Human
              Rights in Geneva, scheduled for March 16 - April 24, 1998.

03/12/98 --   A Washington Post article reported that President Clinton would
              make a state visit to China in June 1998 rather than waiting, as had
              been anticipated, until late November when an Asia Pacific Economic
              Cooperation (APEC) forum meeting was scheduled.

03/12/98 --   The Senate passed S. Res. 187, a resolution urging the United States
              to introduce a resolution condemning China for its human rights
              record before the U.N. Commission on Human Rights. The measure
              passed by a vote of 95-5.

03/12/98 --   The Senate Foreign Relations Committee held a closed door session
              on U.S. nuclear cooperation with China at which Bob Einhorn
              testified.

03/12/98 --   China's Foreign Minister, Qian Qichen, announced at a press
              conference in Beijing that China would sign the International
              Covenant on Civil and Political Rights, one of two key U.N. human
              rights treaties. China signed the second key treaty, the U.N. Covenant
              on Economic, Social, and Cultural Rights, on October 27, 1997, the
              day prior to the U.S.-China summit in Washington.

03/13/98 --   According to U.S. news reports, the Clinton Administration had
              discovered that China was planning to secretly sell massive quantities
              of uranium-enrichment material to Iran in violation of its pledge made
              at the October 1997 U.S.-China summit.

03/16/98 --   The 54th U.N. Human Rights Commission meeting began in Geneva,
              Switzerland, scheduled to last until April 24.

03/16/98 --   It was announced that Loral Space and Communications and China
              had signed an agreement for China to launch five Loral satellites
              between now and March 2002.

04/13/98 --   According to a New York Times front-page article, a classified May
              1997 report by the U.S. Department of Defense had concluded that
              scientists from Hughes and Loral Space and Communications had
                                     CRS-26

              turned over scientific expertise to China that had significantly
              improved the reliability of China's nuclear missiles.

04/14/98 --   Ending a three-year freeze on relations, Chinese and Taiwanese
              negotiators agreed to resume low-level talks beginning April 21-22.
              China suspended talks with Taiwan in June 1995, in retaliation for
              Taiwan President Lee Teng-hui's visit to the United States.

04/17/98 --   According to The Washington Post, Chinese authorities detained two
              Catholic priests -- The Rev. Shi Wende, on March 14, and the Rev.
              Lu Genyou, on April 5 -- because of their association with
              "underground churches" in Hebei Province.

04/30/98 --   Secretary of State Albright began a visit to Beijing.

05/11/98 --   India tested 3 nuclear devices.

06/03/98 --   President Clinton announced he was recommending an extension of
              China's MFN status for one more year. (H.Doc. No. 105-262)

06/03/98 --   The Speaker's Task Force on Hong Kong, chaired by Representative
              Bereuter, issued its third quarterly report on the situation in Hong
              Kong. (Printed in the Congressional Record, p. E987.)

06/04/98 --   Representative Solomon introduced H.J.Res. 121, a joint resolution
              to disapprove extending China's MFN status.

06/04/98 --   The House International Relations Committee and House Government
              Reform Committee held a joint hearing on allegations that it is
              Chinese policy to sell for transplant human organs harvested from
              executed prisoners.

06/18/98 --   By a vote of 409-10, the House passed H. Res. 463, establishing a
              Select Committee on U.S. National Security and Military/Commercial
              Concerns with the People's Republic of China. The purpose of the
              Select Committee is to investigate allegations of technology transfers
              to China.

06/22/98 --   Speaker Gingrich appointed the following 9 Members to serve on the
              Select Committee on U.S. National Security and Military/Commercial
              Concerns with the People's Republic of China: Cox, Goss, Bereuter,
              Hansen, Weldon, Dicks, Spratt, Roybal-Allard, and Scott.

06/24/98 --   President Clinton began a nine-day summit visit to China, stopping
              first in Xian, then going to Beijing, Shanghai, Guilin, and finally Hong
              Kong. During a roundtable discussion in Shanghai, the President
              discussed U.S. policy toward Taiwan -- a discussion which later
              became controversial after American newspapers reported the
              President had reaffirmed the "three noes" of not supporting
              independence for Taiwan, not supporting one China-one Taiwan, and
                                    CRS-27

              not supporting Taiwan's membership in international organizations
              comprised of nation-states, such as the U.N.

