China Says Mfn Renewal Conducive To Us Too

China said on Thursday the United States should not link trade with other issues and stressed that renewal of Most Favoured Nation (MFN) trade status for the worlds biggest market would help both countries.

It is in the interests of not only China but also of the United States, Chinese Foreign Ministry spokesman Cui Tiankai told Reuters when asked to comment on a vote by the U.S. House Ways and Means Committee to back renewing MFN for China.

The influential committee voted on Wednesday to back U.S. President Bill Clintons decision to renew MFN privileges, which grant China the same trade status as most other nations.

 

Revoking Chinas MFN status would mean substantial tariff increases on goods the United States imports from China.

This decision (by the committee) reflects that a majority of people and a growing number of people in the United States realise that so-called MFN treatment is part of normal and mutually beneficial trade ties based on an equal footing, Cui said.

More U.S. politicians and businessmen realise that ... China and the United States should maintain stable healthy relations and should not randomly link trade problems to unrelated problems.

Opponents of MFN for China argue that Washington should place principle ahead of commerce and take a firm stance with China because of concerns about human rights abuses and curbs on religious freedoms as well as worries about missile sales and nuclear technology transfers.

Proponents argue that it would be counterproductive to unilaterally withdraw MFN privileges, hurting U.S. business interests in China and possibly triggering retaliation and a trade war. Washington could cease to have any influence to improve the human rights situation in China, they say.

Cui said the United States had benefited tremendously from its trade with China and hinted that Beijing could turn to other nations for business if Washington revoked its trade privileges.

The United States has reaped huge benefits from Chinas reform and opening up and economic development, he said.

Now, competition is very keen in the world market. If the United States itself sets up (trade) barriers, we cant help it.

In Washington, Clinton met members of the House of Representatives on Wednesday and urged them to back renewal of Chinas MFN status. The full House could vote on MFN renewal for China as early as next week.

Efforts in the U.S. Congress to oppose the president on Chinas trade status have been unsuccessful since the Chinese armys bloody crackdown on pro-democracy demonstrators in Beijing in 1989.