Legislation Amending the Foreign Assistance Act Statement on Signing S. 1916 Into Law

The Congress has acted wisely in passing legislation amending the Foreign Assistance Act to authorize the Overseas Private Investment Corporation (OPIC) to operate in the People's Republic of China.

The establishment of diplomatic relations between the United States and the PRC in January 1979 opened a new era based on equality, common interest, and mutual respect. In order to develop this mutually beneficial relationship, we have made agreements covering scientific and technological cooperation, consular affairs, claims settlement, and bilateral trade. The PRC has now adopted a new law on joint ventures, making it possible for private American business to participate in the economic modernization and growth of the PRC.

Over the past 10 years, OPIC has written more than $10 billion in political risk insurance, covering long-term American investments in nearly 70 developing countries. By facilitating this flow of private investment OPIC and our private investors carry out an important part of U.S. foreign economic policy. Now, private U.S. investors and contractors insured by OPIC can serve the interests of both the United States and China.

OPIC is selective, supporting only those investments that contribute to the development of the host country and that do not harm the U.S. economy. The investments and contracts supported by OPIC open up new markets for U.S. industrial goods and agricultural products.

This legislation will permit negotiation of an agreement to initiate OPIC services in the People's Republic of China. It is a further step in establishing mutually beneficial economic relations between the largest nation and the largest economy in the world.