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Fdi

Essay by   •  October 15, 2010  •  Research Paper  •  906 Words (4 Pages)  •  1,539 Views

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I do not know which of the three above ideas is the best, but I do have a very interesting thought about the first one. If the United States is going to stand by and let China break the agreement that we have set then what is the point of having these rules or laws in the first place? If we can accept the fact that China is breaking our laws then we can also understand that this behavior can very well lead to a state of anarchy and lawlessness. These are all things that are breed by a lack of law, and also facilitated by a lack of proper enforcement of our current laws. This is a warning also for the future as we show China that the United States will not stand for the flagrant breaking of its laws.

United States policymakers employ economic sanctions not only to equalize trade and investment disputes, but also to reach non-economic policy objectives. This has been especially true with respect to China. Currently, the United States imposes the following economic sanctions on China. Restrictions on export licenses are things that the United States may deny if it was determined that the product could make a direct and significant contribution to the development of nuclear weapons and their delivery systems, electronic and submarine warfare, intelligence gathering, nuclear power projection, and air superiority. This restriction was placed on China on November 23, 1984. Another restriction placed on China dealt with the withholding of generalized system of preferences status. Section 502(b)(1) of the Trade Act of 1974 prevents the President of the United States from designating any developing country as "dominated or controlled by international communism" as a beneficiary of tariff reductions under this program. This restriction took place on January 1, 1976. Section 902 of the Foreign Relations Authorization Act for Fiscal Years 1990 and 1991 deals with the suspension of nuclear trade and cooperation with China. This sanction was set on February 16, 1990 and may be lifted if the President determines that China is making political reforms that reduce oppression of the people of Tibet. On June 5, 1989 President Bush suspended government-to-government and commercial arms sales to China. Also in June of nineteen eighty-nine President Bush directed the United States directors at the World Bank and the Asian Development Bank to seek postponement of new multilateral development bank loans to China. The Suspension of Overseas Private Investment Corporation (OPIC) and Trade and Development Agency (TDA) activities took place on February sixteenth nineteen-ninety. Section 902 of the Foreign Relations Authorization Act for fiscal year 1990 and 1991 expressed suspension of first the granting of O.P.I.C. insurance, reinsurance, financing, or guarantees to China and second the obligating of T.D.A. funds for new projects in China. This sanction is not unlike many others placed against China, in that it may be lifted if the President of the United States determines that China is making political reforms in Tibet. In addition Section 902 of the Foreign Relations Authorization Act for Fiscal Years 1990 and 1991 talks about the prohibition of the export of items on the Munitions Control List, and of United States satellites. This sanction placed in February of 1990 can be lifted if political conditions improve between China and Tibet. Another restriction placed on China by the United States on February 16, 1990 dealt with the prohibition of export licenses for crime control and detection equipment. This is among the long list of restriction placed against China in the fiscal year of 1990 in hopes to get China to change it political attitude towards Tibet.

Again there is more mention of restriction

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