[Congressional Record Volume 146, Number 111 (Tuesday, September 19, 2000)]
[Senate]
[Pages S8667-S8723]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
TO AUTHORIZE EXTENSION OF NONDISCRIMINATORY TREATMENT TO THE PEOPLE'S
REPUBLIC OF CHINA--Resumed
The PRESIDING OFFICER. Under the previous order, there will now be 90
minutes of debate under the control of each leader.
The Senator from Ohio.
Mr. REID. Mr. President, will the Senator yield?
Mr. DeWINE. I yield to my colleague.
Mr. REID. Mr. President, on behalf of Senator Daschle, I yield 5
minutes to Senator Lautenberg and 5 minutes to Senator Murray when
Senator DeWine completes his remarks.
Mr. DeWINE. Mr. President, for the benefit of my colleagues, I yield
myself 30 minutes. I candidly don't expect to take 30 minutes. For
those Senators who wish to speak after me, it will probably be a
shorter period of time than 30 minutes.
Mr. President, I rise today to speak on the legislation before us--
H.R. 4444, the legislation extending Permanent Normal Trading Relations
to the People's Republic of China or PNTR. As we approach's today's
final vote, I want to make it clear that I believe strongly in free and
fair trade. And, I support efforts aimed at increasing free and fair
trade with China. However, as we approach the vote, I think we must
take a few minutes and try to put the current debate into its proper
perspective. That is what I intend to do.
Passing PNTR will result in lower trade barriers and more U.S. sales
to China. We know that. But, the extent of our increased sales will
depend on factors beyond our control. Our ability to send more exports
to China depends largely on China's continued economic growth, its
compliance with the bilateral agreement, and its development of a
middle-class.
While increasing trade with China certainly is important, we must put
this current debate into its proper context. We need to view this
debate as it relates to both our worldwide trade policy and to our
foreign policy and national security interests. With this broader
perspective in mind, it becomes very clear that passing the PNTR
legislation is just one part of our overall relationship with China and
one part of our overall global trade policy. There remain other
pressing foreign policy issues and other trade issues that await our
next President, the next Congress, and the American people. Let me
explain.
The fact is, as we all know, the United States is a leader in the
area of free trade. If we fail to pass the PNTR legislation, we would
be sending a signal to the world that the United States wants to
isolate China. That's a signal we don't want to send. Both by word and
deed, the United States must be the world's leader in promoting free
trade. At the same time, though, we also don't want to send China--and
the
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world--a signal that we will tolerate the proliferation of weapons of
mass destruction--a practice China engages in openly.
In terms of our overall trade policy, we also cannot send a signal to
our neighbors in the Western Hemisphere that says we are only
interested in concentrating on the Chinese market. Since so much time
and energy and resources has been directed to liberalizing trade in
China, it may be a surprise to some that China represents only two
percent of our foreign sales.
To keep it in proper perspective, there was no one who estimates that
percentage will go beyond 2\1/2\ or 3 percent in the immediate future.
Two percent of our total foreign markets is only $13 billion in U.S.
sales to China.
Now, compare that to markets closer to home. Last year, Canada was
our number one export destination, with $167 billion in U.S. sales,
while Mexico was our second largest export market with $87 billion in
sales. Further, our exports to Brazil ($13.2 billion) last year
exceeded our sales to China. And what's more, forty-four percent of our
exports remained right here in our own hemisphere.
Those $13 billion in sales to China pale in comparison to trade
within our hemisphere. Yet, the Administration and the business
community have made granting PNTR to China their single-minded trade
focus. This narrow agenda has not come without cost.
Because the Administration has not emphasized expanding free trade in
our hemisphere, other nations are taking the lead in seizing the
economic opportunities that are right in our backyard. Our inaction in
this hemisphere has essentially made it easier for Europe, Asia, and
Canada to significantly expand their exports throughout Latin America.
The European Union (EU), for example, is now Brazil's largest trading
partner. The EU's exports to Brazil have grown 255 percent from 1990 to
1998.
Additionally, during that same period, Asia experienced an incredible
1664 percent increase in its growth of exports to Argentina.
The next administration and the business community need to pay
attention to our own hemisphere. That means that the next
administration and the next Congress need to pass fast-track trading
authority and move toward a hemispheric free trade area. It is
imperative that we do this. That means that we will need to expand the
North American Free Trade Agreement, which, over this last decade, has
advanced economic cooperation and growth between the United States and
Mexico, increasing U.S. exports to Mexico by 207 percent. And, that
means that we must abandon this very narrow focus with which the
current administration has viewed trade policy and start widening the
lens to be more inclusive of the markets right here in our own
backyard. This is significant unfinished business that our next
President and our next Congress and the American people will have to
address.
But, even more significant in terms of our unfinished business are
the considerable national security issues at stake regarding our
overall relationship with China. I say that because this is China we
are talking about. China is different. China, as my colleagues all
know, is unlike any other country in the world. China is a major
power--a nuclear power--and China is the world's major proliferator of
weapons of mass destruction.
Sadly, this administration has failed to stop the Chinese
government's weapons proliferation. Sadly, this administration has not
demonstrated the kind of leadership necessary to prevent China from
manufacturing and selling weapons technology worldwide.
Like the United States, China is a co-signator of the Nuclear Non-
Proliferation Treaty, yet over the last decade, its government has
violated the Nuclear Non-Proliferation Treaty willingly, openly, and
egregiously. Their actions are well documented. For example, Washington
Times National Security reporter, Bill Gertz, writes in his recent
book:
[f]or at least a decade, China has routinely carried out
covert weapons and technology sales to the Middle East and
South Asia, despite hollow promises to the contrary.
The PRC has shown no remorse for its past actions--and certainly no
inclination to change them. Rather, China has flaunted--openly--its
violations.
At the beginning of the last decade, Pakistan was believed to possess
a very modest nuclear weapons program--one that was inferior to
India's program. Our own laws effectively banned U.S. government
assistance to Pakistan because of its decision to go nuclear, and our
sanctions laws contained tough penalties for any nation attempting to
feed Pakistan's nuclear hunger.
That was then. Today, China has single-handedly worked to change the
balance of power in South Asia and, in turn, has made the region far
more different and far more dangerous.
Today, according to news reports, Pakistan possesses more weapons
than India and has a better capability to deliver them. President
Clinton stated earlier this year that South Asia has now become the
most dangerous place in the world. We have China to thank for that.
The significant change in the balance of power between Pakistan and
India was engineered by China, which provided Pakistan with critical
technology to enrich and mold uranium, M-11 missile equipment and
technology, and expertise and equipment to enable Pakistan to have its
own missile production capability.
What has this Administration done to change this behavior?
Essentially nothing. Time after time, as reporters, like Bill Gertz,
uncovered extraordinary information on proliferation activities, this
Administration failed to impose even the mildest sanctions against
China as required by law. For example, in 1995, at the same time this
Administration was aware of China's transfer of sensitive nuclear
technology to Pakistan, the Administration was seeking to weaken our
non-proliferation laws against Pakistan. And, rather than aggressively
use the sanctions laws on the books to try to bring about a change in
China's behavior, this Administration sought to find ways to show it
had reached a common understanding with China to prohibit these
activities and thus avoid sanctions.
However, according to the Central Intelligence Agency's unclassified
bi-annual report to Congress on the proliferation of weapons of mass
destruction, China remained a ``key supplier'' last year of weapons and
missile assistance to Pakistan.
In the Middle East, it's the same story. News reports have documented
China's contributions to Iran's nuclear development and ballistic and
cruise missile programs, including anti-ship missiles that are a threat
to our naval presence and commercial shipping in the Persian Gulf.
Further, the CIA's bi-annual report also confirmed that Chinese
government multi-nationals are assisting the Libyan government in
building a more advanced missile program.
As it stands, international rules of conduct and pledges to our
government to forego its proliferation activity have not deterred
China's arms-building practices. Further, this administration has not
enforced U.S. non-proliferation laws adequately nor effectively. The
Chinese government certainly does not take our government seriously on
the question of weapons proliferation--and frankly, why should they?
The current Administration hasn't been a leader in encouraging nations
to honor international non-proliferation agreements. Consequently,
weapons of mass destruction are in more questionable hands than ever
before.
Last year, a bipartisan commission headed by former CIA Director,
John Deutch, concluded that our Federal Government is not equipped to
fight nuclear proliferation. What does that say about our international
credibility? What does that say about our ability to prevent the
proliferation of weapons of mass destruction? What it says is that our
diminished credibility may oblige other countries who are adversaries
of Pakistan, Iran, and Libya to build their own weapons capabilities to
counter these emerging threats.
In simple terms, the current administration has not led on these
proliferation issues. That is why we should have passed Senator
Thompson's amendment last week.
The Thompson amendment was important because it would have given us
the ability to hold the People's Republic of China, and any nation,
accountable for proliferating weapons of mass destruction and the means
to deliver them. The bottom line is that if we are
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going to sacrifice our annual review of normal trade relations with
China, then our next President and the next Congress will need new
tools to pursue our national security objectives. Candidly, the next
President will also have to use the tools that we have now given him.
So, where are we? When we put this whole debate in perspective--when
we put the debate into its proper economic and national security
contexts--where does this leave us? Realistically, approval of PNTR
does not change the disagreements we have with China on weapons
proliferation. It certainly will not change China's behavior. China
will continue to proliferate. China will continue to pursue policies
that will destabilize two critical regions of the world, placing our
soldiers and our allies in serious danger.
Now that we are about to pass this legislation--now that we are about
to advance our free trade policy--what do we intend to do to advance
our non-proliferation policy and our own national security? Does this
Administration have an answer? No, I do not think they do. Quite
candidly, they never have.
We need an answer. And, from the vantage point of our national
security strategy, I believe that if we fail to show vigilance in the
enforcement of non-proliferation policy, we will place this nation at a
terrible disadvantage. If we fail to show vigilance, we will
effectively continue a de facto policy that has worked to undermine our
national non-proliferation policy and is working to make our world a
more dangerous place.
Had this administration pursued a non-proliferation policy with the
same amount of intensity, creativity, and vigor it showed in advancing
our commercial relationship with China, this would have been a far
easier vote to cast.
Had the Senate done the right thing and adopted the Thompson
amendment, that too would have made today's vote easier to cast.
I fear if we do not act soon to change the current course of our
weapons proliferation policy--if we do not revisit the Thompson
amendment, and we will revisit the Thompson amendment--we will be
sending a signal to China and to the world that says our trade
interests are more important than the security of our Nation, more
important than the security of our children and grandchildren.
I intend to vote for the PNTR legislation before us because I believe
strongly in the power of fair and free trade.
The United States has been the world's most outspoken advocate for
free trade. We are the world's free trade leader. We believe free trade
is a cornerstone of a free society and a free people. We believe it can
be a step toward helping closed nations become open and democratic. No
one here can say with certainty that it will work in China, but as the
world's leader in free trade, I believe we have to try.
With this vote today, we are keeping our word as that leader, and we
are moving forward. To do otherwise, to go back on the agreement this
country negotiated last November, would send the wrong message to the
world. It would say that the United States cannot be counted on to
practice what we preach, and the implications of that message will
extend far beyond our ability to negotiate trade agreements with China.
