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U.S. High-Tech Industry Coalition on China
- American Electronics Association - Business Software Alliance -
- Computer Systems Policy Project - Computing Technology Industry Association -
- Electronic Industries Alliance - Information Technology Industry Council -
- Semiconductor Industry Association - Semiconductor Equipment & Materials International -
- Software & Information Industry Association - Telecommunications Industry Association -
- United States Information Technology Office -

Benefits to the American Internet Industry
of
Permanent Normal Trade Relations with China

Internet Industry Facts

The Internet is a global medium. Internet use in the U.S. and around the world has transformed with way people work, live, learn and play.

In the U.S., Internet use has exploded, as more than half of all American homes have personal computers and access to the Internet.

Internet companies are transforming traditional sectors, fueling productivity gains, creating unprecedented job growth, and raising standards of living.

Use of the Internet in China is growing at a rapid pace, as well. The number of Chinese Internet users has grown dramatically from 1.1 million in May 1998 to nearly 9 million at the end of 1999. By the end of 2000, the number of Internet users in China is expected to reach 20 million.

Additionally, over 150 Internet Service Providers currently operate in China.

Why PNTR with China is Important

China's accession to the World Trade Organization (WTO) will give the United States an opportunity to participate in the development of the Internet and e-commerce in China, by ensuring that China remains open to the Internet and to e-commerce.
By participating in this market, vital social services – such as education, communications and telemedicine – can be delivered across the Internet, laying the groundwork for e-commerce and the economic growth, productivity and jobs it will generate.
China is currently developing the regulatory environment that will govern its approach to the Internet. The China’s entry to the WTO will deepen China's commitment to an open Internet policy. As part of the WTO accession agreement with the United States, China has committed to significantly open its information technology sector to foreign participation and lay the foundation for a robust e-commerce industry.
China will assume the obligations of the WTO agreement for basic and value-added telecommunications services. As a result, U.S. companies will be able to enter into joint ventures with Chinese firms in selected areas immediately upon China's accession, subject to Chinese regulations governing this sector.
China will lower tariffs on a wide range of information technology products. These tariffs, currently averaging 13.3 percent, will be reduced to zero by the year 2005. This elimination of tariffs will facilitate the adoption of Internet architecture and increase purchases of computers, which will allow Chinese consumers the ability to enjoy greater Internet access.
China’s entry to the WTO will lay the foundation for e-commerce, including the liberalization of trading rights, distribution channels, financial services, express delivery, air courier and freight forwarding. Along with opening the telecommunications sector, these commitments will help create an environment in which the full value chain of e-commerce can be realized.
Failure to extend NTR permanently will prevent U.S. firms from fully participating in the development of the Internet and e-commerce in China. Without China’s accession to the WTO, American firms will be denied the opportunity to participate fully in the development of a truly global Internet medium, at the same time that foreign firms would be able to work with China, which would undermine continued American leadership in this sector.

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