Us House Panel Backs Clinton On China Mfn
The influential House Ways and Means Committee voted on Wednesday to back President Bill Clintons decision to maintain normal US trade relations with China.
The committee voted 34 to 5 to urge the full House of Representatives to reject a resolution sponsored by Representative Gerald Solomon, R-N.Y., that would disapprove Chinas Most Favoured Nation (MFN) trade status. The vote by the panel sends the measure to the full House with an adverse recommendation.
If we cease our commercial relationship with China, we will have extinguished our ability to improve the human rights situation there, Ways and Means Chairman Bill Archer, R-Texas, said. Our presence in China assists in spreading our values and ideals throughout the country as well as benefitting the Chinese workers employed by our companies.
Opponents argued that Washington should take a firm stance with China because of concerns about curbs on religious freedoms and human rights abuses as well as worries about missile sales and nuclear technology transfers. They argued to put principle ahead of commerce.
We cannot accept what is happening in China, Representative John Lewis, D-Ga., said. I believe in trade, free and open trade, but I dont believe in trade at any price. The cost for MFN is too high. I for one cannot pay that price.
Supporters of maintaining normal trade ties with China argued it would be counterproductive for the United States to unilaterally withdraw MFN privileges, which grant China the same trade status as most other nations.
They noted Hong Kong, which returns to Chinese rule on July 1, supports normal U.S. trade relations with China.
Supporters of MFN also expressed a weariness at the annual debate, which many lawmakers use to try to send a message to Beijing about their concerns. Representative Sander Levin, D-Mich., said it was a diversion from dealing with the important human rights, regional security and economic issues. Last year the U.S. trade deficit with China hit $38 billion and some analysts have said it could top $50 billion this year.
What we need is not a message, we need a set of policies, Levin said.
This has no real value whatsoever, Representative Robert Matsui, D-Calif., said of the annual ritual of renewing Chinas MFN status.
Revoking Chinas MFN status would mean substantial tariff increases on goods imported from China. U.S. officials have said tariffs would soar to around 40 percent, instead of current average of 6 percent.
Agriculture Secretary Dan Glickman told a Senate panel on Wednesday that normal trade relations with China was important to the American farm community.
To American agriculture, this could be a minimum $4 billion vote, he said. Without MFN, he said, China could turn to other exporter nations for cotton, grain and meat, he said.
The full House could vote on China MFN next week.
Last year the Senate never took up the issue after the House voted overwhelmingly to back Clintons decision to renew Chinas MFN.
Efforts in Congress to overturn the president on China trade status have been unsuccessful since the 1989 Chinese armys bloody crackdown on pro-democracy demonstrators in Tiananmen Square.