A message such as that will affect our credibility worldwide.
Further, I have concluded that a ``no'' vote will do nothing to wean
China from its weapons-building addiction. But that is why we must not
stop here with today's vote. We should move forward and show clear
leadership and clear direction in regard to our nonproliferation
policy.
With this vote, I pledge to work with our next President to change
the current state of affairs and to work toward maintaining our place
as the world's model for free and fair trade. I will continue to push
for free trade opportunities, both within and beyond our hemisphere.
Much more important, I also pledge to work toward making our world a
safer and more secure place for our children, our grandchildren, and
our great grandchildren. I will continue to insist that China and other
weapons-proliferating nations abide by international agreements, and I
will continue to insist again, again, and again that our Nation take
the lead in this area.
This is not the last time I will be on this floor talking about the
problems with China. This Senate will regret if we do not return to
this issue. The Thompson amendment will come back, and we will insist
that it be voted on. This country has to stand strong and firm against
China and their proliferation policies. Their proliferation policies
threaten the security of our children and our grandchildren, and we
will ignore their actions at our peril.
I thank the Chair, and I thank my colleagues.
The PRESIDING OFFICER. The Senator from Washington is recognized for
up to 5 minutes.
Mr. MURRAY. Mr. President, I rise today to urge my Senate colleagues
on both sides of the aisle to grant Permanent Normal Trade Relations
status to China. This is about moving China in the right direction, and
in the process allowing America's workers to benefit from the massive
trade concessions we have won at the negotiating table.
This is a critical vote. China is home to one out of every five
people on the planet, and our relationship with China is important.
This vote can also have a positive impact on regional relationships
throughout Asia. That is because Taiwan and Asian nations like Japan
support China's accession to the World Trade Organization. They know
that China's engagement will be a positive development. If Congress
fails to grant PNTR to China, we will hinder our broader relationship
with that country, make it harder for us to promote change there, and
damage America's workers and industries as they compete with other
countries for a place in China's market. The Chinese have agreed to
radically open their market to U.S. goods and services. Chinese trade
concessions will benefit the United States across all economic sectors
in virtually every region of our country. And, the changes China has
committed itself to--in order to join the WTO--will further open China
to Western ideas.
I have come to the floor today to illustrate the ways that PNTR for
China will help our families, our industries, and our economy.
Washington State is the most trade-dependent State in our Union. The
people of my state--from aerospace workers to wheat farmers to
longshoremen--have urged me to make sure we take advantage of the
concessions we have won from the Chinese. If we do not, good-paying
family jobs will be lost, and our industries will be set back for
years.
Before I elaborate on the ways PNTR for China will help America's
workers, I must address many of the concerns we have about China. Over
the years, I, like my colleagues, have been frustrated by the actions
of the Chinese government on issues like human rights, religious
freedom and weapons proliferation. As I have listened to the debate it
is clear that we all want the same things: We want the people of China
to have more freedom and more opportunities, and we want to bring China
into the community of nations as a responsible partner. We all want the
same results. The question is: What is the best way to get there? It is
not to politicize our trade agreements. It is not to turn a trade vote
into a referendum on how we feel about China. That is why I oppose the
amendments that my colleagues have offered. These amendments will not
solve the problems they highlight.
Instead, they will kill the bill for this Congress and perhaps longer
and that will have a negative impact on our country. Killing this bill
will do serious harm to our efforts to impact change in China on many
issues. Killing this bill now will forever handicap U.S. exporters to
China. It will punish U.S. workers, and it will give our competitors
from Europe and Asia a massive head start as China opens its market to
the world.
As I have thought about our relationship with China, I think one of
the things that really frustrates us is that we are accustomed to quick
fixes. In our political culture, we expect to be able to fix problems
overnight. China, on the other hand, has a far different culture.
Throughout its 4000 year history, China has resisted outside
influences. As much as we would like to, we can't change China
overnight. But we can change China over time. PNTR gives us the vehicle
to help China move into the community of nations and to benefit
America's families, industries and economy in the process.
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Now that I have addressed the expectations and context surrounding
our relationship with China, I want to return to the question I posed a
moment ago: What is the best way to help China enter the community of
nations? The answer is to engage with China. In fact, our own history
has shown this to be true. Since 1980, when the United States
normalized relations with China, our engagement has helped to change
China for the better. I think it is useful to recall the history of how
different China is today, than it was just 20 years ago. Before we
normalized our relations, the Chinese people lived under the iron fist
of their government. They enjoyed virtually no personal freedoms. Their
jobs were predetermined. Their housing was assigned to them. Education,
medical care, and travel were all dictated by a government-controlled
system that rewarded blind loyalty to the state and harshly punished
all dissent. Externally, China was closed to the outside world.
Internally, China was hemorrhaging from the impact of the Cultural
Revolution and other political conflicts. U.S. engagement with China
has had a positive impact on that country. Certainly, we all want to
see more progress and more changes in Chinese government behavior. I
respect the concerns of my colleagues, but I recognize that we are
making progress by engaging with China. We should not let our specific
concerns override the many advantages that will flow to America's
workers by supporting PNTR for China.
After considering the cultural and historic issues that have factored
into this debate, I would like to focus on what this vote is about. The
question before the Senate is really quite simple. The United States
negotiated a trade deal with China. The agreement radically opens
China's market to American workers, forces China to end its unfair
practices, and gives the United States tough mechanisms to hold China
accountable. The question before the Senate is: do we want to take this
deal?
On behalf of my constituents and the American people, I will vote to
put these Chinese concessions--literally thousands of market-opening
concessions--to work for the benefit of our country. The Chinese
concessions are far reaching and will impact every sector of our
nation's economy and every region of our country. This agreement
radically slashes tariffs. In fact, for some of our most important
industries, it eliminates tariffs altogether. It preserves and in some
cases strengthens our trade laws on issues like dumping, export
controls, and the use of prison labor. China will no longer be able to
require firms to transfer technologies and jobs to China in exchange
for business. If China violates its commitments, it will have the 135
member countries of the WTO to contend with--rather than just the
United States. This is an opportunity to build a strong presence in the
world's largest emerging market just as it opens its doors to the
world.
The people of Washington State have a unique perspective on what this
trade agreement will mean for our families, our industries and our
economy. One of my predecessors, Senator Warren Magnusson, was one of
the first Senators to call for closer U.S.-China ties in the 1970s. For
more than 20 years, the entire period of China's most recent opening to
the outside world, no other state has been as engaged with China and
the Chinese people as extensively as my state has. Washington State is
the most trade dependent state in the country. Soon, one in three jobs
will rely on international trade. Our ports, rail yards, and airports
serve as gateways to and from the Pacific Rim for millions of products.
My entire state stands to gain a great deal from China's accession to
the WTO.
I would like to share with my colleagues how increased trade with
China will affect three important Washington industries: aerospace,
agriculture, and technology. Let me begin by talking about our
aerospace industry because Washington state produces the finest
commercial airplanes in the world. We are home to the Boeing Company,
and thousands of Washington families work for Boeing. As my colleagues
know, Boeing competes with Airbus, its European rival. But the playing
field isn't level. Airbus is subsidized by European states, and it gets
additional financing assistance, allowing Airbus customers to finance
aircraft on favorable terms. China is a huge new market for airplanes.
Aviation experts predict China will purchase 1,600 new commercial
airplanes worth $120 billion in the next 20 years. These sales will be
hotly contested. We know that Airbus is a very aggressive competitor in
the China market. Passing PNTR will give the workers in my state the
chance to compete in that marketplace. Thousands of Washington state
jobs--good family jobs, good union jobs--hang in the balance as Boeing
and Airbus fight for the China market. That is why organized labor at
Boeing, Local 751 of the International Association of Machinists and
Aerospace Workers, has publicly endorsed PNTR. The Boeing Machinists
know that if we do not compete for aircraft sales in China, we will
have ceded the largest marketplace in the world for commercial aircraft
outside of the United States. Such an outcome would be disastrous for
the future of our aerospace industry, and we're not just talking about
one company or one industry. Thousands of small businesses in
Washington state subcontract with Boeing. In addition, Boeing
subcontracts in every state in the union--creating the jobs that
working families rely on. Passage of PNTR will give Boeing and so many
other American companies the opportunity to compete freely and fairly
in China. I have every confidence that Boeing and the thousands of
Americans whose jobs are tied to aerospace will succeed in this new
environment. Mr. President, let me turn to another important industry
in my state.
Washington State is home to some of our country's finest agricultural
products from wheat to apples to a host of specialty crops. But we've
had trouble opening China's market to our exports. For more than 25
years, Washington wheat has been kept out of China by an unfair trade
barrier. This year, as China neared membership in the World Trade
Organization, it dropped its unfair trade barrier against wheat from
the Pacific Northwest. As a result, this year, Washington's first wheat
sale to China in 28 years recently sailed from the Port of Portland.
Thanks to PNTR and WTO accession, my constituents will have new
opportunities to feed China's population, which equals 20 percent of
the world's population. The opportunities are also great for another
major crop, Washington state apples. With this agreement,
China's market could open to an estimated $75 million a year in
business for Washington's apple growers. Overall, agriculture stands to
see one-third of its export growth tied to new sales to China.
Washington growers and producers will see new opportunities across the
board from pork, potatoes and barley to specialty crops like
raspberries, hops and asparagus. It is easy to see why the agriculture
community has been such a strong voice for this U.S.-China agreement
and PNTR. Agriculture has done a great job working to ensure members
understand that this agreement, and PNTR is vitally important to
American agriculture.
Finally I want to turn to America's high-tech industries. I am proud
that Washington State is home to Microsoft and other technology
companies including Nintendo, Real Networks, and Amazon.com. These
companies will benefit from new protections for U.S. intellectual
property. They will benefit from the elimination of high tech tariffs,
from anti-dumping protections, and from the right to import and
distribute goods free from government regulation and interference. The
Internet is taking hold in China. It holds immense potential for
changing China's society. Thanks to this agreement, Washington State
Internet companies will be aggressive competitors in this new market.
In addition, America's telecommunications companies will benefit as
well, including AT&T Wireless and VoiceStream Wireless, which are both
based in Washington State.
As I have shown, opening China's markets will help the thousands of
people in my state who work in the aerospace, agriculture and
technology industries. We should make sure America's workers have
access to the many benefits of China's marketplace. After 20 years of
normalized relations between the U.S. and China, now is the time to
pass PNTR. After 13 years of tough negotiations between the United
States and China, now is the time to
[[Page S8671]]
pass PNTR. And after more than 10 years of congressional consideration
of China's trade status, now is the time to pass PNTR. The Senate has
just spent two weeks debating PNTR, China's accession to the World
Trade Organization, and many other China issues. The heart of the
question before us is: Do we want American workers to benefit from the
enormous trade concessions we have won from the Chinese? I want America
to benefit, and I will vote for PNTR. At the same time, this is not our
final China vote. Congress has a very legitimate role to play in
helping shape our relationship with China and addressing our concerns.
