y of intellectual-property piracy; and so on.”(Economist 18). One of the primary difficulties in trading with China has been the difficultyin getting a license to operate due to the strict Communist rule revolving around state-runmonopolies. But things have been improving. To date, only three foreign insurers (AIG, Tokio Fire & Marine, andLiberty Mutual) have been licensed to do business in China, and then onlyto limited urban areas. However, a number of foreign companies haveopened representative offices in the last few years and it is expected thatseveral additional licenses will be granted each year. There are currently 71representative offices of 43 separate foreign insurers and brokers from 12countries (Weidenbaum 228). In the area of insurance, state-run monopolies have presented difficulties, but are nowbeginning to disappear with time.China has now taken measures to improve the situation. In fact PremierZhu Rongji has attempted to broaden US access to Chinese markets. He has agreed withmany American CEO’s requests in this area. Change would consist of U.S. banks beingable to lend in local currency, manufacturers setting up their own distribution systems, and foreigners having the ability to own up to 49% in telecommunications services. In theagriculture sector, tariffs for farm products would be curtailed. As for insurancecompanies they would be able to do business through out China (Business Week 130). Inthe area of license distribution, things are definitely improving.It is time the United States of America and China end this trade war. Bothnations, especially the US, have spent an exorbitant amount of time and energy intoChina’s admittance into the World Trade Organization. Based upon an analyses of thepossible effects of free trade on the political, environmental, military, technological, andeconomic realms on both parties, it can be concluded that the US ought to allow China tojoin the World...
