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In a
close vote of 237 to 197, the U.S. House of Representatives, on May
24, passed H.R. 4444, which grants China permanent normal trade
relations (PNTR) status.
Once the Senate passes its version
of this legislation, U.S. communications companies are ensured of
the ability to compete on equal terms with other global firms in
China's domestic communications market.
China has begun
introducing domestic competition to prepare for its imminent
accession to the World Trade Organization (WTO). Under WTO rules,
the United States must grant PNTR to China to be guaranteed the
market-opening concessions negotiated under the terms of China's
membership to the international trading community.
China's
competitive communications environment will change dramatically in
the next few years -- with PNTR, U.S. companies will be able to take
full advantage of this burgeoning market. By the end of 2000,
China's mobile phone market will be the second largest in the world
(second only to the United States). In ten years' time, China will
have a mobile phone penetration equal to approximately 250 million
subscribers. The proliferation of mobile phone usage, coupled with
the onslaught of Internet access via wireless handheld devices,
means China's communications media will soon be among the most
high-tech in the world.
The China PNTR vote was hotly debated
on Capitol Hill. TIA has been very active on this issue, getting out
the message that trade with China is important for U.S. industry. In
addition to actively lobbying members of the House -- through phone
calls and personal visits to Capitol Hill with TIA member companies
-- the association worked together with the U.S. High Tech Coalition
on China, a group of Washington D.C.-based companies and trade
associations, to get the message to vote in favor of PNTR to key
congressional constituencies. For example, TIA bought radio air time
on behalf of the coalition to reach an important congressional
district.
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