Legal Issue about Business between US and China

Legal Issue about Business between US and China

I. Introduction

A. Current Event/News

After many expectations and solid bargains for more than thirteen year, it was the year of 1999 when United States and China finally made a trade agreement. However, many organizations of the US were not able to get overall advantage from this trade agreement until Congress made sure that this agreement and trade relationship will be long lasting. In the year 2000, House of Representatives for United States accepted historic legislation that yielded permanent normal trade relations with China which was preconditioned to execute trade deal made between United States and China in the year 2000.

If it is seen from the perspective of China, four main issues are present that are quarrel over the imbalance of trade resulting from various techniques of calculating figures of trade, economic sanctions of United States against China and technology export control, suspected manipulation of currency and human rights associated to trade relations. Therefore, China-U.S. trade will continue as a hot political and legal issue in both these countries and persist to damage bilateral relations.

B. Description of Area of Law

It began in the year 1986 and took more than 15 years for China to complete on negotiating the General Agreement on Tariff and Trade (GATT) and WTO successfully. The officials of China consistently insisted during these negotiations of WTO that the country is developing therefore, more lenient terms and policies should be implemented for China in order to enter in WTO. However, United States was persistent that only way that China could be able to enter in the WTO is that it should liberalize trade regimes.



C. Problem

Since most of the organization in the US as well as China willing to perform international trade is working on large scale, therefore, they are many complications between these organizations and this is the reason that trade relationships of these two countries are not consistently positive. Moreover, China has been funding most of its trade organizations which is against the rules and regulations of WTO and this is the reason that international corporations are not able to launch themselves in China because of strict legalities in the country. On the other hand, the US is also not willing to compromise on any regulation and is persistent that China should obey all the laws which come under World Trade Ordinance (WTO).

Both these two countries have to become flexible if they want to perform more trade with each other. China must stop its funding to domestic corporations and trade should be directly performed by China instead of using Hong Kong for the trade. The US should also make such policies in which some leverage should be given to China so that a positive relationship can be build between the two countries. The US has been filing numerous cases against China in different courts therefore; these cases should be withdraw from the courts and must be solved by mutual dialogues between the ...