[Weekly Compilation of Presidential Documents Volume 37, Number 46 (Monday, November 19, 2001)]
[Pages 1635-1636]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Memorandum on China's Accession to the World Trade Organization

November 9, 2001

Memorandum for the United States Trade Representative

Subject: Determinations under Section 1106(a) of the Omnibus Trade and 
Competitiveness Act of 1988--People's Republic of China

    Pursuant to section 1106(a) of the Omnibus Trade and Competitiveness 
Act of 1988, (19 U.S.C. 2905(a)), I determine that state trading 
enterprises account for a significant share of the exports of the 
People's Republic of China (China) and goods that compete with imports 
into China. I further determine that such state trading enterprises 
unduly burden and restrict, or adversely affect, the foreign trade of 
the United States or the United States economy, or are likely to result 
in such a burden, restriction, or effect.
    China is seeking to become a member of the World Trade Organization 
(WTO). The terms and conditions for China's accession to the WTO include 
China's commitments that it will ensure that all state-owned and state-
invested enterprises will make purchases and sales based solely on 
commercial considerations, such as price, quality, marketability, and 
availability, and that U.S. business firms will have an adequate 
opportunity

[[Page 1636]]

to compete for sales to and purchases from these enterprises on 
nondiscriminatory terms and conditions. In addition, the Government of 
China will not influence, directly or indirectly, commercial decisions 
on the part of state-owned or state-invested enterprises, including on 
the quantity, value, or country of origin of any goods purchased or 
sold, except in a manner consistent with the Marrakesh Agreement 
Establishing the World Trade Organization (WTO Agreement). China has 
also confirmed that state trading enterprises will make purchases that 
are not for government use. The obligations that China will assume under 
the WTO Agreement, including China's protocol of accession, meet the 
requirements of section 1106(b)(2)(A), (19 U.S.C. 2905(b)(2)(A)), and 
thus my determinations under section 1106(a) do not require invocation 
of the nonapplication provisions of the WTO Agreement.
    You are directed to publish this memorandum in the Federal Register.
                                                George W. Bush

[Filed with the Office of the Federal Register, 8:45 a.m., November 14, 
2001]

Note: This memorandum was published in the Federal Register on November 
15. This item was not received in time for publication in the 
appropriate issue.