[Congressional Record Volume 143, Number 147 (Tuesday, October 28, 1997)]
[House]
[Pages H9563-H9564]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                            A HISTORIC VISIT

  The SPEAKER pro tempore. Under the Speaker's announced policy of 
January 21, 1997, the gentleman from Florida [Mr. Stearns] is 
recognized during morning hour debates for 5 minutes.
  Mr. STEARNS. Mr. Speaker, I rise to talk about a very controversial 
and

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highly important historical event. I am speaking about the visit of 
China's President Jiang Zemin to our Nation. President Jiang's visit 
will be the first visit for a Chinese leader since Deng Xiaoping was 
received by President Carter in 1979.
  The relationship between China and the United States will be the 
world's most important and most interesting in the dawn of the 
unfolding millennium. This visit will help set the table of whether 
this relationship will be based on distrust and animosity that will 
give rise to a new global confrontation between two giant superpowers 
or if this relationship will be based upon a working relationship of 
understanding and mutual respect between two partners.
  I would like to see the latter relationship develop, but I believe 
its development will be based upon China's willingness to be a global 
leader that applies the standards of democracy and true free markets to 
their own Nation. The term ``comprehensive engagement'' is being used 
to detail the talks this week. I believe most of us in Congress and 
most of our Nation desires a peaceful relationship with China and to be 
engaged comprehensively. But the administration has to prioritize the 
issues of contention between our nations in order to make President 
Jiang's visit an achievement.
  As one observer has said, this summit will demand something that the 
Clinton administration has yet to produce, a clearly articulated set of 
priorities. Without prioritizing United States interests in China, the 
administration's present construct of engagement is meaningless. What 
China needs to do is to change its domestic law and make a commitment 
that it will uphold international obligations embodied in applicable 
international treaties.
  One of the larger problems with China is its current trade imbalance. 
The trade deficit with China reached $40 billion in 1996 alone, and it 
is expected that the 1997 trade deficit with China will be even 
greater. This translates into amazing figures that every American 
spends approximately $150 a year more on Chinese goods than China 
spends on United States products. President Clinton should urge 
President Jiang to work to reduce tariffs and nontariff barriers to aid 
United States businesses who are trying to compete in China.
  As it seems with most of our trading partners, it is easier for 
Chinese products to enter into the United States than for American 
products to have access to the Chinese market. Reducing applicable 
tariffs will encourage United States sales and will help reduce the 
trade imbalance with China.
  Another factor, Mr. Speaker, in opening up the Chinese market will be 
to encourage President Jiang to dismantle as quickly as possible the 
overwhelming amount of state-owned enterprises. The traditional 
bureaucratic state control of businesses acts as an economic drag and 
increases the tendency for trade deficits. By privatizing these 
enterprises China will allow market forces to determine their success 
and would allow United States companies an even playing field in order 
to compete.
  China's No. 1 economic priority is to ascend to the World Trade 
Organization. The United States should continue resisting China's 
membership to the WTO unless they begin reducing their own tariffs and 
if they begin adhering to international legal standards as if it 
applies to business contracts and other legal norms.
  In addition, Mr. Speaker, China lacks many of the laws that apply to 
global commerce. China needs the proper legal infrastructure regarding 
contracts, private property ownership and arbitration in order to 
support China's continued economic growth.

                              {time}  1100

  So the United States businesses receive the legal protection to 
operate in full capacity in the Chinese market.
  China needs to adhere to democratic values. They must continue the 
development of democratic values in China that should receive priority 
attention on the summit's agenda. Other things, such as religious 
persecution, international covenants on human rights, legislative and 
judicial exchanges, and grassroots democracy must also be on the 
agenda. A modern, open, legislative and judicial system in China is 
necessary to protect religious, economic and political freedoms.
  In conclusion, Mr. Speaker, this morning I hope the visit of 
President Jiang is a first step in resolving our differences with 
China, and I hope that President Jiang will follow up on some of the 
things we talked about this morning. That will be a significant 
accomplishment.

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