I look forward to those debates and those opportunities to advance our
ideals in China. I encourage my colleagues to vote for PNTR, and I urge
my colleagues to continue to closely follow the important U.S.-China
relationship.
I yield the floor.
The PRESIDING OFFICER (Mr. Crapo). The Senator's time has expired.
The Senator from Nevada.
Mr. REID. Mr. President, I yield from Senator Daschle's time 10
minutes to Senator Hollings when Senator Lautenberg completes his 8
minutes. Senator Daschle has given Senator Lautenberg 3 minutes to his
5 minutes.
The PRESIDING OFFICER. The Senator from Vermont.
Mr. JEFFORDS. Mr. President, we have had an invigorating debate on a
very important and complex issue--whether to grant permanent normal
trade relations, PNTR, status to China. There are many aspects to this
debate: expansion and regulation of the international trading system;
realignment of the US position within that system; review of China's
internal policies--in particular its human rights record; assessment of
the prospect for constructive and systemic change in China; and the
effect of PNTR upon U.S. businesses and consumers.
As many of my colleagues may remember, 2 months ago in the Finance
Committee I cast the sole vote in opposition to granting PNTR to China.
Although I believe in engagement with China, not isolating China, I
felt strongly that I could not in good conscience vote to make this
status permanent at that time. I told my colleagues about Ngawang
Choephel, a Fulbright student from Middlebury College in Vermont, who
was arrested by Chinese authorities while filming traditional song and
dance in Tibet in 1995. Intent only on preserving traditional Tibetan
music, Ngawang was charged with espionage and sentenced to 18 years in
prison. I strongly protested his arrest and incarceration, together
with the other Members of the Vermont delegation, the administration,
and human rights supporters all over the world.
For 5 years, we received virtually no information on Ngawang's
whereabouts and his condition. In spite of a Chinese law guaranteeing
every prisoner the right to receive regular visits from next of kin,
Chinese officials ignored the repeated pleas from Ngawang's mother,
Sonam Dekyi, to visit him. During Finance Committee discussion of the
PNTR legislation, I made clear my anger over the Chinese Government's
unconscionable refusal to adhere to its own laws. I am pleased to
report that a couple weeks later, the Chinese Ambassador to the United
States called to inform me that Sonam Dekyi would be granted permission
to visit her son. I thank my many colleagues who raised this case with
the Chinese, and I particularly thank the Chinese Ambassador for his
efforts on Sonam Dekyi's behalf.
Last month, Sonam Dekyi and her brother traveled to China to see
Ngawang Choephel. They were treated very well and were allowed two
visits with Ngawang. In addition, they had a meeting with the doctors
at a nearby hospital who recently have treated Ngawang for several very
serious illnesses. While Sonam Dekyi was very appreciative of the
chance to see her son, she was disappointed to be granted only two
visits and quite saddened to be denied her request just to touch her
son after all these years. Most alarmingly, she found her son to be in
very poor health. Despite receiving medical attention, he is very gaunt
and reported ongoing pains in his chest and stomach. His mother fears
for his life.
I fervently hope that in the wake of his mother's visit, greater
attention will be paid to Ngawang's health, and that every effort will
be made by Chinese medical personnel to treat his illnesses. However, I
believe that the only solution to his health condition is medical
parole. Ngawang needs extensive treatment and considerable
rehabilitation. This cannot be accomplished under the harsh conditions
of prison, especially a Chinese prison.
On humanitarian grounds, I appeal to the Chinese authorities to
release Ngawang Choephel. This is the right thing to do, the decent
thing to do, the human thing to do. Until Ngawang Choephel is released,
I cannot in good conscience vote for PNTR. I urge the Chinese
authorities to recognize the length of time Ngawang has already spent
in prison and to move now before his 18 year sentence becomes a death
sentence. I urge the immediate release of Ngawang Choephel.
I have not come to this position of opposition to PNTR easily. For
the past 10 years, I have supported engagement with China and renewal
of most favored nation status. The benefits of international trade for
the Vermont economy are very clear, and Vermont businesses have proved
very resourceful at developing high paying and desirable jobs for
Vermonters. In 1989, in the wake of the Tiananmen Square uprising, this
was a particularly tough position. It was difficult to know how to
channel my profound outrage over Chinese behavior and how to bring
about the greatest degree of change in the shortest period of time.
After considerable research and much discussion with people holding
many points of view, I concluded that change in China would be most
rapid if the channels of communication were open to the rest of the
world. Engagement with China on all fronts, including economic
engagement, is going to be necessary to produce the long-term, systemic
change required for expression of personal freedom and personal
initiative.
The past decade has proven that change is slow and difficult. But
there is progress, nonetheless. The reformers in the Chinese hierarchy
are now pushing for membership in the World Trade Organization, WTO.
They wish to be part of the global trading system and to open their
country and their economy to international investment and influences.
While there are some significant problems with the WTO system that need
to be addressed, I am convinced that we must be a part of that system
and we must exert a strong influence on its development. Our national
interests are best served if all major economies are a part of this
system, agree to play by the same rules, and are subject to the same
enforcement mechanisms if they do not.
We have a very strong interest in encouraging diversification and
decentralization in the Chinese economy and greater freedom of
expression for Chinese citizens. The less citizens are dependent
directly on the government for their jobs and housing, the more likely
they are to get involved in local issues, to advocate for causes that
concern them, to develop advocacy and democracy at the grass roots. In
the long run, I believe this is also the best way to improve the human
rights situation. It will take time. It will be incremental. Chinese
society will never look just like American society, but hopefully it
will be reconfigured more to the advantage of the average Chinese
citizen.
Today, my overwhelming concern is for a young man who committed his
life to the preservation of his own musical heritage. He found shelter
in the green mountains of Vermont, even though his heart always lay in
the rugged mountains of his homeland. Ngawang touched many Vermonters
with his quiet manner and intensity of purpose. Vermont will not forget
Ngawang Choephel. I have not forgotten Ngawang Choephel. I will not
vote for PNTR until he is free.
Mr. President, I yield the floor.
Mr. LAUTENBERG addressed the Chair.
The PRESIDING OFFICER. The Senator from New Jersey.
Mr. WELLSTONE. Will my colleague yield for a moment?
Mr. LAUTENBERG. Sure.
Mr. WELLSTONE. Mr. President, I ask unanimous consent that in the
proper order of speakers, after Senator Lautenberg and Senator Hollings
and a Republican Senator are recognized to speak, I then be recognized
to speak for 10 minutes of my leader's time.
[[Page S8672]]
The PRESIDING OFFICER. Without objection, it is so ordered.
The Senator from New Jersey.
Mr. LAUTENBERG. Mr. President, the United States is now considering a
bill authorizing the President to grant Permanent Normal Trade
Relations to the People's Republic of China when that country joins the
World Trade Organization. This can radically improve our relationship
with the world's most populous country.
There is so much at stake, in my view. That is why I traveled last
month to China to meet with China's leadership and some of its people,
to see for myself what is happening in China, and to ensure that I make
a well-informed decision on this day.
Some of what I saw, quite frankly, disturbed me. But I also saw and
heard encouraging things that gave me hope about China's future. And I
have concluded that the best way to promote positive change in China is
to grant China permanent normal trade relations status.
Many Americans, including environmental activists and members of
organized labor and human rights groups, believe this vote is about far
more than trade. And I agree. We cannot consider trade policy without
understanding the implications for the economy, our society, and the
environment in America and the world.
Moreover, the granting of PNTR would eliminate the annual debate over
granting normal trade relations, which we used to call MFN, to China.
That annual debate allowed us to review all aspects of our relationship
with China and developments in that country. Successive administrations
and Congresses achieved progress on issues of importance to Americans
by raising them in the context of that annual review.
This time, however, we are not merely considering whether China has
made sufficient progress in economic, social, environmental and human
rights reforms to merit extending the opening of our market--China's
largest export market--for another year. Rather, we are considering
whether China is on a firm enough course of progress that we can
justify an act of faith and open our market permanently as China joins
the WTO and substantially opens its markets to American goods and
services.
That is why I traveled to China a few weeks ago, joined by my good
friend the Senator from Iowa, Senator Harkin.
I went so I could better understand China and raise my concerns with
China's leaders about human rights, labor conditions, national security
and the environment. I went to see for myself the condition of China's
cities and rural areas, to compare the wealthy coast and the
underdeveloped interior, to talk to garment workers and farmers, to
assess the extent of freedom of religion and freedom of speech, to
measure progress on human rights protection and environmental
protection, and to look into the proliferation of weapons and the
intimidation of Taiwan, to consider the abuse of power and the rule of
law.
China presented a very mixed picture. The patriotic Catholic Bishop
in Shanghai, Bishop Jin, expressed it well when he said, ``China is
very complicated.''
One thing was obvious: China is undergoing a tremendous
transformation as a result of Deng Xiaoping's 1978 decision to open
China to the world. The past two decades have seen the rise of free
enterprise and international trade, and many of the Chinese people have
experienced a dramatic improvement in their standard of living. China's
GDP growth, while surely lower than official estimates, has averaged
more than 6 percent over the past two decades and remains strong
despite the impact of the Asian financial crisis. China's economic
development is amazing, particularly in the modern city of Shanghai.
I would like to speak briefly about some of the issues I raised with
China's leaders and that will need to be addressed as we proceed in our
strengthened relationship with China.
We have to consider the national security aspects of the U.S.-China
relationship. The United States and China are not natural or historic
enemies. But serious problems and tensions exist.
One key issue is China's proliferation of technologies and materials
for missiles and weapons of mass destruction. Earlier this year, the
CIA reported on China's continuing missile-related aid to Pakistan,
Iran, North Korea and Libya, as well as nuclear cooperation with Iran
and contributions to Iran's chemical weapons program. These
relationships are not in China's interest and directly threaten U.S.
interests.
When I raised this issue, Vice Premier Qian Qichen acknowledged that
China provided missile assistance to Pakistan in the past but insisted
it had not done so in recent years. Premier Zhu Rongji dismissed my
concerns and demanded evidence of China's proliferation activities. Of
course, China has not accepted the key Annex to the Missile Technology
Control Regime. I hope China will acknowledge its past mistakes and
fully commit itself to international non-proliferation efforts.
U.S. officials have made progress in addressing Chinese proliferation
over the years. For example, they secured China's commitment not to
help Iran develop new nuclear projects. But we must do more.
The United States and China have a common interest in ending the
destabilizing proliferation of weapons of mass destruction and the
missiles to deliver them. We have to improve cooperation toward that
critical goal.
A second national security issue concerns Taiwan. Wang Daohan, the
Chinese official who conducts the Cross-Straits Dialogue for the
Mainland and influences China's policy toward Taiwan, stressed to us
that Beijing is willing to give Taiwan considerable autonomy if Taipei
accepts the ``One China'' policy and supports reunification. I am not
convinced that making Taipei's acceptance of the ``One China'' policy a
pre-condition for talks is a constructive approach.
I hope that China will withdraw its missiles that are only directed
at Taiwan, because these threaten an arms race over Taiwan. As I told
Mr. Wang, if you're extending a hand of peace it cannot be clenched
into an iron fist.
