This CRS Report, updated as warranted, discusses the security problem of China's role in weapons proliferation and issues related to the U.S. policy response since the mid- 1990s. China has taken some steps to mollify U.S. and other foreign concerns about its role in weapons proliferation. Nonetheless, supplies from China have aggravated trends that result in ambiguous technical aid, more indigenous capabilities, longer-range missiles, and secondary (retransferred) proliferation. According to unclassified intelligence reports submitted as required to Congress, China has been a "key supplier" of technology, particularly PRC entities providing nuclear and missile-related technology to Pakistan and missile-related technology to Iran.

This CRS report discusses policy issues regarding military-to-mliitary contacts with the People's Republic of China (PRC) and provides a record of contacts since 1993. The United States suspended military contacts with China and imposed sanctions on arms sales in response to the Tiananmen Crackdown in 1989. In 1993, the Clinton Administration began to re-engage the PRC leadership up to the highest level and including China's military, the People's Liberation Army (PLA). Renewed military exchanges with the PLA have not regained the closeness reached in the 1980s, when U.S.-PRC strategic cooperation against the Soviet Union included U.S. arms sales to China. Issues for Congress include whether the current Administration under President Bush has complied with legislation overseeing dealings with the PLA and has determined a program of contacts with the PLA that advances a prioritized list of U.S. security interests.

This report discusses the U.S.-China economic relationship and China's rapid expansion as a global economic market, both with respect to the current global economic crisis. It also examines major U.S.-China trade issues and related legislation.