06/25/98 --   In China, a group of activists announced the formation of the China
              Democracy Party, an effort to challenge the monopoly of the Chinese
              Communist Party.

06/30/98 --   President Clinton remarked in Shanghai that the United States did not
              support Taiwan independence, nor pursue a two-China policy, nor
              believe Taiwan should be a member of international organizations that
              require statehood. The remark engendered charges in the United
              States that the Administration had made subtle changes in traditional
              U.S. policy on the subject.


07/10/98 --   The Senate considered and passed two resolutions relating to Taiwan:
              S.Con.Res. 30, relating to Taiwan's membership in international
              financial institutions, and S. Con. Res. 107, reaffirming U.S.
              commitments with respect to Taiwan.

07/14/98 --   Senator Lott provided an update on the work of four Senate
              committees investigating the allegations of satellite technology
              transfers to China. (Congressional Record, p. S8088)

07/22/98 --   By a vote of 166-264, the House rejected H.J.Res. 121, a resolution
              that would have disapproved the President's recommendation for
              extending most-favored-nation status to China for another year.

07/22/98 --   Legislation was enacted to replace the term "most-favored-nation" in
              certain U.S. statutes by the less misleading term of "normal trade
              relations." (Enacted in Section 5003 of the Internal Revenue Service
              Restructuring and Reform Act of 1998, P.L. 105-206.)

08/04/98 --   Representative Bereuter submitted the fourth quarterly report of the
              Speaker's Task Force on Hong Kong (Congressional Record, p.
              E1544).

09/01/98 --   The Chinese government banned logging along the Yangtze River,
              concerned that extensive logging had contributed to devastating
              floods on the Yangtze earlier in the year.

09/02/99 --   According to the Asian Wall Street Journal, the U.S. Coca-Cola
              company, which currently has 21 joint-venture bottling plants in
              China, will soon complete a 10-plant expansion.

09/14/98 --   According to the Asian Wall Street Journal, U.S. officials announced
              a ban on untreated wooden packing material from China, saying the
              wood was infested with the Asian long-horned beetle. U.S. officials
              estimated that the ban would affect as much as 40% of China's
              exports.
                                    CRS-28

09/16/98 --   According to the New York Times, Secretary of Defense William S.
              Cohen received Chinese pledges that China will move ahead with
              modest joint military exercises and exchanges with the United States
              in 1999.

09/24/98 --   According to the Asian Wall Street Journal, Legend Holdings Ltd.
              and International Business Machines Corp. (IBM) reached agreement
              to jointly develop and distribute software in China.

09/24/98 --   According to top U.S. trade official U.S. Undersecretary of
              Commerce David Aaron, "The lack of progress on bilateral
              market-access issues and the slowdown in WTO-accession talks are
              cause for serious concern."

09/30/98 --   The New York Times reported that a group of intellectuals in China
              was circulating two manifestoes declaring how individual rights were
              repressed in China, and rejecting government's contention that human
              rights are a relative rather than universal concept.

10/09/98 --   The Senate passed the Freedom from Religious Persecution Act by
              vote of 98-0. The absence of religious freedom in China had been an
              important behind the legislation. The bill became P.L. 105-292.

10/15/98 --   After having suspended high-level talks since 1995, Taiwan and
              Chinese negotiators met in Shanghai to resume discussions.

10/18/98 --   President Jiang Zemin and Taiwan's senior envoy to the mainland,
              Koo Chen-fu, met in Beijing for the highest-level talks between
              Taiwan and China since 1949.

10/19/98 --   The Asian Wall Street Journal reported that a noted economist,
              Angus Maddison, had determined that China's total economic
              production may be on a part with that of the U.S. by 2015.

10/20/98 --   The second U.S.-China defense consultations ended between General
              Zhang Wannian, vice-chairman of China's Central Military
              Commission (CMC), Chinese Defense Minister General Chi Haotian,
              and U.S. under secretary of defense Walter Slocombe.

