[Congressional Record Volume 143, Number 90 (Tuesday, June 24, 1997)]
[House]
[Pages H4312-H4313]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  REMARKS ON THE RENEWAL OF CHINA'S MFN TRADE STATUS WITH THE UNITED 
                                 STATES

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentlewoman from California [Ms. Millender-McDonald] is recognized for 
5 minutes.
  Ms. MILLENDER-McDONALD. Mr. Speaker, let me tell you why the 
resolution to disapprove China's Most-Favored-Nation status failed 
today on this House floor. This Congress did its homework and learned 
from the past how such protectionist action can backfire on a strong 
nation such as the United States.
  The United States has been in a trade posture with China since 
China's trade liberalization policies in the early 1980's, with the 
exception of the period after the Tiananmen Square incident when China 
briefly retreated into a period of isolation.
  Historically, China has taken protectionist action against the rest 
of the world. During the period from 246 to 209 B.C., China built the 
``Great Wall'' to defend its northern frontier against outsiders. Now, 
the wall serves no purpose except as a tourist attraction. In the 
1950's China's inward-oriented development policies culminated in the 
Great Leap Forward, a disastrous attempt to create a self-sufficient 
economy. That failed as well.
  Today, China is experiencing the Great Awakening, where a plan for 
enterprise reform, trade reform, and tax reform as well as a 
fundamental restructuring of the country's macroeconomic management is 
being pursued. This kind of action is working.
  China's economy is booming, and the United States is taking advantage 
of our trade relations to boost our own economy.
  America was built not only on the ideal of freedom and democracy, but 
on the economic base of free enterprise from which such ideals flow. 
Remember the Boston Tea Party? The Stamp Tax? Only by opening our minds 
and our markets can we help China reform its human rights policies, its 
intellectual property rights infringements, and its arms sales. Should 
we turn our heads to these practices? Certainly not. Should we have 
turned our back on them? Certainly not. Only through continuous 
engagement in dialogue will we have an opportunity to affect change.
  From 1990 to 1996, U.S. exports to China rose by 90 percent, the 
fastest growth rate of any major export market. This has been a direct 
benefit to Southern California given its recovery from a recession.

  China's economy is expected to be the world's largest by the year 
2012. We cannot afford to turn our backs on the opportunities offered 
through trade with China, particularly in light of the higher paying 
jobs directly supported by trade opportunities. That is the kind of 
protectionist action that would isolate the United States from the 
incredible market that is China. That would be cutting off our nose to 
spite our face.
  China is in need of 750 billion dollars' worth of infrastructure, 
most of which they will buy from the United States. Those who argued 
today for the revocation of MFN status by reason of a trade deficit--I 
ask you, how are we going to reverse the current trade deficit by 
blocking chances for U.S. export growth? The simple fact is, we cannot.
  A full one-quarter of all cargo entering the United States comes from 
China. My 37th Congressional District benefits from the Ports of Los 
Angeles and Long Beach, two of the biggest ports in the United States. 
In 1996, the Port of Long Beach alone handled $15.2 billion in United 
States-China trade. Companies such as Jackson Aerospace in Gardena, 
Alson Manufacturing in Compton, and Fisher Forging in Carson are all 
dependent on continued trade with China to maintain growth in the 
tremendous aerospace industry within Southern California.

[[Page H4313]]

  Exports of U.S. goods and services now total about $14.4 billion and 
support over 200,000 American jobs. My fellow Americans, these are a 
lot of jobs which would have been in jeopardy should we have not 
renewed China's MFN status.
  This House did the right thing by renewing China's MFN status today, 
and I applaud all of my colleagues who voted with me to sustain it.
  Thank you, Mr. Speaker.

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