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U.S. House of Representative Passes PNTR for China, Guaranteeing U.S. Companies Market Access

   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.