U.S. Congress begins annual NTR debate over China

Asian Economic News, June 14, 1999

WASHINGTON, June 8 Kyodo

The administration of President Bill Clinton began its annual push Tuesday to get Congress to renew normal trade relations (NTR) with China. Deputy U.S. Trade Representative Richard Fisher and Stanley Roth, assistant secretary of state for East Asian and Pacific affairs, testified before an international trade subcommittee of the House of Representatives' Ways and Means Committee on to defend Clinton's decision last Thursday to renew NTR with China. Formerly known as most-favored-nation (MFN) status, NTR is automatically extended to nearly every country in the world. But for nonmarket economies, such as China, Congress is required to renew the status once a year. Congress has 90 days to respond to Clinton's request, something every president since 1980 has done to ensure Americans are able to purchase Chinese-made goods. "Renewal of normal trade relations is fundamental to any continuation of this policy," Fisher told the subcommittee session. Even so, the review provides an opportunity for critics of the administration's China policy to voice their opinions. "One of the most unequal economic relationships in the history of mankind is the American-Chinese trading relationship," Congressman Barney Frank said. The Massachusetts Democrat said Clinton was tolerating a trade deficit with China predicted to reach 67 billion dollars in 1999. China's human rights abuses, Frank said, must be considered in the decision to renew NTR. "Let's remember: China today is the greatest denier of human freedom in the world." Frank called the decision to change MFN to NTR as a political calculation to encourage voters to support China trade. Roth called Frank's remark an exaggeration. He urged the subcommittee to consider how renewal of NTR would be able to achieve the administration's goals. "I think there is no reason at all to believe that if NTR were denied to China that the human rights situation would get better. It would only get worse, as China would crack down even further," Roth said. Roth argued that denial of NTR would further deteriorate already strained Sino-U.S. relations. Last month, China was outraged at the bombing of its embassy in Belgrade by NATO forces, which the North Atlantic Treaty Organization says was a mistake. Also, a U.S. congressional committee alleges that China has systematically stolen nuclear secrets from U.S. research facilities. "There are tough problems in our bilateral relationship with China. Nonetheless, continued engagement of China is our best path, as is renewal of NTR," Roth told the session. "A clear-eyed strategy of principled, purposeful engagement with China remains the best way to advance U.S. interests." Congresswoman Nancy Pelosi, a California Republican, said the administration has described its policy toward China in a number of ways, though she called the relations "abnormal" and "grotesque." Pelosi said the policy does not provide sufficient parity in trade access for American companies to do business in China. "First it was constructive engagement. Then it turned to strategic partnership, and now it's called something else -- principled, purposeful engagement with our eyes wide open, without illusions. "Call it whatever you want, the policy remains the same: a failure. A failure," Pelosi told the panel.