U.S. Assistance Programs in China

Thomas Lum
Specialist in Asian Affairs

This report examines U.S. foreign assistance activities in the People’s Republic of China (PRC), including U.S. Department of State and U.S. Agency for International Development (USAID) programming, foreign operations appropriations, policy history, and legislative background. International programs supported by U.S. departments and agencies other than the Department of State and USAID are not covered in this report.

U.S. foreign assistance efforts in the PRC aim to promote human rights, democracy, the rule of law, and environmental conservation in China and Tibet and to support Tibetan livelihoods and culture. The United States Congress has played a leading role in initiating programs and determining funding levels for these objectives. Congressionally mandated rule of law, civil society, public participation, and related programs together constitute an important component of U.S. human rights policy towards China. According to the Organization for Economic Cooperation and Development, the United States is the largest provider of “government and civil society” programming among major bilateral foreign aid donors.

During the past decade, the U.S. Department of State and USAID have administered a growing number and range of programs in China. Between 2001 and 2010, the United States government authorized or made available nearly $275 million for Department of State foreign assistance efforts in the PRC, of which $229 million was devoted to human rights, democracy, rule of law, and related activities, Tibetan communities, and the environment. U.S. program areas include the following: promoting the rule of law, civil society, and democratic norms and institutions; training legal professionals; building the capacity of judicial institutions; reforming the criminal justice system; supporting sustainable livelihoods and cultural preservation in Tibetan communities; protecting the environment; and improving the prevention, care, and treatment of HIV/AIDS in China. The direct recipients of State Department and USAID grants have been predominantly U.S.-based non-governmental organizations (NGOs) and universities. Some Chinese NGOs, universities, and government entities have participated in, collaborated with, or indirectly benefited from U.S. programs and foreign aid grantees.

Some observers have debated the efficacy of U.S. foreign assistance efforts in China. Some policy analysts argue that U.S. democracy, rule of law, and related programs have had little effect in China due to political constraints and restrictions on civil society imposed by the PRC government. Furthermore, some policy makers contend that the United States should not provide assistance to a country, like China, that has significant foreign aid resources of its own. Other observers argue that U.S. assistance activities in China have helped to build social and legal foundations for political change and bolster reform-minded officials in the PRC government. Some experts also propound that U.S. programs have nurtured relationships among governmental and non-governmental actors and educational institutions in the United States and the PRC, which have helped to develop common understandings about democratic norms and principles.


Date of Report: April 22, 2011
Number of Pages: 15
Order Number: RS22663
Price: $29.95

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North Korea: Legislative Basis for U.S. Economic Sanctions

Dianne E. Rennack
Specialist in Foreign Policy Legislation

U.S. economic sanctions imposed on North Korea are instigated by that country’s activities related to weapons proliferation; regional disruptions; terrorism; narcotics trafficking; undemocratic governance; and illicit activities in international markets, including money laundering, counterfeiting of goods and currency, and bulk cash smuggling. The sanctions have the following consequences for U.S.-North Korea relations: 

• Trade is minimal and mostly limited to food, medicine, and other humanitarianrelated goods. North Korea has no advantageous trade status and is outright denied certain goods—including luxury goods—and trade financing, primarily due to its proliferation activities. The Department of Commerce places North Korea in the two most restricted country groups for exports; imports require a license from the Treasury Department’s Office of Foreign Assets Control; using a North Korea-flagged vessel for any transaction is prohibited. 
• Foreign aid is minimal and mostly limited to refugees fleeing North Korea; broadcasting into the country; nongovernmental organization programs dedicated to democracy promotion, human rights, and governance; emergency food aid; and aid related to disabling and dismantling the country’s nuclear weapons program. By law, U.S. representatives in the international financial institutions (IFI) are required to vote against any support for North Korea due to its nuclear weapons ambitions. Human rights and environmental activities would also likely result in U.S. objections to North Korea’s participation in the IFI.
• Arms sales and arms transfers are fully denied. 
• Assets are blocked for certain individuals and entities, should such assets come under U.S. jurisdiction. 

