How to Comply With U.S.-China Trade Agreements

China is one of the largest trading partners of the United States. Since opening itself up to the world in the 1970s, China has been steadily reaching out and exploring opportunities in foreign markets. Its exports have increased dramatically over the past three decades. The sheer volume of products bearing the "made in China" label found in the United States today attests to this. The trading policy between the United States and China is constantly changing, based on new developments in diplomatic relations between the two countries. Learn how your business can continue to comply with U.S.-China trade agreements.

Instructions

Difficulty: Moderate

Comply With U.S.-China Trade Agreements

1. Be aware that China is not as open to imports as the United States. As a result, the United States accepts far more imports from China than it exports there.
2. Know that U.S.-China trade agreements are continually being reviewed and are often on shaky ground. This is because of China's poor history with regards to human rights. Because China often does not live up to human rights expectations in its labor practices (and overall national policies), the United States has been reluctant to engage in full, unlimited trade with China.
3. Put the World Trade Organization to use for you. China is a member of the World Trade Organization. Therefore, if you do business with China and have a dispute, you can turn to the World Trade Organization to help resolve it.
4. Know that non-agricultural products from China enjoy virtually unlimited import possibilities in the United States. The United States has eliminated most import barriers with China not only because U.S. consumers enjoy the inexpensive nature of Chinese products, but because employment in manufacturing such products has helped improve the quality of life for many Chinese workers.
5. Know that if your company provides services in telecommunications or construction, you may find the Chinese market closed to you. China does not currently allow foreign companies to participate in these markets inside China.

Tips & Warnings

• The United States is in the process of working with China to encourage its government to ease many of its restrictions on imports.
• China does not recognize or offer protection for foreign intellectual property rights. The United States is working with China to try and persuade government leaders there to comply with international standards regarding the protection of intellectual property rights. In the meantime, however, any company dealing with intellectual property that does business with China should proceed with extreme caution.