Industrial tariffs on U.S. products will fall from an average of 24.6 percent in 1997 to an average of 9.4 percent by 2005. Considering that manufactured goods comprise a large proportion of American exports, the drop in Chinese tariffs is good news for our high-tech manufacturers and basic industries. In information technology, tariffs on products such as computers, semiconductors, and all Internet-related equipment will decrease from an average of 13.3 percent to zero by 2005. Our information technology firms lead the world and stand to earn handsomely in this huge, expanding, and information-hungry market. The agreement also opens China's market for services.
China agrees to ensure current market access and activities for our service firms.
The agreement also safeguards the right of American businesses to distribute products other than those they make in China as well as own or manage distribution networks, wholesaling outlets, or warehouses. For the first time, China will open its telecommunications sector and significantly expand investment and sales rights for financial services firms. And it will greatly increase the opportunities open to professional services such as law firms, architects, and engineers. Here, too, American firms lead the world and can anticipate a bounty of opportunity in China. This agreement locks in and expands our access to a market of more than one billion people.