10/26/98 --   The Asian Wall Street Journal reported that delegates from the U.S.,
              China, and North and South Korea agreed on procedural details for
              discussions on ways to reduce tensions along the DMZ.

11/01/98 --   According to the New York Times, China had eased restrictions in
              family planning system, in an effort to achieve population control
              through patient education, contraceptive choice, and heavy taxes for
              couples who choose to have an additional child.

11/23/98 --   Chinese President Jiang Zemin left for Russia and Japan.
                                     CRS-29

11/27/98 --   According to the New York Times, China's President Jiang Zemin
              wanted Japanese Prime Minister Obuchi to offer a clear-cut written
              apology for World War II behavior by Japan, and a statement about
              relations with Taiwan similar to that made by President Clinton during
              his visit to China in June 1998. Japan rebuffed Mr. Jiang on both
              counts, instead offering instead an oral apology for the war.

12/17/98 --   Beginning today, all shipments to the United States from China
              containing solid-wood packing materials must be accompanied by
              official certification that the wood has been chemically treated to kill
              the Asian long-horned beetle.

12/31/98 --   China reported an economic growth rate of 7.8% in 1998.


                                      1999
01/11/99 --   The United States and China resumed official talks on human rights
              issues with the visit of a Chinese delegation to Washington. The talks
              had been suspended since 1995.

02/11/99 --   According to press reports, China had built up its short range ballistic
              missiles opposite Taiwan, and was continuing military-backed
              construction on disputed islets in the South China Sea.

02/23/99 --   The U.S. government announced it was rejecting a $600 million
              Hughes satellite sale to China because of concerns about technology
              transfer issues.

02/25/99 --   The Pentagon released a report, mandated by Congress, detailing the
              military balance in the Taiwan Strait between China and Taiwan.

02/25/99 --   China vetoed a U.N. resolution that would have extended the U.N.
              peacekeeping mission in Macedonia, reportedly retaliating for
              Macedonia's establishment of diplomatic relations with Taiwan.

02/28/99 --   Secretary of State Albright made an official visit to China.

03/26/99 --   Press reports citing official Chinese statistics stated that 215,000
              labor-related protests had occurred in China in 1998, involving 3.6
              million workers.

04/08/99 --   China's Premier, Zhu Rongji, made his first official visit to the United
              States as Premier, meeting with President Clinton at the White House.

04/21/99 --   Amnesty International criticized Beijing's "gross violations" of human
              rights in Xinjiang.
                                     CRS-30

04/23/99 --   At the U.N. Human Rights Commission meeting in Geneva, China
              blocked a U.S.-sponsored resolution critical of China's human rights
              practices.

04/25/99 --   Over ten thousand Chinese devotees of "Falun Gong" ended their
              demonstration in Beijing to protest restrictions on their right to
              practice the meditation. Falun Gong is a meditation taught by a
              martial arts master living in the United States.

04/21/99 --   The CIA reported to Congress that China had obtained significant,
              classified nuclear weapons information from U.S. nuclear science labs
              as a result of espionage.

05/07/99 --   NATO bombs hit the Chinese Embassy in Belgrade, Yugoslavia,
              killing several Chinese nationals and wounding 20 others. U.S. and
              NATO spokespersons termed the bombing a tragic accident, saying
              that the Embassy had mistakenly targeted because an out-of-date map
              had been used to program bombing targets. The incident sparked
              massive and violent Chinese protests against U.S. and NATO
              embassies and other facilities in Beijing and elsewhere in China.

05/10/99 --   China suspended all senior level military visits with the United States
              indefinitely, and suspended all military interactions scheduled for May
              1999. China also halted cooperation with the United States on human
              rights and non-proliferation issues.

05/21/99 --   China announced that all port visits by U.S. Navy ships to Hong Kong
              would be suspended until further notice.

05/27/99 --   The Senate Foreign Relations Committee held hearings about the
              accidental NATO bombing of the Chinese Embassy in Belgrade.
              Witnesses included Assistant Secretary of Defense Franklin Kramer,
              and Assistant Secretary of State Stanley Roth.

