The growing U.S. trade imbalance with China, and alleged Chinese unfair trade practices, have become of major concern to many U.S. policymakers. Over the past few years, the U.S. trade deficit with China has grown at a faster rate than that of any other major U.S. trading partner. In 1993, the U.S. trade deficit with China totalled $22.8 billion, the second largest U.S. bilateral trade imbalance after Japan. Many trade analysts have attributed the growing U.S.-China trade deficit to a variety of Chinese restrictive trade practices. Other areas of concern to the United States have included China's alleged violation of U.S. intellectual property rights, transshipments of textiles to the United States in violation of U.S. textile quotas, and China's alleged use of forced labor for products exported to the United States.

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.

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.