Since the outbreak of the Korean War in 1950, the United States had imposed fairly comprehensive economic, diplomatic, and political restrictions on North Korea. In 1999, however, President Clinton announced he would lift many restrictions on U.S. exports to and imports from North Korea in areas other than those controlled for national security concerns; the Departments of Commerce, Treasury, and Transportation issued new regulations a year later that implemented the new policy. On June 26, 2008, President George W. Bush removed restrictions based on authorities in the Trading With the Enemy Act and the terrorism designation, replacing them with more circumscribed economic restrictions related to proliferation concerns.

The U.S. sanctions in place are a result both of requirements incorporated into U.S. law by Congress and decisions made in the executive branch to exercise discretionary authorities. Though the President, in accordance with the Constitution, leads the way in conducting foreign policy, Congress holds substantial power to shape foreign policy by authorizing and funding programs, advising on appointments, and specifically defining the terms of engagement in accordance with U.S. political and strategic interests. This report presents the legislative basis for U.S. sanctions policy toward North Korea. These sanctions are a critical tenet of the larger bilateral relationship, and this report highlights Congress’s role and responsibility in determining the nature of U.S.-North Korea relations. This report focuses on U.S. law and does not address the impact or effectiveness of the sanctions; several other reports available from CRS address these matters. See Appendix A for a selected list of other CRS products relating to U.S.-North Korea relations.


Date of Report: April 25, 2011
Number of Pages: 32
Order Number: R41438
Price: $29.95

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Nepal: Political Developments and Bilateral Relations with the United States

Bruce Vaughn
Specialist in Asian Affairs

Nepal has undergone a radical political transformation since 2006, when a 10-year armed struggle by Maoist insurgents, which claimed at least 13,000 lives, officially came to an end. The country’s king stepped down in 2006, and two years later Nepal declared itself a republic, electing a Constituent Assembly in 2008 to write a new constitution, which is currently being drafted. Though the process of democratization has had setbacks and been marked by violence at times, Nepal has conducted reasonably peaceful elections, brought former insurgents into the political system, and in a broad sense, taken several large steps towards entrenching a functioning democracy.

This still-unfolding democratization process makes Nepal of interest to Congress and to U.S. foreign policymakers. A Congressional Nepal caucus has been newly formed, which should help further strengthen relations between the two countries, which have traditionally been friendly. U.S. policy objectives toward Nepal include supporting democratic institutions and economic liberalization, promoting peace and stability in South Asia, supporting Nepalese territorial integrity, and alleviating poverty and promoting development.

Nepal’s status as a small, landlocked state situated between India and China also makes it important to foreign policymakers. Nepal’s reliance on these two giant neighbors leads it to seek amicable relations with both, though ties with India have historically been closer. Some believe India is concerned a Maoist regime in Nepal could lend support to Maoist rebels in India. China, meanwhile, has taken several steps to pressure Nepal to repatriate, or at least constrain the activities of, refugees crossing the border from Tibet.

The place of Nepal’s Maoists remains a delicate question that will do much to determine the fate of the nation’s democracy. The group surprised many by peacefully challenging, and winning, the April 10, 2008, Constituent Assembly elections. During the civil war, the Maoists’ stated aim had been to establish a peasant-led revolutionary communist regime, but once part of the political process, their objectives appear to have moderated. They have since lost control over government, and then returned as part of a coalition led by the Communist Party of Nepal United Marxist Leninist (CPN-UML).

Two key challenges presently face Nepal. The first is to complete the peace process, which would require a resolution of the difficult issue of how to integrate former Maoist fighters into the army, or into society. The second key challenge is completing the drafting of a constitution. This raises the question of establishing a new federal structure that would address grievances of groups that feel they have been underrepresented in the key institutions of the state, particularly in the Terai region bordering India.


