Semiconductor Industry Hails U.S. House Approval of China PNTR
San Jose-May 24, 2000- The
Semiconductor Industry Association (SIA) today hailed the bipartisan vote by the
House of Representatives in granting permanent normal trade relations (PNTR)
with China. PNTR gives the U.S. the trade advantages in China that China
currently has in the U.S.
"Today's vote by the U.S. House to grant PNTR for China represents a giant
opportunity for the semiconductor industry," said SIA President George Scalise.
"Our number one legislative objective this year is congressional approval of
PNTR with China so that our industry can benefit from the opening of this
important market."
Currently, the semiconductor market in China is estimated to be an $8 billion
per year market and it is growing rapidly. It is expected to become the third
largest semiconductor market in the world within the next year, and the second
largest by 2010.
"This has truly been a bipartisan effort and we applaud the work and
dedication of President Clinton, Ambassador Barshefsky, the House Republican
leadership, and key Democratic leaders," added Scalise. "Without their steadfast
support, we would have lost this great opportunity to improve our trade
relations with China. This is a clear economic win for the United States.
Today's vote will open China, the world's largest emerging market to American
goods and services, creating American jobs and increasing U.S. exports."
During the U.S.-China bilateral negotiations, the semiconductor industry
outlined six priority objectives that will greatly improve our ability to do
business in China. Each one of these was accomplished under the terms of the
bilateral agreement concluded by the United States Trade Representative's Office
last November. Specifically, China agreed to: eliminate its 6-10% semiconductor
tariffs by 2002; grant trading and distribution rights to foreign companies;
guarantee that state-run companies will make purchasing decisions on the basis
of commercial considerations; stop imposing export performance, technology
transfer and local content requirements as a condition for market access or
investment approval; protect intellectual property; and allow the U.S. to
continue to use its current non-market economy antidumping methodology.
The Semiconductor Industry Association is the forum in which semiconductor
companies work collectively to advance the competitiveness of the $76.6 billion
U.S. industry, a leading contributor to the nation's economy. The SIA is the
premier trade association representing the semiconductor industry, with member
companies comprising more than 90 percent of U.S.-based semiconductor
production. Collectively, the chip industry employs a domestic workforce of more
than 284,000 people.