The State Council approved the National Tenth Five-Year Plan for Environmental Protection on 26 December 2001, requesting that loca1 governments and the various departments strengthen environmental protection in close relation with the economic restructuring; raise funds for environmental protection through multiple channels in connection with the expansion of domestic demand, and establish the mechanism of environmental protection with the government playing the dominant role with market promotion and public participation. The State Council emphasizes that local governments should undertake the major responsibilities of environmental protection. The governments at various levels should integrate the tasks of the Plan into the target responsibility system for provincial governors, mayors, and county heads. Periodic examination should be carried out on the targets of total pollutant discharge control and environmental quality. The implementation of the Plan should be inspected and reported on every year. The State Council requests that the relevant departments should provide guidance and support in implementing the Plan according to their respective responsibilities. The State Environmental Protection Administration should conduct coordinated supervision, management, and inspection of the implementation of the Plan.

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.

Currently, China’s short-term economic outlook is unclear. Economic slowdowns in Asia and the United States in the beginning of 2001 have hurt China’s export industries, and the September 11, 2001 terrorist attacks against the United States will likely further dampen foreign demand for Chinese products and could reduce the level of planned foreign investment in China. The Chinese government has used public spending in recent years to boost the economy, and it is likely that it will continue to maintain such policies until the global economy begins to recover.

This report provides an overview of the Muslim separatist movement in China’s northwestern Xinjiang Uighur Autonomous Region, China’s attempts to stifle activities which it considers terrorism, and implications for U.S. policy. Some analysts suggest that the U.S.-led campaign against terrorism may make it difficult to pressure the Chinese government on human rights and religious freedoms, particularly as they relate to Uighur Muslims in Xinjiang.