We also need to consider protection for human rights and the rule of
law in China. Fortunately, the House addressed these issues
constructively in the bill before us by providing for an annual review
of human rights in China. The bill before us also rightly authorizes
U.S. assistance for rule of law programs in China. I know that the Ford
Foundation and other private groups are supporting rule of law efforts
in China. We should be prepared to put some of our resources toward
achieving this worthy, if long-term, goal.
On the whole, we have to acknowledge that China has made some
progress on human rights, though it still has a long way to go.
The limited ability of the Chinese people to have freedom of religion
is a very real concern. The Chinese people, many of whom recognize the
vacuousness of Marxist and Maoist rhetoric, are unsatisfied with their
daily lives and seek a higher moral purpose, a spiritual side to life.
We saw some Chinese practicing recognized religions in permitted
places, but others are not so fortunate. Buddhists pray and burn
incense at a temple near the Great Buddha in Leshan. Catholics attend
Mass at patriotic Catholic Churches or in private homes used by the
underground Catholic Church. Muslims pray at the mosque in Xian. But
Muslims in Northwest China, who are not ethnically Chinese, cannot
worship freely.
Judaism is not a recognized religion, so it is illegal. Practitioners
of Falun Gong are arrested virtually every day when they do their
exercises on Tiananmen Square or in other public places. And no member
of any religion is allowed to proselytize freely, even though spreading
the word is a key element of many faiths.
While Senator Harkin and I did not have the opportunity to visit
Tibet, I remain concerned about efforts to suppress Tibetan culture and
religion. I hope the Chinese government will enter into dialogue with
the Dalai Lama--without preconditions--with the aim of allowing him to
return to Tibet as a spiritual leader.
So is there freedom of religion in China? I think a typical Chinese
answer might be ``Yes, within limits.''
Freedom of speech is similarly limited. Pre-publication censorship
through approved publishing houses ensures that the Chinese government
can review and approve the content of any published work. Some books
have been
[[Page S8673]]
banned, recalled and destroyed after publication because a senior party
member or official found them offensive.
During my visit to Beijing, I was pleased to hear Premier Zhu Rongji
commit to continued progress on human rights. However, much work still
needs to be done.
One of China's most egregious laws, under which people could be
jailed as ``counter-revolutionary,'' was repealed in 1997. But hundreds
or perhaps thousands of people sentenced under that statute remain
locked up.
Perhaps the worst element of China's totalitarian state and arbitrary
rule is the system of ``re-education through labor.'' Under this
system, people can be deprived of their freedom for up to three years
by the decision of a local police board--without ever being charged
with a crime, much less having a fair trial. While indications suggest
a change in the ``re-education'' system may be in the works, I hope
China will eliminate it entirely.
Further, I was disturbed by the Chinese government's efforts to
suppress dissenting voices. Our Chinese hosts refused to pursue our
request to meet with Bao Tong, a former government official imprisoned
for warning Tiananmen Square demonstrators of the impending crackdown,
saying it was ``too sensitive.''
We will not forget the crackdown on democracy protesters in Tiananmen
Square, nor will we sweep current human rights problems under the rug.
That is not the mission. I am hopeful that a renewed United States-
China relationship will yield better respect for human rights in China.
China's environmental policies are another serious concern. During
the discussions in Kyoto about the world's climate, China insisted that
only the U.S. and other developed countries should have to reduce
greenhouse gas emissions. But China is the fourth largest and the most
populous country in the world, so addressing global climate change will
demand China's participation.
I raised these concerns with China's senior leaders and later with
China's Environment Minister, Xie Zhenhua, at the State Environmental
Protection Administration. The reaction I got was decidedly mixed.
Minister Xie described China's concerted efforts to address
environmental problems. For example, China has reduced annual soft coal
production, and thus consumption, from 1.3 to 1.2 billion tons, with a
goal of a further reduction to 1 billion tons, to reduce sulfur dioxide
and particulate emissions and improve air quality. China is also
increasing use of natural gas and has taken steps to remove the worst-
polluting vehicles from the country's roads. However, Minister Xie then
launched into a diatribe, saying that the U.S. bears principal
responsibility for the degradation of the Earth's environment and that
China has a right to pollute so it can develop economically.
I certainly hope recognition of the importance of environmental
protection in China and global climate change will overcome the stale
rhetoric of the old North-South economic discussions, so the U.S.,
China and other countries can join together to address common concerns.
And I am hopeful that increased trade will foster more cooperation on
that issue, including sales of environmentally sound American
technology.
Many Americans are also rightly concerned about the working
conditions and the rights of Chinese workers, particularly since
American firms that follow American labor laws have to compete with
Chinese producers.
Certainly, migrant workers in southeastern China--including underage
workers--are exploited. And workers in China cannot meaningfully
organize to protect their interests. China has strong labor laws, but
enforcement is clearly lacking.
I visited a state-owned factory in Leshan, in Sichuan province, which
produces equipment for power generation. Workers using large machine
tools and working with large metal components had no protection for
their eyes or ears, no hard hats and no steel-toed boots, as would be
required in the U.S. Their work was clearly hard and dangerous, the
hours long and the pay meager.
I also visited a garment factory in Shenzhen, the Special Economic
Zone established 20 years ago near the border with Hong Kong. The
factory manager told me workers are usually on the job for 40 hours a
week, occasionally putting in overtime when the factory is busy.
Workers themselves meekly said they probably work about 12 hours a day.
But my staff looked through the rack of time cards near the door and
discovered that virtually all of these textile workers arrive before 8
a.m., take a short lunch break and clock out after 10 p.m.--working
nearly 14 hours a day, 7 days a week. And that earns them wages of 80
or 90 U.S. dollars per month, a bunk in a dormitory and meals.
The presence of American and other foreign investors and buyers can
make a huge difference.
Senator Harkin and I visited a factory near Shanghai that produces
clothing for Liz Claiborne. The company appeared to be making a real
effort to enforce fair labor association standards. We could see the
results in working conditions. For example, the factory was well-lit
and well-ventilated, even air-conditioned. Liz Claiborne's
interventions led to the construction of a fire escape, and the
workers' rights were clearly posted near the entrance. A Liz Claiborne
representative on site not only ensures the quality of the product but
also monitors compliance with China's labor laws limiting overtime
hours.
Unfortunately, not all American and other foreign firms are as
responsible. When I was in Hong Kong, the South China Morning Post had
a front-page story about child labor in a factory in Guandong Province
producing toys for McDonald's Happy Meals. Indeed, the toy industry is
probably the most notorious for looking the other way as its Chinese
suppliers exploit their workers. The bottom line is that trade with the
United States and U.S. investment does not automatically lead to better
working conditions and fairer treatment for Chinese workers. American
and other foreign companies need to make fair labor standards a real
condition of their business relationships.
So these are some of the problems I observed and concerns I raised in
China.
I come to the key question: Can we as a nation best make progress on
these issues by granting PNTR or by denying it?
Our annual reviews of Most Favored Nation treatment of China have
provided important leverage with Beijing. Congress reviewed issues of
importance to us, and members of the House and Senate and
Administration officials raised these concerns with Chinese officials.
Many times, China took significant steps to show progress, and arguably
future-oriented leaders used the opportunity to promote reforms. Under
H.R. 4444, a commission will still look at China's human rights record
and other concerns each year, but without the implicit leverage of a
vote on MFN.
Some have suggested we vote down PNTR to maintain our annual vote and
the associated leverage. After all, China will still be interested in
selling goods in the U.S. market, though we would not have access to
WTO rules and dispute settlement mechanisms.
However, voting down PNTR would not simply maintain the status quo.
Chinese leaders--and many Chinese citizens--see this debate on PNTR
legislation as a referendum on the U.S.-China relationship. Rejecting
PNTR means rejecting any hope of a cooperative relationship with China
in the near-term. And cooperation, too, has yielded important progress.
On the national security front, the U.S. and China have cooperated to
promote peace and reconciliation on the Korean Peninsula. And the WTO
contains a national security exception that will allow us to maintain
technological controls and other national security restrictions on
trade. On the human rights front, China has signed the International
Covenant on Civil and Political Rights, though the National People's
Congress has yet to ratify it. The presence of American firms willing
to forego some of their profits to treat workers decently has helped
raise standards of working conditions.
China is going to have access to the U.S. market regardless of how we
vote. If we grant PNTR to China, however, we will gain the benefit of
WTO dispute settlement mechanisms to better ensure China's commitment
to free trade. By granting PNTR, we do give up the right to review
China's trade status annually, but we can advance our agenda
[[Page S8674]]
on non-economic issues through increased dialogue, by bringing China
into multilateral agreements and institutions, and through stronger
bilateral cooperation.
Economically, I believe the world and the American and Chinese people
have a lot to gain by granting PNTR.
As I discussed earlier, China's economic growth over the past two
decades has been staggering, as a result of its opening to the world
some 20 years ago. China has risen to become the world's ninth largest
exporter and the eleventh largest importer.
In November 1999, we completed a landmark Bilateral Trade Agreement
with China, which is contingent on our approving PNTR. In that
agreement, China pledged to reduce tariffs on a number of imports. For
example, all tariffs on information technology products such as
semiconductors, telecommunications equipment, computers and computer
equipment are to be eliminated by 2005. Tariffs on industrial products
would decline from a simple average of 24.6 percent to 9.4 percent.
The agreement also opens China's markets in a wide range of services,
including banking, insurance, telecommunications, distribution,
professional services and other business services. China is expected to
join the WTO's Basic Telecommunications Agreement and end geographic
restrictions on wireless services and its ban on foreign investment in
telecommunication. Such changes are good not only for China but for
America.
But establishing Permanent Normal Trade Relations is something we can
do only once. Some economists have raised serious questions about
whether we have gained enough access to China's markets for goods and
services. Did USTR's negotiators get a good deal? I think that's a
difficult question to answer now. Our annual trade deficit with China
stands at a shocking $56.9 billion.
One key factor which will determine how good a deal we got is
compliance. How well will China fulfill its obligations? Through
China's WTO accession and the establishment of PNTR, we will be able to
hold China accountable for its trade commitments through the WTO's
transparent, rules-based dispute settlement mechanisms. If China
arbitrarily increases a tariff on an American product or engages in
retaliatory actions against the U.S., we could seek redress under WTO
regulations.
How effectively will we monitor compliance and use these mechanisms
and our trade laws to bring China's laws and practices into line? This
is a very serious question. China is a large country--nearly the size
of the United States--and the application of national laws is grossly
inconsistent across the country. Moreover, U.S. firms doing business
there seem to understand their immense reliance on the goodwill of
China's government and Communist Party. Will these firms be willing to
risk a deal in Guangzhou by asking USTR to pursue action against
arbitrary and discriminatory treatment in Inner Mongolia? Or will
American firms continue to emphasize cooperation with Chinese
authorities?
This bill rightly stresses the need for the U.S. government to
monitor China's compliance with its trade obligations and use the WTO's
dispute settlement mechanisms. But if we fail to grant PNTR for China,
WTO dispute mechanisms will not be available to us.
Mr. President, China is already America's fourth largest trading
partner. According to administration statistics, American exports to
China and Hong Kong support an estimated 400,000 well-paying U.S. jobs.
