[Congressional Record Volume 142, Number 103 (Friday, July 12, 1996)]
[Extensions of Remarks]
[Page E1282]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      LET US EXTEND MFN FOR CHINA

                                 ______
                                 

                            HON. JACK FIELDS

                                of texas

                    in the house of representatives

                         Friday, July 12, 1996

  Mr. FIELDS of Texas. Mr. Speaker, I am here today to endorse the 
extension of most-favored-nation trading status with China. I believe 
that only by doing so can the United States play a role in promoting 
democracy, individual freedom, and free market economics in China. 
Extending MFN for China is in the mutual interest of China and the 
United States.
  Most favored nation [MFN] is merely a term used to indicate the 
standard or general tariff treatment the United States extends to 
virtually all countries in return for reciprocal tariff treatment for 
American exports.
  Currently our fifth largest trading partner, China accounts for $12 
billion in annual American exports. Our farmers, industrial equipment 
producers, high technology firms, and others all export American goods 
to China. Last year, the United States sold China 10 percent of our 
wheat and corn, 40 percent of our fertilizer, $270 million in heating 
and cooling equipment, $330 million in industrial machinery, $710 
million in telecommunications equipment, and $1.2 billion in civilian 
aircraft.
  Manufacturing these goods has created over 200,000 high-skill and 
high-wage American jobs. In Texas alone, foreign trade has produced 
more than 45,000 such jobs. If we fail to extend MFN to China, the 
United States will lose the reciprocity that MFN status makes possible. 
This would increase tariffs paid by American firms selling their 
products in China from an average rate of 5 percent to an average rate 
of 50 percent, and in some cases 100 percent. As a result, American 
exports to China would be dramatically reduced, many of the 200,000 
American jobs could be lost to overseas competitors, and imports from 
China--including footwear, toys, and apparel--would become more 
expensive for American consumers.
  China's economy is expanding at an astounding rate. It is estimated 
that by the year 2002 China will have the largest economy in the world 
and will continue to be a major importer of American products. The 
World Bank projects that China will spend $750 billion on 
infrastructure in the next decade. If the United States scales back its 
trade relations with China, American firms will not be in a position to 
participate in this rapidly expanding Chinese economy in the years 
ahead. Europe and Asia will enjoy unrestricted access to the rapidly 
growing Chinese market, putting the United States at a competitive 
disadvantage.
  I recently traveled to China and witnessed firsthand the positive 
impact the information age is having on the Chinese people and the 
Chinese government. China is predicted to become the largest market for 
American exports of telecommunications equipment in the next decade. 
Not only are the economic implications behind this new openness 
important, but the social ramifications as well. China's increasing 
desire for high technology products and information will be mutually 
beneficial to both the United States and China economically, 
politically, and socially.
  Human rights and democracy are not promoted or enhanced by shutting 
off the flow of technology and information. Open, fair, and competitive 
trade is the most effective means by which the United States can play a 
role in enhancing the economic and political well-being of the Chinese 
people.
  MFN should not be an issue the Congress addresses on an annual basis. 
This trade status has been extended to virtually every nation around 
the world. In order to strengthen Sino-American trade relationships, 
the United States should treat China no better--but certainly no 
worse--than we treat our other trading partners.
  Congress should end the practice of linking human rights conditions 
in China to the issue of MFN status for China. The United States 
maintains mutually beneficial economic relationships with many 
countries around the world with which we have political or cultural 
differences. These differences should be addressed in the diplomatic 
arena, not by taking actions likely to trigger a trade war between two 
great trading partners.
  For all these reasons, it is imperative that the United States 
maintain MFN trade relations with China now and in the years to come. 
The revocation of China's MFN status is not in the best interest of the 
United States. Mr. Chairman, let us do what is best for American and 
Chinese workers, democracy in China, and free trade. Let us extend MFN 
for China.

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