The Government of the United States of America and the Government of the People’s Republic of China;
in the spirit of the Joint Communiqué on the Establishment of Diplomatic
Relations between the United States of America and the People’s Republic
to enhance friendship between both peoples;
to develop further economic and trade relations between both countries on
the basis of the principles of equality and mutual benefit as well as
agreed as follows:
The Contracting Parties undertake to adopt all appropriate measures to
create the most favorable conditions for strengthening, in all aspects,
economic and trade relations between the two countries so as to promote
the continuous, long-term development of trade between the two countries.
In order to strive for a balance in their economic interest, the
Contracting Parties shall make every effort to foster the mutual expansion
of their reciprocal trade and to contribute, each by its own means, to
attaining the harmonious development of such trade.
Commercial transactions will be effected on the basis of contracts between
firms, companies and corporations and trading organizations of the two
countries. They will be concluded on the basis of customary international
trade practice and commercial considerations such as price, quality,
delivery and terms of payment.
With a view to establishing their trade relations on a nondiscriminatory
basis, the Contracting Parties shall accord each other most-favored-nation
treatment with respect to products originating in or destined for the
other Contracting Party, i.e. any advantage, favor, privilege or immunity
they grant to like products originating in or destined for any other
country or region, in all matters regarding:
Customs duties and charges of all kinds applied to the import,
export, re-export or transit of products, including the rules, formalities
and procedures for collection of such duties and charges;
Rules formalities and procedures concerning customs clearance,
transit, warehousing and transshipment of imported and exported products;
Taxes and other internal charges levied directly or indirectly on
imported or exported products or services;
All laws, regulations and requirements affecting all aspects of
internal sale purchase, transportation, distribution or use of imported
Administrative formalities for the issuance of import and export
2. In the event either Contracting Party applies quantitative restrictions to certain products originating in or exported to any third country or region, it shall afford to all like products originating in or exported to the other country treatment which is equitable to that afforded to such third country or region.
The Contracting Parties note, and shall take into consideration in the
handling of their bilateral trade relations, that, at its current state of
economic development, China is a developing country.
The principles of Paragraph 1 of this Article will be applied by the
Contracting Parties in the same way as they are applied under similar
circumstances under any multilateral trade agreement to which either
Contracting Party is a party on the date of entry into force of this
The Contracting Parties agree to reciprocate satisfactorily concessions
with regard to trade and services, particularly tariff and non-tariff
barriers to trade, during the term of this Agreement.
the purpose of promoting economic and trade relations between their two
countries, the Contracting Parties agree to;
Accord firms, companies and corporations and trading organizations
of the other Party treatment no less favorable than is afforded to any
third country or region;
Promote visits by personnel, groups and delegations from economic,
trade and industrial circles; encourage commercial exchanges and contacts;
and support the holding of fairs, exhibitions and technical seminars in
each other’s country;
Permit and facilitate, subject to their respective laws regulations
and in accordance with physical possibilities, the stationing of
representatives, or the establishment of business offices, by firms,
companies and corporations, and trading organizations of the other Party
in its own territory; and
Subject to their respective laws and regulations and physical
possibilities, further support trade promotions and improve all
conveniences, facilities and related services for the favorable conduct of
business activities by firms, companies and corporations, and trading
organizations of the two countries, including various facilities in
respect of office space and residential housing, telecommunications, visa
issuance, internal business travel, customs formalities for entry and
re-export of personal effects, office articles and commercial samples, and
observance of contracts.
Contracting Parties affirm that government trade offices contribute
importantly to the development of their trade and economic relations. They
agree to encourage and support the trade promotion activities of these
offices. Each party undertakes to provide facilities as favorable as
possible for the operation of these offices in accordance with their
respective physical possibilities.
Payments for transactions between the United States of America and the
People’s Republic of China shall either be effected in freely
convertible currencies mutually accepted by firms, companies and
corporations, and trading organizations of the two countries, or made
otherwise in accordance with agreements signed by and between two parties
to the transaction. Neither Contracting Party may impose restrictions on
such payment except in time of declared national emergency.