China's WTO accession and the 1999 bilateral agreement will further
open China's markets to American goods and services and protects
American intellectual property rights. I believe will prove to be a
good deal for America's working families.
New Jersey undoubtedly stands to benefit from China's accession to
the WTO and improved market access. At the end of 1998, China ranked as
New Jersey's ninth largest export destination, with merchandise exports
worth $668 million. Important New Jersey firms, such as Lucent
Technologies and Chubb Insurance, are already active in China and will
have more opportunities as a result of China's market opening under the
1999 bilateral trade deal.
Mr. President, there are some potential risks in granting permanent
normal trade relations to China now. While I have concerns about
China's record in the areas I have outlined, I believe that China is
undergoing momentous change. The best way to promote continued progress
on issues of concern and help our economy is to grant China permanent
normal trade relations status.
The PRESIDING OFFICER. The Senator from South Carolina.
Mr. HOLLINGS. Mr. President, one would think from the comments made
by my distinguished friend from New Jersey and others that the issue
was the welfare and benefit of the People's Republic of China. I have
no particular gripe at this moment about China. I think, as the Senator
from New Jersey pointed out, it is working. China has a very
competitive trade policy. They are making improvements industrially,
economically, even environmentally, and perhaps with labor standards.
That is not the issue.
The issue is the viable, competitive trade policy of the United
States of America. You would think that we had the finest, most
wonderfully competitive trade policy there could be. The fact is, we
have a $350 billion trade deficit that we know of, and this year, 2000,
it is going to approximate $400 billion.
Last month, the Department of Commerce announced we had lost 69,000
manufacturing jobs. The fact is, we have gone from the end of World War
II, with some 42 percent of our workforce in manufacturing, down to 12
percent.
As the head of Sony--the Japanese just beat us in softball last
night, and they are beating us in trade--as the head of Sony, Akio
Morita, said, that world power that loses its manufacturing capacity
will cease to be a world power.
We hear high tech, high tech. They are running around here as if they
have discovered something. Senator, you don't understand global
competition, they say. We have high tech. We want to get away from the
smokestack jobs to the high-tech jobs.
Let me say a word about that. I know something about both. I have
both. I would much rather have BMW than Oracle or Microsoft. Why do I
say that? BMW is paying $21 an hour. A third of Microsoft's workers are
paid $10 an hour, part time, temporary workers, Silicon Valley. Forty-
two percent of the workers in Silicon Valley are part-time, temporary
workers. I am not looking for temporary jobs. I am looking for hardcore
middle America jobs.
That is the competition. The competition in global competition is
market share and jobs. We treat foreign trade as foreign aid. Free
trade, free trade. They say: You don't understand high tech. The truth
is, we have a deficit in the balance of trade in advanced technology
products with the People's Republic of China. Last year, it was $3.2
billion. It will approximate $5 billion this year.
But Senator, agriculture. Agriculture? There is a glut of agriculture
in the People's Republic. Once they solve their transportation and
distribution problems, they are not only going to feed the 1.3 billion,
but the rest of the world. Come now, the 800 million farmers they have
at the moment can certainly outproduce the 3.5 million farmers we have
in America.
We had a deficit in the balance of trade of $218 million last year
with the People's Republic of China. People don't understand where we
are. I have a deficit in the balance of trade of cotton. I am importing
cotton from the People's Republic of China.
They say: Wait a minute, what about the airplanes? Well, yes, they
have orders for 1,600, we just heard a minute ago. We will cut that in
half. That is really 800, because 50 percent, according to Bill Greider
of the 777 Boeing plane, is going to be made in downtown Shanghai. The
MD 3010, 70 percent of that aircraft is made in the People's Republic
of China. So what are we doing? Are we transferring all of the
wonderful middle-class American jobs to China? And we are running all
over the country hollering, ``I am for the working families, I am for
the working families,'' when, since NAFTA, they have eliminated 30,700
working families in my little State of South Carolina. We lost over
500,000 over the Nation. So we are eliminating working families, and we
say, ``But China is going to
[[Page S8675]]
really start enforcing and adhering and be made accountable.'' Not at
all.
Japan is not. Incidentally, Japan has been in the WTO for 5 years and
it hasn't opened up yet. I don't know where they get the idea that once
we get this particular agreement and China in the WTO, it is going to
open its market. That doesn't open markets. Otherwise accountable? The
People's Republic see what happened with the United States and Japan
and with the United States and the United Kingdom. The President was up
in New York the week before last with Prime Minister Blair, and the
Prime Minister is fighting for a thousand jobs, and the President of
the United States is exporting them like gang busters and fighting for
bananas that we don't even produce. Fighting for bananas. Come on. When
are we going to sober up and get a competitive trade policy?
For a second, I don't have the idea that we ought to cut off trade;
that is ridiculous because it is impossible. We are going to trade with
China. I just want to cut the word ``permanent'' out and have a look-
see and try to get organized a trade policy whereby we can correlate 20
different departments and agencies, our Department of Commerce and
Trade, and start really competing in a controlled global economy.
The fight there, of course, as I see it, is for market share. The
fight is for jobs. We are not doing it. I guess my time is pretty well
limited.
Alexander Hamilton enunciated the competitive trade policy of the
People's Republic of China in 1789. The first was for the Seal of the
United States. The second bill that passed this Congress in July 1789
was a 50-percent tariff on 60 articles. Protectionism. We learn how to
build up. The Brits suggested to us that we trade with them what we
produce best and they trade back what they produce best. Free trade,
free trade. Hamilton, in his writing ``Report on Manufacturers,'' told
the Brits: Bug off, we are not going to remain your colony, exporting
our raw materials, our agriculture, our timber, our iron ore, and
importing your manufactured products. And therein is the policy of the
People's Republic of China. I welcome it. I welcome the competition.
But you can't find it here in the Congress. You can't find it in the
Presidential race.
You would think we had a good policy of some kind. Nothing on the
floor. People are coming up here, like myself, reciting their little
positions, with no debate. Somebody said ``invigorating debate.'' They
couldn't care less. This vote has been fixed. This thing has been fixed
since midsummer. You know it and I know it. They will give you time.
There is nobody seated on the other side. Let the Record show that.
Absolutely nobody is in a chair on the Republican side of the Senate as
I speak.
I yield the floor.
The PRESIDING OFFICER. The Senator from Minnesota is recognized.
Mr. WELLSTONE. I ask my colleague--I have 10 minutes reserved--if my
colleague from Illinois needs to speak----
Mr. DURBIN. Mr. President, I make the following unanimous consent
request. I understand 6 minutes is left of the Democratic leader's
time. Senator Wellstone asked for 10 minutes. I ask unanimous consent
to follow Senator Wellstone and to speak for 6 minutes on the
Democratic leader's time, unless a Republican Member comes to the
floor, at which point I will yield to them to speak.
The PRESIDING OFFICER. Without objection, it is so ordered.
The Senator from Minnesota is recognized.
Mr. WELLSTONE. Mr. President, I thank my colleague, Senator Hollings
from South Carolina, for his remarks. Let me say to my colleague from
South Carolina, I can't imagine the Senate without Senator Hollings--
the color, the power of the oratory and, frankly, being willing to
stand by the courage of his convictions. He is a great Senator.
Mr. HOLLINGS. The Senator is too kind. I thank the Senator from
Minnesota.
Mr. WELLSTONE. Mr. President, I want to include this in the Record
today.
I ask unanimous consent that this article be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
[From the Washington Post, Sept. 19, 2000]
Catholic `Criminals' in China
The Communist regime in China has identified and rooted out
another enemy of the state: 81-year-old Catholic Bishop Zeng
Jingmu. The Cardinal Kung Foundation, a U.S.-based advocate
for the Roman Catholic Church and its estimated 10 million
followers in China, reports that Bishop Zeng was nabbed last
Thursday. An embassy spokesman here said he could't comment.
This wouldn't be a first for this apparently dangerous
cleric. He was imprisoned for a quarter-century beginning in
1958. In 1983, the Communists let him out--for one month. The
they jailed him for another eight years, until 1991. In
1996--at the age of 76--he was sentenced to three years of
forced labor and reeducation. When he was released with six
months still to run on that sentence, in 1998, the Clinton
administration trumpted the news as ``further evidence that
the president's policy of engagement works.'' The fatuousness
of that statement must be especially clear to the bishop from
his current jail cell.
Bishop Zeng has been guilty of a single crime all along: He
is a Catholic believer. He refuses to submit to Communist
atheism or to the control of the Catholic Patriotic
Association, an alternative ``church'' created by the regime
that does not recognize the primacy of the pope. China's
government is willing to tolerate some religious expression
as long as it is dictated by the government. Anyone who will
not submit--whether spiritual movements such as Falun Gong,
evangelical Protestant churches, Tibetan monasteries or the
real Catholic Church--is subject to ``repression and abuse,''
the State Department said in its recent report on
international religious freedom. The admirably straighforward
report noted that respect for religious freedom
``deteriorated markedly'' in China during the past year.
``Some places of worship were destroyed,'' it said. ``Leaders
of unauthorized groups are often the targets of harassment,
interrogations, detention and physical abuse.''
Bishop Zeng is a man of uncommon courage, but his fate in
China is sadly common. Three days before his arrest, Father
Ye Gong Feng, 82 was arrested and ``tortured to
unconsciousness,'' the Cardinal Kung Foundation reports. It
took 70 policemen to perform that operation. Father Lin
Rengui of Fujian province ``was beaten so savagely that he
vomited blood.'' Thousands of Falun Gong practitioners have
been arrested during the past year; the State Department
cites ``credible reports'' that at least 24 have died while
in police custody.
Last month the Chinese government launched a public
relations mission to the United States, dispatching exhibits,
performers and lecturers--on the subject of religious
freedom, among others--on a three-week charm offensive.
``American voters should get to know us,'' said the Chinese
functionary in charge. The U.S. ambassador to China, Joseph
Prueher, appeared at a joint news conference announcing the
mission, and a number of U.S. business executives--from
Boeing. Time Warner and elsewhere--happily sponsored it. We
have nothing against goodwill cultural exchanges, but Chinese
and American officials should not delude themselves that U.S.
suspicions are caused chiefly by prejudice or lack of
understanding. On the contrary, Americans understand just
fine what kind of government throws 81-year-old clerics into
jail.
Mr. WELLSTONE. Mr. President, this is all so timely. In this
Washington Post article, the lead editorial is: ``Catholic `Criminals'
in China.''
The first sentence reads:
The Communist regime in China has identified and rooted out
another enemy of the state: 81-year-old Catholic Bishop Zeng
Jingmu.
. . . Bishop Zeng was nabbed last Thursday.
He spent a good many years in prison.
. . . Bishop Zeng has been guilty of a single crime all
along: He is a Catholic believer.
Bishop Zeng was picked up last week and is now imprisoned again. I
quote again from the editorial:
. . . Bishop Zeng has been guilty of a single crime all
along: He is a Catholic believer.
Mr. President, every Senator should read this editorial today before
they vote. I came to the floor of the Senate with an amendment. It
merits a report from a commission we had established, to report back to
us, a Commission on Religious Freedom, chaired by David Sapperstein.
