This report discusses policy developments from 2001 through 2002 related to China-U.S. Relations in the 107th Congress. It also points out the Key Events in Bilateral Relations and Human Rights in U.S.-China Relations.

Congress has long been concerned about whether U.S. policy advances the national interest in reducing the role of the People's Republic of China (PRC) in the proliferation of weapons of mass destruction (WMD) and missiles that could deliver them. China has taken some steps to mollify U.S. concerns about its role in weapons proliferation. Skeptics question whether China's cooperation in weapons nonproliferation has warranted President Bush's pursuit of stronger bilateral ties. This report discusses the national security problem of China's role in weapons proliferation and issues related to the U.S. policy response, including legislation, since the mid-1990s.

This report provides a quantitative framework for policy considerations dealing with U.S. trade with China. It provides basic data and analysis of China’s international trade with the United States and other countries. Since Chinese data differ considerably from those of its trading partners (because of how entrepot trade through Hong Kong is counted), data from both PRC sources and those of its trading partners are presented. Charts showing import trends by sector for the United States highlight China’s growing market shares in many industries and also show import shares for Japan, Canada, Mexico, the European Union, and the Association for Southeast Asian Nations (ASEAN ).

This report discusses the “Falun Gong” movement, which led to the largest and most protracted public demonstrations in China since the democracy movement of 1989. The People’s Republic of China (PRC) government, fearful of a political challenge and the spread of social unrest, outlawed Falun Gong in July 1999. Despite a massive government campaign against them and harsh punishments meted out to many followers, Falun Gong members continued to stage demonstrations for over two years.