This report focuses on the potential implications of China's naval modernization for future required U.S. Navy capabilities. This report is based on unclassified open-source information, such as the annual Department of Defense (DOD) report to Congress on China's military power, and published reference sources such as Jane's Fighting Ships.

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.

Since 1990, Congress has faced an annual, contentious decision on whether, and under what conditions, to renew normal trade relations (NTR) status with China for another year. This annual exercise occurred because under U.S. law, China’s NTR status is temporary, and the President has to recommend its renewal each year by June 3. In 2000, the 106th Congress considered and passed H.R. 4444 (P.L. 106-286), which would eliminate the annual NTR renewal process and grant permanent NTR to China. But this Act only grants permanent NTR to China once it joins the World Trade Organization. Since this has not yet happened, President Bush on June 1, 2001, was compelled to recommend another temporaryextension ofChina’s NTRstatusfor one year in order for it to continue uninterrupted. The NTR renewal is subject to enactment of a joint resolution of disapproval by Congress. Such a joint resolution, H.J.Res. 50, was introduced on June 5, 2001, byRepresentative Dana Rohrabacher. The Ways and Means Trade Subcommittee reported the resolution adversely on July 12, 2001, and the House rejected the resolution on July 18, 2001, by a vote of 259-169.

This report discusses the background information and most recent development in U.S.-China relations since mid-1996. Since the early 1990s, U.S.-China relations have followed an uneven course, with modest improvements overshadowed by various recurring difficulties and setbacks. Longstanding bilateral difficulties have included U.S. problems with the PRC’s worsening human rights record, growing tensions over the PRC’s southern military build-up opposite Taiwan and Taiwan’s political status, and continued controversy over allegations of Chinese proliferation of weapons to unstable regimes.

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.

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.