The commission looked at the situation in China and it made a
recommendation to us. The commission's recommendation was, right now in
China, as evidenced by what happened to this Catholic bishop, an 81-
year-old bishop imprisoned for being a Catholic, that it is a brutal
atmosphere and we in the Senate and the House of Representatives ought
to at least reserve for ourselves the right to annually review trade
relations with China so we can have some leverage to speak out on human
rights. That amendment lost.
[[Page S8676]]
I brought another amendment to the floor. I said based upon China's
agreement with the United States in 1991, a memorandum of
understanding, and then another agreement in 1993, which the President
used as evidence that we would delink human rights with trade policy
with China, we should call on China to live up to its agreement that it
would not export to this country products made by prison labor. Many of
these people are in prison because they have spoken out for democracy
and human rights. That amendment lost.
I brought another amendment to the floor of the Senate, which was an
amendment that said men and women in China should have the right to
organize and bargain collectively; they should be able to form an
independent union. I cited as evidence Kathy Lee and Wal-Mart paying 8
cents an hour from 8 in the morning until 10 at night--mainly to young
women. They get 1 day off a month. I said shouldn't we at least say we
want to extend the right to annually review trade relations until China
lives up to this standard? That amendment lost.
Then I offered an amendment with Senator Helms from North Carolina, a
broad human rights amendment, citing one human rights report after
another saying that China needed to live up to the basic standard of
decency when it comes to respecting the human rights of its people.
That is a sacred issue to me--anywhere in the world. That amendment
lost.
I want to conclude my remarks on the floor of the Senate in three
ways. First, I hope I am wrong, but I believe we will deeply regret the
stampede to pass this legislation and the way in which we have taken
all the human rights, religious freedom, right to organize, all of
those concerns, and we have put them in parentheses and in brackets as
if they don't exist and are not important. I think we will regret that.
I think we will regret that because if we truly understand the
implications of living in an international economy, it means this.
It means that if we care about human rights, we have to care about
human rights in every country. If we care about the environment--not
just in our country--if we care about the right to organize--not just
in our country--if we care about deplorable child labor conditions, we
have to be concerned about that in every country. When we as the Senate
and as Senators do not speak out on human rights, we are all
diminished. When we have not spoken out on human rights in China, I
think our silence is a betrayal.
I will make two other final points.
I have heard my colleagues argue ``exports, exports.'' I have spoken
plenty about this legislation, and I will not repeat everything I said
but just to say I think the evidence is pretty clear. Not more exports
but more investment--there is a difference.
I think what will happen is China will become the largest export
platform with low-wage labor under deplorable working conditions
exporting products abroad, including to our country, and our workers
will lose their jobs. Frankly, we will be talking about not raising the
living standard of working people but lowering the living standard.
On agriculture, I think there was a piece in the New York Times on
Sunday. Every day there is an article in the newspaper about China. It
is not a pretty picture. It is as if many of my colleagues want to turn
their gaze away from the glut in production--about the protests, about
people being arrested for the protests.
Frankly, as to the argument that we are going to have many more
exports to China and that is going to be the salvation of family
farmers--the President of the United States came out to Minnesota and
basically made that argument--we can have different views about human
rights and whether or not there will be more respect for human rights
as we have more economic trade relations in China, but so far that is
not the evidence. I can understand how people honestly disagree. I
don't believe that most-favored-nation status or normal trade relations
with China is the salvation of family farmers for this country.
I want my words in this debate to be heard. I want to stick by these
words, and I want to be held accountable. I want every other colleague
who has made such a claim, that this will be the salvation for our
family farmers in this country, to also be held accountable.
Finally, I say to Senators that I believe we will lose this. And
people in good conscience have different viewpoints. I can't help
speaking with some strong feeling at the end of this debate to say
this: I will look at this debate and vote with a sense of history. One-
hundred years ago, our economy was changing. We were moving to a
national economy--industrialized national economy. You had farmers,
laborers, religious communities, populists, and women. And they made a
set of standards. They wanted an 8-hour day. They wanted to abolish
some of the worst child labor conditions--antitrust action; women
wanted the right to vote; direct election of U.S. Senators. They wanted
the right to organize and bargain collectively. The Pinkertons were
killing labor organizers. The media were hostile. Money dominated
politics. But many of those demands became the law of the land over the
years and made our country better. So it is today. This is the new
economy. It is an emerging global economy.
What we were saying is we want to civilize the global economy and
make it work--not just the large conglomerates. We want this new global
economy to work for the environment; to work for family farmers and
producers; to work for human rights; to work for religious freedom; to
work for workers. That is what this debate has been about.
I think this will become where you stand in relation to this new
global economy. I think it can become some kind of axis of American
politics over the next 5, 6, 7, 8, or 9 years to come.
I am proud to stand for human rights. I am proud to stand for
religious freedom. I am proud to stand for the right of people to
organize. I am proud to stand for an international economy but an
international economy that is based upon some standard of decency and
fairness.
I yield the floor.
The PRESIDING OFFICER. The Senator from Nevada.
Mr. REID. Mr. President, on behalf of the leader, Senator Daschle, I
yield 30 minutes to Senator Byrd, 5 minutes to Senator Baucus, and 15
minutes to Senator Moynihan. I say to my Democratic colleagues, that is
all the time we have. Senators shouldn't ask for an extension of time
because there is no more time on the Democratic side.
The PRESIDING OFFICER. The Senator from Illinois.
Mr. DURBIN. Thank you, Mr. President.
I asked for 6 minutes. Was that calculated?
Mr. REID. Yes. I understood that had also been granted. If not, I
grant 6 minutes.
Mr. DURBIN. Thank you very much.
Mr. President, I rise today in support of Permanent Normal Trade
Relations with China. Today the United States Senate will vote to grant
PNTR to China and its 1.2 billion people. We will decide whether or not
to allow American farmers, manufacturers, businessmen and women to
trade their products, their ideas, their goods with one-fifth of the
world's population.
Last November, after more than a decade of negotiations, the Clinton
Administration signed a bilateral agreement that will drastically
reduce barriers on American products and services going to China. The
agreement is clearly in the best interests of our nation's farmers,
manufacturers, and workers. Supporting China's entry into the WTO is
clearly in the best interests of our economy, national security and
foreign policy.
Trade is the future. Make no mistake about it: trade can open up the
exchange of ideas--ideas like democracy, freedom of speech, freedom to
worship, and freedom of association. China stands on the brink of
becoming the most important trading partner the U.S. has ever seen and
the U.S. Senate will go on record in support of this important step in
international trade and foreign policy.
When China concludes similar agreements with other countries, it will
join the WTO. For us to benefit though, we must grant China PNTR
status--the same status we have given other countries in the WTO. And,
Mr. President, that's what this debate is about. Do we give China the
same status as the other countries already in the WTO? Do we put them
in an environment where
[[Page S8677]]
they will have to follow the rules and be held accountable if they
break them?
Many of my colleagues have come to the floor of the United States
Senate over the last several weeks to offer amendments to this
legislation. They've all been defeated, with my help, despite the fact
that I agree with the intention of almost everyone of them. I voted
against every amendment offered because I know and the American people
watching this debate know that amending H.R. 4444, at this point in the
process is a death knell.
We defeated goodfaith amendments like Senator Thompson's non-
proliferation amendment, Senator Wellstone's religious freedom and
right to organize amendments, and Senator Helms' amendment regarding
forced abortions. I agree with the intent of my colleagues. China
should not engage in the proliferation of nuclear technology. China
should not prevent workers from organizing. China should not force
women to adhere to any type of ``one family, one child'' policy.
But, the bill we're debating is a trade bill. And if it's changed in
any way, shape, or form, it will go back to the House of
Representatives and die.
My friend in the House of Representatives, Rep. Sander Levin,
successfully added language to the House-passed legislation that, I
believe, holds China accountable. The Levin/Bereuter language
establishes a formal Congressional-Executive Commission on China to
institutionalize mechanisms for maintaining pressure on China to
improve its human rights record, increase compliance with basic labor
standards, and abide by current and future commitments. This commission
would review and report on China's progress in these areas and make
recommendations to the Administration and Congress. My friends who
offered amendments regarding human rights on the floor of the Senate
will be able in the future to review China's record in this important
area.
The Levin proposal would also push for more transparency at the WTO,
including urging prompt public release of all litigation-related
documents and the opening of secret meetings of the dispute settlement
panels. The United States pays dues to the WTO and we have a right to
know what goes on in those meetings. I've heard over and over again
about the secrecy of the WTO. It's time for the WTO to shed some light
on what really happens in these meetings that affect real American
workers, so that workers will be able to see that we can rely on their
rules-based trading system for relief when and if it's needed.
The Levin-Bereuter proposal empowers the Congress by seeking
special congressional review of U.S. participation in the WTO two years
after China's accession, to assess China's implementation of WTO
commitments. We'll have the power to see just how well China is abiding
by its commitments.
And finally, the legislation expresses congressional support for
Taiwan's accession to the WTO immediately after China's accession.
While the Chinese aren't happy about this provision, I believe that
it's important to allow Taiwan the same trading rights as mainland
China.
America began as an agrarian nation, then transformed itself into an
industrial power, and now over 200 years later, we're the leading
economy in the world due, in part, to our ability to recognize that
competition can force a country or a company to excel or fail. America
has never feared competition.
And it's a reality that global competition is here and it's here to
stay. Opponents argue that we must stop globalization, that we must
punish the Chinese for all their human rights abuses, for prison labor
abuses, for Tiananmen Square. Every year, we vote on whether or not to
grant NTR status to China. Throughout my time in the House and Senate,
I've voted both for and against NTR. Every year, we take a look at how
China treats its citizens, wondering whether or not our annual review
of their trade status would change their behavior.
Many say that the Congress shouldn't give up that right to annual
review--that if we annually examine how the Chinese treat their people,
and based upon that, deny or give them preferred trading status,
somehow they will clean up their act and guarantee every Chinese
citizen basic human rights. It's time we changed our approach. It's
time to bring democracy to China via the Internet, via U.S./Chinese
commerce relationships, via other U.S. products. It's time to bring
social progress to China, not with messages from Congress but messages
from across America, from businesses, labor traders, educators with new
access to a society too often closed to diverse opinion.
President Clinton noted recently that ``In the new century, liberty
will spread by cell phone and cable modem.'' Take a look at America
with access to the Internet and now think back to the days when access
to world knowledge was only through the printed media. America is a
different nation because of this progress and China has the potential
to change too.
Think for a moment about what would happen if we denied PNTR to
China. I believe that if we sent that signal to the Chinese people, the
walls of isolation would be strengthened. The hardline Communists would
be emboldened more so than before. If we vote against PNTR, Beijing
won't free a single prisoner. They will turn inward and the limited
freedoms the Chinese people currently enjoy could well disappear.
And this argument ignores our experience with the Soviet Union during
the height of the Cold War. We spent trillions of dollars to oppose a
regime that was rife with human rights abuses, yet we still sold them,
in the words of the late Hubert Humphrey, ``just about anything they
could not shoot at us.''
