[Congressional Record Volume 141, Number 44 (Thursday, March 9, 1995)]
[Extensions of Remarks]
[Page E561]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


     H.R. 1142--CODE OF CONDUCT FOR U.S. BUSINESSES IN CHINA: NEW 
                         LEGISLATION INTRODUCED

                                 ______


                            HON. TOM LANTOS

                              of california

                    in the house of representatives

                         Thursday, March 9, 1995
  Mr. LANTOS. Mr. Speaker, I rise today to call to the attention of my 
colleagues legislation I have introduced with three of our 
distinguished colleagues that would require United States businesses 
operating in China to adhere to internationally recognized labor 
standards. Its purpose is to ensure that the United States corporate 
presence in China promotes better working conditions and thereby 
contributes to political liberalization and respect for human rights 
inside that country. The bill's three original cosponsors, Nancy 
Pelosi, Chris Smith, and Gerald B.H. Solomon, reflect the broad, 
bipartisan support for a tougher United States stance toward China.
  When President Clinton decided last May to renew most-favored-nation 
trade status [MFN] for China and to delink human rights performance 
from trade benefits, I predicted that this action would not lay to rest 
this divisive issue, but only postpone our coming to terms with the 
brutal Chinese regime.
  The recent crisis over China's blatant violation of United States 
intellectual property rights [IPR] proves my point, and demonstrates 
that it is not possible to compartmentalize our relations with a state 
that has a total disregard for the rule of law. We are foolish to 
believe that the same Chinese Government that rejects the entire corpus 
of international human rights law will dutifully uphold international 
trade agreements. The truth, as the IPR dispute so clearly shows, is 
that a government that disregards international law in one area is 
going to do so in any area where it perceives an interest in following 
its own rogue course. Thus, the Chinese routinely violate arms control 
and trade agreements.
  Moreover, China's human rights performance has worsened since the 
President renewed MFN for China, as documented in State Department and 
Human Rights Watch/Asia reporting. Obviously, the Chinese Government 
feels that Washington will exact no price for its abysmal human rights 
record, and the continuing ruthless repression exposes the fallacy of 
the argument that trade provides an avenue for construction engagement 
with repressive regimes.
  Nevertheless, as the trips to China of Secretaries Brown and O'Leary 
demonstrated, the United States business community is eager to pursue 
promising opportunities in China, and enhanced United States-Chinese 
commercial relations will no doubt greatly benefit both countries.
  However, in the mad dash to get a piece of the action, let us at 
least ensure that United States companies do not inadvertently 
contribute to the maintenance of the intolerable status quo for 
hundreds of millions of Chinese workers. The foreign business 
community's ultimate value comes from its good example, not its mere 
presence. It must adhere to internationally recognized standards of 
labor law in order to be a catalyst of progress.
  Therefore, Mr. Speaker, I am introducing legislation with my three 
distinguished colleagues that would require United States businesses 
operating in China to follow internationally recognized labor 
standards. This code of conduct is not burdensome or unreasonable. It 
does not impose heavy reporting requirements or advocate labor 
practices as stringent as those found in the United States, but its 
adoption by the United States business community would spur political 
liberalization in China by making the workplace a safer, more humane 
environment where coercion, repression, and intimidation have no role.
  It is important for the Chinese Government, the American business 
community, and the administration to know that the Congress is serious 
about seeing progress on human rights in China. If voluntary action 
does not bring results, then binding legislation is required.
  The Sullivan principles were a major catalyst for change in South 
Africa, and it is my strong feeling that these principles can play the 
same role in China.
  If United States business truly wants to promote positive change in 
China, then adherence to this code of conduct offers an excellent 
vehicle for the implementation of that agenda without in any way 
harming United States competitiveness in the international marketplace. 
Demonstrating that the U.S. corporate community believes that good 
ethics and good business go hand-in-hand would send an unmistakable 
signal to the Chinese Government and provide powerful support to 
Chinese workers.


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