Concern has grown in Congress and elsewhere about China's military modernization. The topic is an increasing factor in discussions over future required U.S. Navy capabilities. The issue for Congress addressed in this report is: How should China's military modernization be factored into decisions about U.S. Navy programs?

The People's Republic of China (PRC) applied to resume membership in the General Agreement on Tariffs and Trade (GATT) in 1986 and continues to negotiate its accession to GATT's successor, the World Trade Organization (WTO). A country may join the WTO on terms agreed by the applicant and WTO Members if two-thirds of Members approve the country's accession agreement. A Member may "opt out" of WTO relations with another country by invoking Article XIII of the WTO Agreement, its "non-application" clause. The United States and the PRC agreed to bilateral terms for the PRC's accession in November 1999.