For Immediate Release
Office of the Press Secretary
November 9, 2001
Presidential Memo Regarding Trade and China
November 9, 2001
MEMORANDUM FOR THE UNITED STATES TRADE REPRESENTATIVE
SUBJECT: Determinations
under Section 1106(a) of the Omnibus
Trade and Competitiveness Act of 1988 -- People's Republic
of China
Pursuant to section 1106(a) of the Omnibus Trade and
Competitiveness Act of 1988, (19 U.S.C. 2905(a)), I determine that
state trading enterprises account for a significant share of the
exports of the People's Republic of China (China) and goods that
compete with imports into China. I further determine that
such state trading enterprises unduly burden and restrict, or adversely
affect, the foreign trade of the United States or the United States
economy, or are likely to result in such a burden, restriction, or
effect.
China is seeking to become a member of the World Trade Organization
(WTO). The terms and conditions for China's accession to the WTO
include China's commitments that it will ensure that all state-owned
and state-invested enterprises will make purchases and sales based
solely on commercial considera-tions, such as price, quality,
marketability, and availability, and that U.S. business firms will have
an adequate opportunity to compete for sales to and purchases from
these enterprises on nondiscriminatory terms and
conditions. In addition, the Government of China will not
influence, directly or indirectly, commercial decisions on the part of
state-owned or state-invested enterprises, including on the quantity,
value, or country of origin of any goods purchased or sold, except in a
manner consistent with the Marrakesh Agreement Establishing the World
Trade Organization (WTO Agreement). China has also confirmed
that state trading enterprises will make purchases that are not for
government use. The obligations that China will assume under
the WTO Agreement, including China's protocol of accession, meet the
requirements of section 1106(b)(2)(A), (19 U.S.C. 2905(b)(2)(A)), and
thus my determinations under section 1106(a) do not require invocation
of the nonapplication provisions of the WTO Agreement.
You are directed to publish this memorandum in the Federal
Register.
GEORGE W. BUSH
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