Clinton Vows To Seek Renewal Of China Mfn Status

China roared into the limelight here again as President Bill Clinton announced that he would seek renewal of Most Favoured Nation (MFN) status for Beijing.

Were more likely to have a positive influence on China by engaging them than we are by trying to isolate them. I think it is a simple judgement, Clinton said in Washington on Monday.

The announcement sets the stage for a bitter battle on Capitol Hill between big business, which is fervently hoping for renewal, and a coalition of human rights activists and politicians who oppose it. MFN status for China has to be approved by Congress before it goes into effect.

 

The annual ritual of arguing over renewal of MFN status of China is certain to be more lively this year because of ongoing investigation into a series of suspicious campaign contributions made last year, allegedly on the direction of Beijings top leadership.

Several Congressmen are vowing to oppose MFN, angered by revelations that China may have channelled the contributions in an effort to rival Taiwans smooth lobbying techniques. Powerful New York Congressman Gerald Solomon, who heads the House Rules Committee, announced recently that he would fight against MFN renewal. Solomon believes that Chinese political contributor

Charlie Trie is hiding in mainland China, and would like to make MFN renewal conditional on Tries return to the US.

The Christian coalition, a grassroots-based organisation that has made itself into an influential player on Capitol Hill, vowed to immediately begin lobbying against the administrations efforts. Several other human rights and religious groups will keep it company, trying to force the White House to use MFN renewal as a quid pro quo for concessions from Beijing.

The administraion, however, had other priorities in mind. China will take over Hong Kong this summer, making it more important than ever for America to keep open its channels of communication with Beijing.

China is also one of the worlds largest markets, shopping for everything from aircraft to automobiles.

As Clinton pointed out Monday, trade with China accounts for more than 170,000 US jobs and that number looks set to grow.

Chinas growing trade surplus with the US is second only to Japan.

The White House is clearly gearing up for a protracted battle. Clinton could have postponed announcing his decision until June 3. By choosing to make the announcements early, the administration has now bought itself additional time to woo support on Capitol Hill.

Ironically, MFN status is a misomer. Virtually every US trading partner enjoys the benefit of MFN privileges; only a handful of countries such as Libya and Iraq have been denied the status. China although it is annualy subject to a sweeping debate over renewing its status, has had uninterrupted MFN privileges since 1980.

Ruggiero stress on liberal market

Reuter MANILA

World Trade Organisation director-general Renato Ruggiero said yesterday that China must present an ambitious programme top open up market access in its negotiations to join the trade watchdog.

I strongly recommended that China should present an ambitious offer in the market access... Ruggiero said in a media briefing. China is seen by others as an important and very dynamic trading partner.

China and its major trading partners will be holdings talks in Geneva this month on Beijings bid to join the WTO.

We have made some impressive progress, Ruggiero said, citing as an example the commitment China has made to respect intellectual property rights.

Both sides said that progress had been made at their last meeting in March. At the time, China said it would grant all companies, including wholly-owned foreign firms, the right to import and export after a three-year transitional period following its accession to the WTO.

Diplomats expect another WTO session in July and, if all goes smoothly, admittance for China next year.

Ruggerio is in Manila to attend the meeting of the Pacific Basin Economic Council, which is the oldest businessmens organisation with more than 1,200 corporate members from 20 economies.