Published : 2024-05-17

On May 17, 2000, the Fundraising Committee of the U.S. House of Representatives and the Senate Committee on Finance voted to pass a bill granting China Permanent Normal Trade Relations (PNTR).

As early as 1979 when China and the U.S. established diplomatic relations, both countries had signed a China-U.S. trade agreement, deciding to grant each other “most favored nation” (MFN) status.

However, although the agreement entered into force the following year, the United States was required to review China's MFN status on an annual basis under its domestic law, the Trade Act of 1974.

This discriminatory practice has long been detrimental to the healthy and stable development of China-U.S. relations, and China has always expressed opposition to this, advocating for an early resolution.

In July 1998, then U.S. President Clinton signed a tax reform bill that changed the phrase "most favored nation" to 'normal trade relations' to bypass legal problems.

After the bill was passed by the committee, the U.S. House and Senate officially passed the bill granting China permanent normal trade relations on May 24 and September 19 of the same year respectively.

Since then, the way for China to join the World Trade Organization has been paved. After 15 years of long negotiations, China finally became the 143rd member of the WTO on December 11, 2001.