History of Economic Sanctions in United States

Background in the History of U.S. Economic Sanctions Imposed against China

In the early 1990s, nonproliferation became the paramount issue in United States-China relations. In June 1991, the United States accused corporations run by the government of China of exporting M-11 missile technology to Pakistan, and imposed mandatory sanctions. In November 1991, the Chinese Foreign Minister verbally agreed to abide by the Missile Technology Control Regime (MTCR), and in February 1992, he sent the United States a letter reportedly confirming China’s intent to abide by the export constraints of the sanctions were subsequently lifted on March 23, 1992.

Concern remained, however, about the transparency of China’s arms and technology export programs. The list of missiles covered by the MTCR was expanded in January 1993 to include all those capable of delivering weapons of mass destruction, changes China has not explicitly endorsed. On August 24, 1993, the United States again found China to have shipped M-11 missile equipment to Pakistan and again imposed sanctions. Those sanctions were lifted on October 4, 1994, after the Chinese Foreign Minister signed a pledge not to export particular missiles. New intelligence reports surfaced in June 1996 that Pakistan has M-11 nuclear-capable missiles that are operational, due to China’s shipments [6].

Some Observations

Reports of Chinese missile technology cooperation and transfers to Iran emerged in the mid-1980s and did not recede. Other reports have China making transfers prohibited by MTCR guidelines to Iran throughout the 1990s, and indicate that shipments may have included ingredients for chemical weapons and SCUD missile fuel. Still other reports state that China may have transferred prohibited technology and goods to North Korea.

Since 1989, United States-China relations have seesawed between cooperation and confrontation. Human rights, arms proliferation, the status of Taiwan and Tibet, and the use of prison labor for export goods, all have given cause to continue sanctions. As well, trade issues–intellectual property rights and markets closed by tariffs and other restrictions–raise the specter of trade sanctions [7].

Note: Based on the China: U.S. Economic Sanctions Report.

Resources

Notes and References

1. 6 Gertz, Bill, “Missile Sanctions on China Vowed,” Washington Times, June 13, 1996, p. 1, 12.
2. 7 China-U.S. Relations, by Kerry Dumbaugh. January 18, 1996. CRS Issue Brief IB94002; China’s Rising Military Power and Influence — Issues and Options for the U.S., by Robert G. Sutter. January 16, 1996. CRS Report 96-66F; China in World Affairs — U.S. Policy Choices, by Robert G. Sutter. January 31, 1995. CRS Report 95-265S; and Ibid.