China will enter the WTO, with or without our support. The questions
is: will America benefit from it or will the Chinese buy products and
services from the Europeans or the Canadians or the Mexicans? To me,
it's a clear choice: Americans will benefit from free and fair trade
with China. And China will change for the better as it opens its doors
to the world.
What about Illinoisans? How will farmers from Peoria and Cairo
benefit from this action? How will major Illinois-based U.S.
corporations like Motorola and Caterpillar and Bank of America and the
thousands of Americans they employ benefit from this agreement?
The average tariff for agriculture products will be 17.5 percent and,
for U.S. priority products, 14 percent, down from 31 percent. Farmers
in downstate Illinois, will benefit from this; there's no doubt about
it. At present, China severely restricts trading rights and the ability
to own and operate distribution networks. For the first time, Illinois
exporters will have the right to distribute products without going
through a State Owned Enterprise. Illinois is already a significant
exporter of farm and industrial goods. In 1999, Illinois exported $9.3
billion worth of industrial/agriculture machinery. We shipped just over
$6 billion in electric equipment as well. Illinois farmers exported
roughly $3 billion in commodities to other countries. Illinois exports
in 1999 totaled over $33 billion. Of that, $850 million was sold to
China.
Companies like Motorola (with over 25,000 employees in Illinois)
which pays tariffs of 20 percent on pagers and 12 percent for phones,
will see those tariffs slashed. The Illinois soybean farmer will see
the tariff-rate quotas completely eliminated.
Banks will be able to conduct business in China within the first two
years of accession. They will have the same rights as Chinese banks.
Geographic and customer restrictions will be lifted in five years,
thereby allowing them to open a branch anywhere in China, just like
they can here. U.S. automakers, like the Chrysler plant in Belvedere,
Illinois, will see tariffs on their products slashed from 100 percent
to 25 percent.
Pike County, Illinois pork producers will be able, for the first
time, to export pork to China. Under the current scheme, China's import
barriers have effectively denied access to American pork products.
We're talking tariffs in the range of 20 percent that will drop to 12
percent by 2004.
What about Illinois steelworkers, still reeling from the 1998 steel
crisis? China will reduce its tariffs on steel and steel products from
the current average of 10.3 percent to 6 percent. They've agreed that
any entity, like Acme Steel with facilities in Riverdale and Chicago or
Northwestern Wire and
[[Page S8678]]
Rod in Sterling, will be able to export into any part of China, phased
in over 3 years.
Peoria-based Caterpillar, with almost 30,000 Illinois employees, has
recently invested in several new facilities in China. They've also
recently announced the sale of 18 new trucks to the Shanghai Coal
Company, trucks that will be made in Decatur, Illinois, and shipped
halfway around the world. This is the type of investment by Caterpillar
that maintains local jobs throughout towns and cities across Illinois.
Of course, many of these are big corporations. What about small
businesses? How will they benefit from this agreement?
In 1997, 82 percent of all U.S. exporters were small businesses,
generating over 35 percent of total merchandise exported to the East.
Paperwork burdens for America's small businesses will be reduced
drastically as customs and licensing procedures will be simplified.
America's small businesses don't export jobs to China. They export
ideas and products to a people who need and want their products and
services.
No one expects this trade agreement and our future relationship with
China to be easy. Already, Beijing officials have begun backtracking on
several of their commitments made last November. I understand that at
the most recent session of the WTO Working Party on China's accession,
China objected to having its implementation of trade obligations
reviewed every other year. A Chinese proposal dated July 14th strikes
language in the protocol referring to bi-annual reviews and replaces it
with language providing for reviews every four years. Their rationale
is that they're a ``developing'' country.
This is absolutely unacceptable. The fact is, China is not a
typically developing country and it shouldn't be allowed to cloak
itself in that status. It's a uniquely large country and economy, where
the essential elements of a market economy are taking root. Four years
is far too long a time between reviews of China's implementation. If
this proposal were adopted, it would make WTO dispute settlement the
only formal channel by which we could ensure China's fulfillment of its
trade obligations. Just one example: if China automatically received
developing country status, it would receive special treatment like
allowable export subsidies that wouldn't be treated as subsidies. If
the Chinese flooded the U.S. market with steel (as is the case now),
the U.S. steel industry wouldn't be able to use U.S. countervailing
duty trade laws because that law doesn't apply to subsidization for
developing countries. There are other areas where the Chinese would
like to backpedal. But, Mr. President, we must hold them to the
November agreement and discourage future backtracking of that agreement
by Chinese trade officials. Any unwillingness by the Chinese to abide
by this agreement at this point should be roundly condemned by this
Administration and other foreign nations, who just might find the
Chinese backtracking with them as well.
Trade with foreign countries means nothing if it's not carried out
under a rules-based system. Trade commitments require full enforcement
to have meaning. With China's WTO membership, we will gain a number of
advantages in enforcement we do not currently enjoy.
First, there is the WTO dispute mechanism itself. Remember that China
has never agreed to subject its decisions to impartial review,
judgment, and possible sanctions if necessary. That will now happen.
Second, we will continue to have the right to use the full range of
American trade laws, including Section 301 and our Anti-dumping/
Countervailing Duty laws. It's important, though, to have an
administration that will use these trade laws effectively. It's my hope
that the next President will not hesitate to bring cases against China
and other countries if they break our trade laws.
And finally, we strengthen our enforcement capabilities through the
multilateral nature of the WTO. In effect, China will be subject to
enforcement by all 135 WTO member nations, thus limiting their ability
to play its trading partners against one another. The U.S. won't be
alone if China breaks the rules.
Opponents of PNTR argue that it's NAFTA all over again. You'll
remember Ross Perot's soundbite: ``That great sucking sound.'' You'll
remember that some said the American economy would go down the tubes,
that hundreds of thousands of American workers would lose their jobs to
cheap labor in Mexico if NAFTA were enacted.
Here's Illinois' story. Gross jobs added in export industries from
1993-1998 totaled over 60,000. Net jobs totaled almost 40,000. There
was no great sucking sound. US unemployment is still low. There are
more people employed in Illinois right now than at any time in its
history. The Illinois Department of Commerce estimates that nearly half
a million jobs are supported by exports and that there's been a 51.6
percent increase in Illinois jobs sustained by exports since enactment
of NAFTA.
Yes, some folks have lost their jobs due to trade. The Department of
Labor certified 50 Trade Adjustment Assistance cases in Illinois from
1994-1999, totaling 5,718 jobs lost. Frankly, losing 5,718 jobs is
still too many. When workers lose their jobs, we should do more than
just provide TAA. We should find ways to train our workers in emerging
fields and industries so they get new jobs that are at least as good as
the ones they lost. That's the responsibility of the American business
community, educators, and federal, state, and local governments. This
is the best opportunity we've had in years to export American ideals
and products. We should also ensure we don't export American jobs.
Worker re-training is one of the most important debates that this
Congress should focus on. Today, we voted on a cloture motion on H1B
visas. I have almost 6,000 Illinoisans who've lost their jobs due to
trade, yet we have to import workers from foreign countries because we
have industries begging for skilled workers to show up for that 9-5
job. Yet, our way of solving the skills shortage in the U.S. seems to
be through the importation of highly-skilled foreign workers--a Band-
Aid approach that doesn't solve the underlying problem. America, as a
nation that gains from trade, has an obligation to use a portion of
those gains to support and re-train those who've been ill-affected. We
must do more to help American workers train for and get jobs that will
move them up the economic ladder.
In 1998, we passed the Workforce Investment Act. One important
component of the WIA is the funding stream for dislocated workers.
Grants to states and local communities provide core, intensive training
and support services to laid off workers. Under President Clinton,
dislocated worker funding has tripled from $517 million in 1993 to
$1.589 billion for FY2000. This is an important program, like Trade
Adjustment Assistance, that helps American families deal with an
economy that's transforming itself as ours is today.
But is it enough? Is it enough to train workers after they lose their
jobs or do we need to start before it's too late? With public/private
partnerships, we can train America's workforce for the jobs of the 21st
Century, the hi-tech jobs, the nursing jobs, the educator jobs. It's
our responsibility to encourage companies like Caterpillar and Motorola
and Cargill and others to let local, state, and federal officials know
what types of workers they must have to meet their needs for the
future. We should encourage more Americans to pursue higher education
and skills training. I'm working for measures like college tuition tax
incentives that would provide tax deductions or credits for America's
working families to give their children the opportunity to prepare for
the jobs of this new economy. We also need assistance to help workers
with skills training and lifelong learning.
Some would argue as Lenin did that a capitalist will sell you the
rope you will use to hang him, but I think such trade serves a greater
purpose than profit. Information technology, now a key element in the
future of business, also is a key element in undermining government
control of thought and appetite. If you can flood a nation with modems
people use to learn and trade, no government can bridle the expansion
of thought and diversity that will follow.
Chinese leaders, recognizing the transformative nature of the free
flow
[[Page S8679]]
of ideas, have tried recently to clamp down on Internet usage by its
citizens. This will never work as the authorities in Beijing will
learn. China must either give up its desire to build a modern, high-
tech economy or allow the free exchange of information that a modern
economy requires. I accept the American premise that if you give people
a little freedom and enough information, the desire for freedom,
democracy and the chance to work hard and succeed will prevail.
You can station Chinese tanks on Tiananmen Square on a full-time
basis, but if you let the open exchange of ideas and business
transactions flow through those glowing modems, China will change for
the better.
Let's grant PNTR to China and begin a new chapter in the book of
U.S.-China relations. Bringing down trade barriers; Opening up new
markets; Giving American workers a chance to compete; And giving
America's customers a chance to enjoy the best our country can produce:
It's a formula for success. It's a challenge America has never shirked.
Our workers, our farmers and businesses are counting on us to trust
their ability to rise to the challenge in this new century. We cannot
fail them.
Mr. President, I listened carefully to the debate and statement made
by my colleague, Senator Wellstone, as well as Senator Hollings of
South Carolina. These two Senators and many others have spoken from the
heart during the course of this debate. The Senate of the United States
and the Nation are well served by the element they bring to this
debate, their deep-felt convictions, feelings, and values that have
been exhibited not only in their floor statements but in the amendments
they have offered over the last several weeks.
Though I may disagree in my conclusion on this treaty, I can tell you
I have the greatest respect and admiration for their leadership and for
standing up on these issues of human rights.
I would like to put this in perspective. If we believe the vote we
take this afternoon will give China some new benefit, then one could
argue that we should ask for something in return. One could argue that
if we are going to give China something, we should ask them to make
changes in China in their human rights policy, which is reprehensible--
the way they treat the press, the way they treat religions in that
country, their forced family planning policies, the coercive attitude
they have towards families and their future in China, the terrible
things which we have heard about, proliferation--all of these should be
on the table and part of the agenda as we negotiate, if the agreement
we are voting on is, in fact, a benefit given to China. But let me
suggest to you it is not. We are receiving the benefit from this
agreement. Let me explain.
The World Trade Organization is a group of over 130 nations which
have come together and said we are going to do away with the old school
of thinking where every country would put up tariffs and barriers to
trade with other countries. We are going to try a new approach. We are
going to try to drop those tariffs and barriers and see what free trade
will do. Let each country make a product and a service the best and
sell it around the world. That is what the World Trade Organization is
about. Over 130 nations have agreed that those are the rules by which
we will play.
