This 1946 bilateral treaty shaped US-China trade relations but was criticized by scholars as economically disadvantageous to China due to US market dominance.
Key Facts
- Date signed
- November 4, 1946
- Date effective
- November 30, 1948
- Parties
- United States of America and Republic of China
- Preceded by
- Article XII of Treaty for Relinquishment of Extraterritorial Rights
- Governing article for ratification
- Article XXX
Cause → Event → Consequence
Both the United States and the Republic of China had previously expressed mutual desire for a formal bilateral commercial agreement, as indicated in Article XII of the Treaty for Relinquishment of Extraterritorial Rights in China, which created the framework and impetus for this new treaty.
On November 4, 1946, the United States and the Republic of China signed the Treaty of Friendship, Commerce and Navigation, a bilateral agreement intended to establish equal economic rights and regulate trade and commerce between the two nations, taking effect upon ratification exchange on November 30, 1948.
The US gained substantial economic privileges, with American products dominating the Chinese market and prompting complaints from Chinese businesses about unfair competition. Many scholars have characterized the treaty as unfavorable to China, drawing comparisons to earlier Unequal Treaties, as China lacked the economic capacity to exercise its nominal reciprocal rights.
Political Outcome
Treaty signed and ratified, granting broad economic privileges to both parties, though in practice benefiting the US disproportionately due to its greater economic development.
Trade relations governed by earlier extraterritoriality frameworks
Formal bilateral commercial treaty in place, with US economic dominance reinforced in the Chinese market