Britain’s Policy Of Abolishing "China Differential":Its Origins, Process,and Consequences

With the formation of cold war between the United States and the Soviet Union, trade policy of export control became an important tool which western countries and America, as their head, economically contained Soviet Bloc. New China chose to lean on the socialist camp and then met UN forces on the battleground after the outbreak of Korean War. This not only made COCOM and UN dominated by America and Britain implement economic blockade and embargo on China, but also led to the branch of COCOM——China Committee which took "China Differential" policy toward China (including North Korea).Embargo on China had serious effects on economic stability and development of society of Britain and the Commonwealth. There have always been conflicts between Britain and America on trade control and Britain attributed these to execution of "China Differential". American delay and objection made Britain very disappointed and dissatisfied. After long-time discussion in vain, Britain resolutely and unilaterally abolished "China Differential" in May1957. The paper thinks that Britain’s propositions greatly moderated American radical policy of economic containment toward China in the process which America and COCOM formulated and implemented their trade control policy. During the process of discussion about "China Differential", Britain’s attitude shifted from great reduction to complete abolition and its position was uncompromising. Elimination of "China Differential" derived overall relaxation of East-West trade control and accordingly its standards were changed to restrict transfer of high technology. In addition, the cancel of differential embargo on China not only improved deteriorating economic and trade relations between China and West since embargo, but also produced certain positive effects on economic stability and development of society of Britain and the Commonwealth. Therefore,"China Differential" was one of the most important conditions under which East-West trade control could be further relaxed or not.Britain’s responses to trade control policy of America and COCOM are the main line in this paper. The main text is made up of four chapters expounding the formation of "China Differential", and the origins, process and consequences of Britain abolishing it under the system of COCOM.