U.S.-China economic ties have expanded substantially over the past several years. China is now the third largest U.S. trading partner, its second largest source of imports, and its fourth largest export market. However, U.S.-China commercial ties have been strained by a number of issues, including a surging U.S. trade deficit with China, China's refusal to float its currency, and failure to fully comply with its World Trade Organization (WTO) commitments, especially its failure to provide protection for U.S. intellectual property rights (IPR). This report explores these issues in detail, especially concerning the lack of protection for U.S. IPR.

The President has identified proliferation as a primary danger to U.S. security interests. China has contributed to the danger by providing nuclear weapons technology to Pakistan, and other nuclear technology to Iran and Algeria. China has also supplied CSS-2 intermediate-range ballistic missiles to Saudi Arabia, Silkworm anti-ship missiles to Iran and Iraq, and ballistic missile technology to Pakistan and perhaps Iran, North Korea, and others. China developed the mobile, solid-fuel M-9 and M-11 short-range ballistic missiles reportedly with Pakistan, Syria, and Iran as interested buyers.

This issue brief views reorganization as involving the alteration and relocation of both programs and the administrative structure of the executive branch for reasons of efficiency, economy, and direction. The underlying issue is who reorganizes--Congress or the President--and by what authority and, also, for what purpose? Some other related administrative and management reforms are tracked as well.