06/03/99 --   President Clinton recommended renewing China's normal trade
              relations (NTR -- formerly known as MFN, or most-favored-nation
              status) for another year.

06/04/99 --   The 10th anniversary of the Tiananmen Square crackdown.

06/07/99 --   Rep. Rohrabacher introduced H.J.Res. 57, a bill to disapprove normal
              trade relations (NTR) to China.

06/11/99 --   According to the Washington Post, NATO's involvement in Kosovo
              has caused Chinese military analysts to begin rethinking their security
              doctrine.

06/14/99 --   A U.S. delegation headed by Undersecretary of State Thomas
              Pickering departed for China to explain how NATO bombers
              accidentally bombed China's Embassy in Belgrade.
                                     CRS-31

06/17/99 --   The Chinese government issued a statement rejecting the U.S.
              explanation for the accidental NATO bombing of the Chinese
              Embassy in Belgrade.

06/23/99 --   The U.S. Consul-General to Hong Kong, Richard Boucher,
              announced that China had banned at least one U.S. military aircraft
              from landing at Hong Kong's Chek Lap Kok airport. The aircraft in
              question was said to be a U.S. navy P-3 Orion on a navigation training
              flight. In May 1999, China had suspended port visits to Hong Kong
              by U.S. Navy ships, a ban still in effect in late June 1999.

07/01/99 --   The House Ways and Means Committee unfavorably reported
              H.J.Res. 57, disapproving normal trade relations (NTR) for China.

07/10/99 --   Taiwan's Lee Teng-hui said that Taiwan-China talks should be
              conducted on a "special state-to-state" basis.

07/22/99 --   China outlawed Falun Gong, a spiritual sect in China whose leader, Li
              Hongzhi, has lived in New York since he left China in 1998.

07/27/99 --   The House defeated H.J.Res. 57, a measure to disapprove President
              Clinton's recommendation to extend normal trade relations to China
              for another year.

11/06/99 --   U.S. and Chinese trade negotiators announced they had reached
              agreement on terms for China's WTO accession.

12/16/99 --   The United States and China reached agreement on compensation for
              damages arising out of the accidental NATO bombing of the Chinese
              Embassy in Belgrade on May 7, 1999.


                                     2000
02/01/00 --   The House passed H.R. 1838, the Taiwan Security Enhancement Act,
              by a vote of 341-70.

02/21/00 --   On February 21, 2000, the PRC government issued a White Paper,
              "The One-China Principle and the Taiwan Issue," with a mix of
              conciliatory gestures and a new threat to use force if Taiwan
              authorities delay cross-Strait talks.

03/08/00 --   The Administration made public an unclassified version of an annual
              report mandated by P.L. 105-107, on Chinese espionage against the
              United States.

04/14/00 --   The Washington Post reported that Taiwan is seeking to purchase 4
              U.S. Aegis destroyers, giving it enhanced air defense capability.
                                     CRS-32

05/17/00 --   The House Ways and Means Committee reported H.R. 4444, a bill
              granting China permanant normal trade relations (PNTR), by a vote
              of 34-4; the Senate Finance Committee also reported its version of the
              bill, S. 2277.

05/24/00 --   By a vote of 237-197, the full House passed HR. 4444, a bill granting
              China PNTR and establishing a range of monitoring and reporting
              requirements.

06/02/00 --   President Clinton recommended extension of China's normal trade
              status for another year.

06/23/00 --   Representative Dana Rohrabacher introduced H.J.Res. 103, a bill to
              disapprove the annual extension of China's normal trade status.

07/10/00 --   Secretary of Defense William Cohen left for four days in China to hold
              talks on proliferation, missile defense, and Taiwan issues.

07/12/00 --   The Washington Times reported that Russia had completed work on
              a second Sovremenny-class advanced warship purchased by Beijing,
              and that sea trials began late in June 2000. According to the article,
              the exercises were to include at least one test launch of an SS-N-22
              Sunburn anti-ship cruise missile.

07/18/00 --   By a vote of 147-281, the House rejected H.J.Res. 103, a joint
              resolution of disapproval for renewing China's NTR status for another
              year.

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