APPENDIX 3

S&T AGREEMENTS, UNDERSTANDINGS, AND PROTOCOLS BETWEEN THE UNITED STATES AND

THE PEOPLE'S REPUBLIC OF CHINA

(Chinese and U.S. Government Implementing Agencies)

APPENDIX 4

THE ROLE OF STATE COMMISSIONS

In recent years, the number of state commissions have greatly expanded. These commissions are all headed by senior Chinese officials with the rank of Vice Premier. Thus, the heads of the commissions outrank the heads of China's ministries. They are supraministerial in their functions as well. Some commissions supervise specific ministries; such as, the State Agricultural Commission supervision over the activities of the Agricultural Ministry and the State Machine Building Commission supervision over the activities of the eight machine building ministries. However, in most cases, the roles of the commissions cut across ministerial lines; such as, the planning authority of the State Planning Commission.

State Planning Commission (SPC)-The SPC is responsible for drawing up long-term and annual plans. With the State Capital Construction Commission, the SPC determines the State's investment and construction programs. The SPC also plays a key role in determining the general outlines of foreign trade plans.

State Economic Commission (SEC)-The SEC is responsible for making sure that the annual plan is properly implemented. For example, if a shortage of steel appears to threaten plan fulfillment, the SEC would be responsible for adjusting the supply or the demand for steel as appropriate. Recently, the SEC has become very interested in improving China's economic management skills as one method of assuring plan fulfillment. For example, the Chinese Economic Management Association is supervised by the SEC.

State Science and Technology (S&T)-The S&T Commission has direct control over much of the scientific establishment including many of scientific institutions and laboratories. It also shares responsibility for the research activities of the various ministries. The S&T Commission is the Chinese organization that is generally responsible for the 13 S&T protocols that now exist with the United States. The U.S. counterpart is the Office of Science and Technology in the White House.

State Capital Construction Commission (SCCC)— The SCCC has the responsibility for carrying out China's investment program. Investment projects are generally managed by the ministries; for example,

dam projects are under the Ministry of Water Conservancy or the Ministry of Electric Power, and steel mills are under the Ministry of Metallurgical Industries. The role of the SCCC appears to be one of approving projects, assigning investment priorities, and monitoring the progress of the construction. The SCCC also appears to control factories that produce construction machinery.

State Energy Commission (SEC)-This commission was formed in September 1980 and will probably be responsible for China's effort to accelerate the growth of energy resources. It is too early to say whether it will also have authority to distribute energy supplies.

State Machine Building Commission (SMBC)— The SMBC was established to coordinate and rationalize the activities of the eight machine building ministries. As is well-known, the same or similar types of equipment are produced throughout China by many different factories that report to different ministries in Beijing. The SMBC represents one attempt to reduce the number of different types of machinery and the number of production facilities.

Foreign Investment Control Commission (FICC)— The FICC was established to approve or disapprove of joint ventures and foreign investment in China. The FICC has a staff of about 100 people. Its key bureaus are: Technology Acquisition, Import and Export, Foreign Investment, and overall planning.

Import-Export Control Commission (IECC)— The IECC shares the same leadership (currently Vice Premier Gu Mu) and the same staff with the FICC. The IECC appears to have authority over large foreign trade ventures that do not involve joint ventures or foreign investment such as trade compensation arrangements. The IECC also may have broad authority in determining the State's foreign trade plan, but at this writing, it is not clear whether this authority rests primarily with the FICC/IECC or with the SPC. The SPC and the Ministry of Foreign Trade seems to retain primary responsibility for "normal" or "traditional" trade while activities such as joint ventures and trade compensation fall outside the "normal" plan and are under the authority of the FICC/IECC.