The Contracting Parties agree, in accordance with their respective laws,
regulations and procedures, to facilitate the availability of official
export credits on the most favorable terms appropriate under the
circumstances for transactions in support of economic and technological
projects and products between firms, companies and corporations, and
trading organizations of the two countries. Such credits will be the
subject of separate arrangements by the concerned authorities of the two
Each Contracting Party shall provide on the basis of most-favored-nation
treatment, and subject to its respective laws and regulations, all
necessary facilities for financial, currency and banking transactions by
nationals, firms, companies and corporations and trading organizations of
the other Contracting Party on terms as favorable as possible. Such
facilities shall include all required authorizations for international
payments, remittances and transfers, and uniform application of rates of
Each Contracting Party will look with favor towards participation by
financial institutions of the other country in appropriate aspects of
banking services related to international trade and financial relations.
Each Contracting Party will permit those financial institutions of the
other country established in its territory to provide such services on a
basis no less favorable than that accorded to financial institutions of
Both Contracting Parties in their trade relations recognize the importance
of effective protection of patents, trademarks and copyrights.
Both Contracting Parties agree that on the basis of reciprocity, legal or
natural persons of either Party may apply for registration of trademarks
and acquire exclusive rights thereto in the territory of the other Party
in accordance with its laws and regulations.
Both Contracting Parties agree that each Party shall seek, under its laws
and with due regard to international practice, to ensure to legal or
natural persons of the other Party protection of patent and trademark
equivalent to the patent and trademark protection correspondingly accorded
by the other party.
Both Contracting Parties shall permit and facilitate enforcement of
provisions concerning protection of industrial property in contracts
between firms, companies and corporations, and trading organizations of
their respective countries, and shall provide means, in accordance with
respective laws, to restrict unfair competition involving unauthorized use
of such rights.
Both Contracting Parties agree that each Party shall take appropriate
measures, under its laws and regulations and with due regard to
international practice, to ensure to legal or natural persons of the other
Party protection of copyrights equivalent to the copy right protection
correspondingly accorded by the other Party.
The Contracting Parties shall exchange information on any problem that may
arise from their bilateral trade, and shall promptly hold friendly
consultations to seek mutually satisfactory solutions to such problem. No
action shall be taken by either Contracting Party before such
consultations are held.
However, if consultations do not result in a mutually satisfactory
solution within a reasonable period of time, either Contracting Party may
take such measures as it deems appropriate. In an exceptional case where a
situation does not admit any delay, either Contracting Party may take
preventive or remedial action provisionally, on the condition that
consultation shall be effected immediately after taking such action.
When either Contracting Party takes measures under this Article, it shall
ensure that the general objectives of this Agreement are not prejudiced.
The Contracting Parties encourage the prompt and equitable settlement of
any dispute arising from or in relation to contracts between their
respective firms, companies and corporations, and trading organizations,
through friendly consultation, conciliation or other mutually acceptable
If such disputes cannot be settled promptly by any one of the
above-mentioned means, the parties to dispute may have recourse to
arbitration for settlement in accordance with provisions specified in
their contracts or other agreements to submit to arbitration. Such
arbitration may be conducted by an arbitration institution in the United
States of America, the People’s Republic of China, or a third country.
The arbitration rules of procedure of the relevant arbitration institution
are applicable, and the arbitration institution are applicable, and the
arbitration rules of the United Nations Commission on International Trade
Law recommended by the United Nations or other international arbitration
rules, may also be used where acceptable to the parties to the dispute and
to the arbitration institution.
Each Contracting Party shall seek to ensure that arbitration awards are
recognized and enforced by their competent authorities where enforcement
is sought, in accordance with applicable laws and regulations.
provisions of this Agreement shall not limit the right of either
Contracting Party to take any action for the protection of its security
This Agreement shall come into force on the date on which the Contracting
Parties have exchanged notifications that each has completed the legal
procedure necessary for this purpose, and shall remain in force for three
This Agreement shall be extended for successive terms of three years if
neither Contracting Party notifies the other of its intent to terminate
this Agreement at least thirty (30) days before the end of a term.
3. If either Contracting Party does not have domestic legal authority to carry out its obligations under this Agreement, either Contracting Party may suspend application of this Agreement, or, with the agreement of the other Contracting Party, any part of this Agreement. In that event, the Parties will seek, to the fullest extent practicable in accordance with domestic law, to minimize unfavorable effects on existing trade relations between the two countries.
The Contracting Parties agree to consult at the request of either
Contracting Party to review the operation of this Agreement and other
relevant aspects of the relations between the two Parties.
witness whereof, the authorized representatives of the Contracting Parties
have signed this Agreement.
at Beijing in two original copies this 7th day of July, 1979, in English
and Chinese, both texts being equally authentic.
For the Government of the United States of America Leonard Woodcock
For the Government of the Peoples Republic of China Li Qiang