Date of Report: April 7, 2011
Number of Pages: 20
Order Number: RL34731
Price: $29.95

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U.S.-Vietnam Economic and Trade Relations: Issues for the 112th Congress

Michael F. Martin
Specialist in Asian Affairs

Since the resumption of trade relations in the 1990s, Vietnam has rapidly risen to become a significant trading partner for the United States. Along with the growth of bilateral trade, a number of issues of common concerns, and sometimes disagreement, have emerged between the two nations. Congress may play a direct role in the U.S. policy on some of these issues.

Bilateral trade has grown from about $220 million in 1994 to $18.6 billion in 2010. Vietnam is the second-largest source of U.S. clothing imports, and a major source for footwear, furniture, and electrical machinery. Much of this rapid growth in bilateral trade can be attributed to U.S. extension of normal trade relations (NTR) status to Vietnam. Another major contributing factor is over 20 years of rapid economic growth in Vietnam, ushered in by a 1986 shift to a more marketoriented economic system.

Bilateral trade may increase if both nations become members of the Trans-Pacific Strategic Economic Partnership Agreement (TPP). The United States and Vietnam are among the nine countries negotiating the terms of expansion of the trade association. The Obama Administration envisions an expanded TPP as a “21st Century free trade agreement” that will become the cornerstone for a trans-Pacific regional trade association. Vietnam is also a party to negotiations to form a larger pan-Asian regional trade association based on the Association of Southeast Asian Nations (ASEAN) that could exclude the United States and prove to be an alternative to the TPP.

The growth in bilateral trade has not been without its accompanying issues and problems. Vietnam has applied for acceptance into the U.S. Generalized System of Preferences (GSP) program and is participating in negotiations of a Bilateral Investment Treaty (BIT) with the United States. Vietnam also would like to be officially recognized as a market economy.

There have also been problems with U.S. imports of specific products from Vietnam, particularly catfish-like fish known as basa or tra. In 2002, Congress passed legislation that prohibited the labeling of basa and tra as “catfish.” In 2008, the 110th Congress passed legislation that transferred the regulation of catfish from the Food and Drug Administration to the U.S. Department of Agriculture (USDA). The Vietnamese government strongly protested these actions as largely protectionist measures. On February 24, 2011, the USDA released proposed new catfish regulations, which did not resolve the status of Vietnam’s basa and tra exports.

An examination of recent trends in bilateral trade reveals that other product categories—such as footwear, furniture, and electrical machinery—could generate future tension between the United States and Vietnam. Observers of Vietnam’s economic development have also been critical of Vietnam’s protection of workers’ rights, its enforcement of intellectual property rights laws and regulations, and the country’s exchange rate policies.

The 112th Congress may play an important role in one or more of these issues, as have past Congresses. The 112th Congress would have to consider implementing legislation if a TPP agreement is concluded. If the 112th Congress should take up GSP renewal, it may also consider Vietnam’s pending application. The 112th Congress may also weigh in on its designation as a market or non-market economy. Finally, if current growth trends continue, Congress may be asked to act on the rising amount of footwear, furniture, and/or electrical machinery being imported from Vietnam. This report will be updated as circumstances require.


Date of Report: April 5, 2011
Number of Pages: 25
Order Number: R41550
Price: $29.95

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Japan 2011 Disaster: CRS Experts

Ben Dolven
Section Research Manager

The following table provides access to names and contact information for CRS experts on  policy concerns relating to the nuclear and humanitarian disaster unfolding in Japan.

Policy areas identified include  

• Nuclear power, nuclear safety, and radioactive heath concerns;  
• Geology, earthquakes, and tsunamis;  
• U.S. relations with Japan;  
• U.S. government response to the disaster; and
• Economic impacts of the crisis.

Date of Report: April 7, 2011
Number of Pages: 3
Order Number: R41692
Price: $19.95

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To order, e-mail Penny Hill Press  or call us at 301-253-0881. Provide a Visa, MasterCard, American Express, or Discover card number, expiration date, and name on the card. Indicate whether you want e-mail or postal delivery. Phone orders are preferred and receive priority processing.