The United States has pressed China over the past several years to improve its enforcement of U.S. intellectual property rights (IPR) in China and to provide greater market access to intellectual property-related products, such as computer software, CDs, and audio-visual products. Trade tensions over these issues nearly led the United States to impose trade sanctions against China in 1992 and 1995. In March 1995, the United States and China signed a new and detailed IPR trade agreement, which pledges China to substantially reform its IPR enforcement regime and improve market access. This report examines the U.S.-Chinese IPR dispute and analyzes the implications of the new IPR agreement on future U.S.-Chinese trade relations

Lending to China from the multilateral development banks (MDBs) increased four-fold between 1985 and 1994, from $1.1 billion to $4.3 billion. China is now the MDBs' largest single borrower country. There is considerable debate today, however, whether the MDBs should continue lending to China. In particular, there is sharp debate whether the World Bank should continue making concessional loans to China.

The People's Republic of China (PRC)'s provocative use of military force in the Taiwan Strait has appeared to subside, but not before convincing many in the Congress that the PRC regime continues to flout international norms sensitive to the United States. In addition to challenging stability in the Taiwan Strait, the PRC is seen recently to undermine important U.S. interests regarding nuclear proliferation, intellectual property rights, and missile proliferation. As a result, many in the Congress are pressing for actions -- including economic and other sanctions

Deng Xiaoping's death will create a vacuum at the center of political power in China. Successor leaders will decide whether to continue the recent collective leadership decision-making processes and policy emphasis on political stability and economic reform; or to press for political power in a search for personal or policy advantage. A struggle for political power in Beijing would complicate an already difficult set of problems of governance caused by rapid economic growth, social change, realignment of central and local power arrangements and other factors. Nevertheless, there are important reasons why China may effectively work its way through the leadership transition.