Today in the Senate this will be a historic vote to decide whether or
not we bring China into the World Trade Organization and compete with
U.S. trade policy--in other words, the relationship between the United
States and China. China, in order to be part of this World Trade
Organization, has said they will agree to drop our tariffs and barriers
substantially so that American companies and farmers and others can
export to China. In other words, this is a win-win situation for
America's economy. It is China that is making all the decisions to drop
the tariffs and drop the barriers and give us a chance to compete--give
us a chance to sell to 1.2 billion people; give us a chance to sell to
one-fifth of the world's population. We win; they drop the barriers;
America gets a chance to sell overseas. That is what is at stake here.
If this benefit comes to the U.S. economy to be able to finally get
into this market and compete, then it is kind of hard to argue that we
ought to be holding off and conditioning this benefit on all sorts of
changes in China.
I have seen the amendments that have been offered by many of my
colleagues on the floor over the last several weeks. Many of these are
good faith amendments. Many of these I agree with totally in principle.
I voted against every single one of them. How can that be? Because,
frankly, they don't belong on this bill. This is a trade bill. Let us
address the issues of human rights, workers, environmental concerns,
and proliferation by China through a variety of other approaches. But
to use this trade bill is a mistake.
This trade bill gives us a chance to say to workers across America
that we are going to give them a new market; we are going to give them
a new chance. If my colleagues believe as I do that globalization and
global competition really are the future of this country, we in America
need markets in which to sell. That is what this is about.
I have a lot of confidence that American workers and businesses and
farmers, given a chance to compete by fair rules, can succeed. If you
believe that, you have to vote for this bill; you have to open this
market. You have to give us a chance to sell in what is one of the
largest markets in the world. That is what it comes down to.
There is also a provision that was added to the House bill which I
support completely. It is known as the Levin/Bereuter amendment. It is
a bipartisan amendment by Sandy Levin, a Democrat of Michigan, and Doug
Bereuter, Republican of Nebraska. They come together and say China has
to play by the rules. And we will watch them carefully with an
executive commission to make sure they are not only playing by the
trade rules but treating their people fairly.
I think that is the right way to proceed. I think it covers many of
the issues raised during the course of this debate. But, frankly, we
cannot hold up the expansion of trade opportunities waiting for China
to become a democratic nation. In fact, I think expanding trade in
exchange will lead China into democracy, into freedom, closer to what
we value as principles in this country. Why do I believe that? I saw
Tiananmen Square on television. I saw these tanks that were mowing down
common citizens standing up for freedom. It was reprehensible. It was
disgusting. But we saw it on television. There was a time not that long
ago we would have never seen it. We would have heard about it months
later. The world is opening up. We are seeing things in real time from
around the world, in China and other nations, and as a result the court
of world judgment says it is wrong and you have to change it, and the
pressure starts building.
Think about expanded economic exchange with China, expanded trade,
more foreign visitors, American businesses, American farmers, and
educators going into China, becoming part of their economy. Think about
this information technology as the Internet opens up China to new
thinking and ideas around the world.
Do you know what we believe in this country? We believe if people are
given the opportunity to hear diverse opinions, if they are given the
opportunity to see what the rest of the world looks like, they will
move closer to our model, closer to democracy, closer to freedom,
closer to open markets. I believe that, too. I do not believe the
Chinese leadership, even their hidebound old thinking, can turn that
tide. This bill opens those markets, opens this exchange of ideas and
goods, and gives us a chance to not only provide for workers and
farmers and businesses in America the chance to succeed in a new market
but a chance to change China for the better.
I yield the floor.
The PRESIDING OFFICER. The time of the Senator has expired.
Mr. DURBIN. Mr. President, I suggest the absence of a quorum and ask
it not be charged against the Democratic side.
The PRESIDING OFFICER. Without objection, it is so ordered. The clerk
will call the roll.
The senior assistant bill clerk proceeded to call the roll.
Mr. BOND. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
[[Page S8680]]
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. BOND. Mr. President, the debate before the United States Senate
on our granting China permanent normal trade relations status has been
a tremendous debate for the country. We have heard strong arguments for
and against enhancing our engagement and expanding trade with China.
This debate has implications for our economy, national security, and
for the future of China.
This vote has enormous implications for every American and people
around the world. I am pleased that the Senate is proceeding toward a
vote on final passage. It will be an honor to support legislation that
has such important implications for the people of my state and for our
country.
Let me say, that is not only desirable from a U.S. standpoint to have
China as a full member of the WTO, I think it is essential. China
entering the WTO will create unprecedented opportunities for American
businesses and farmers, it will encourage the new entrepreneurial
forces pushing china toward more liberal political, economic and social
policies and it will certainly contribute, if not ultimately lead, to
the further stabilization of Asia and the world.
From the standpoint of economic growth, increasing our economic
relationship with China is imperative. Increased trade has played an
indispensable role in the economic growth this country has experienced
in recent decades. The leadership and the growth of American companies
has been fueled by American companies winning access to new markets. As
many U.S. markets continue to mature, market access will play a more
important role for the expansion of our businesses.
At this time, the U.S. has very limited access to a market
representing the largest number of consumers in the world. China is a
nation of 1.2 billion people, one-fifth of the world's consumers. Over
the next 5 years, it is projected that 200 million of those Chinese
will enter the middle class. On a massive scale, these are people who
will be acquiring for the first time products that we in the United
States take for granted. We owe it to our workers and investors to give
our companies an equal opportunity to fight for those sales.
Increasing our relationship with a country of this size is also
important for maintaining our world leadership in the science,
aerospace, advanced technology, and medicine, and most important in all
those areas, the well-paying, advanced jobs of the future.
Trade is part of the process by which capital, resources and manpower
flow to the areas in which we perform best. Reducing restrictions on
capital flows has allowed American entrepreneurs to pursue opportunity,
create the best, most advanced products in the world, and in these
areas, lead the world.
Our world leadership in the industries of tomorrow did not happen by
accident. In addition to the spirit and ingenuity of the American
people, enough policy makers in this country have had the foresight to
create an atmosphere where this genius and industry can thrive.
Expanding our economic relationship and breaking down barriers to trade
with the largest block of consumers in the world is another huge step
in that process.
To continue to promote that environment where Americans can thrive on
a large scale, we need to pass this legislation.
But for me, the best reason to support this relationship is that it
is good for my state. Whether it is Missouri's farmers, our workers, or
our businesses, Missourians will benefit if China is a member of the
WTO.
Reviewing the numbers for American farmers alone gives a picture as
to the staggering opportunities in this market. China is currently our
fourth largest agricultural market. The U.S. Department of Agriculture
estimates that this market will account for 37 percent of the future
growth of agricultural exports. And the Chinese have agreed to slash
tariffs and eliminate the quotas on several products important to
economy of my state--soybeans, corn, cotton, beef, and pork.
As China eliminates their legal requirements for self-sufficiency in
agricultural products, if they remain only 95 percent self-sufficient
in corn and wheat, they will instantly become the second biggest
importer of those products in the world, second only to Japan. Missouri
farmers are ready to compete for those markets.
This is a tremendous opportunity to help our pork producers and
cattlemen, both areas in which China has agreed to cut tariffs. Unlike
the Europeans, the Chinese are ready for their people to enjoy American
beef. They are prepared to eat American beef openly and enjoy it in
public. In Europe, only the diplomats who come to the U.S. get to enjoy
a good piece of U.S. steak.
The Chinese are going to learn quickly what we know and the European
diplomats know, American beef is the best. As those 200 million Chinese
enter the middle class, I am confident they will enjoy American beef
and want more of it.
The projected increase for demand of pork in China is simply
staggering. Rather than go into the numbers, the pork producers
estimate that $5 will be added to the price of a hog when we expand our
trade relationship with China. That would be the difference between
success and failure for small pork producers.
On another issue of great importance to my state and to my farmers,
the Chinese have agreed to settle sanitary and phyto-sanitary disputes
based on science. What a novel idea. This is essential to avoiding non-
tariff trade barriers as our farmers continue to employ biotechnology
and advanced agricultural practices.
The benefits are not limited to agriculture, despite what has been
argued, benefits do extend to manufacturing and other sectors.
For example, one company in my state, Copeland, a division of Emerson
Electric, manufactures air conditioner compressors in the wonderful
town of Ava, MO. Those compressors are sent to China where they are
incorporated in units sold all over Asia. As the market for air
conditioners in Asia has expanded, the number of manufacturing jobs in
Ava have grown. Those jobs will not go to China and if this agreement
is passed the manufacturing jobs in the Ava facility are expected to
double.
This agreement opens competitive opportunities for businesses of all
sizes. Under the market opening agreement, the Chinese will eliminate
significant market barriers to entry blocking the competitiveness of
American companies.
For instance, currently, if a product can even be imported into the
country, the Chinese control every aspect of movement, right down to
who can handle and repair an item. Those requirements will be
eliminated as will the state-controlled trading companies. Quotas and
tariffs must be published.
These are major steps in the direction of a market-based economy. The
elimination of these wide-spread and draconian barriers will give
American entrepreneurs and small businesses that want to take on the
Chinese market a real chance to penetrate and compete. For the first
time, American businesses, large and small, will have the chance to
compete on a level playing field.
It is also worth nothing, that without the benefit of the WTO, to
ensure adherence to our trade agreements, we must rely on our federal
agencies to oversee and enforce agreements. Frustration with the
Chinese regarding their respect for and adherence to past agreements
has been expressed. We will receive the benefit of a rules-based
trading regime and the weight of enforcement on a multi-lateral basis
once China is a member of the body.
Some of the opponents argue that this measure is a ``blank check''
for China and that it ``rewards'' China despite the past abuses of its
people. The complaints of the human rights activists against China are
legitimate. The abuses and repression of religion are deplorable and
their gestures toward a free Taiwan are totally unacceptable.
I reemphasize that point. We should not tolerate their abuses and
their threats toward a free Taiwan.
The arguments that we are giving them a pass despite these abuses
misses the point and the argument that profits are taking precedence
over American values is wrong. This vote is of significant importance
in promoting free enterprise in China and creating a increasingly
prosperous and reform-minded middle class.
For all the backwardness of China on the issue of religious freedom
and human rights, positive changes are underway on the economic front--
we
[[Page S8681]]
should recognize that the changes are a direct threat to the communist
establishment in China. As the Chinese people become more aware of the
opportunities that exist for improving one's life that are inherent in
a free society, they will demand more rights from their government and
will demand that the government become more responsive to the will of
the people.
I have seen that on my visits to China. I am convinced the people of
China, as they see these opportunities, will increase their demand for
and their insistence on the basic principles that have made our country
strong.
Senators have come to the floor this week to tell troubling stories
about life in China and made arguments as to why it would be a mistake
at this time to grant China PNTR. By not supporting their amendments,
they have argued, we are betraying our values as a people and we are
abandoning support for the principles that make ours a great country.
For all their good arguments, passing PNTR and enhancing our economic
engagement with China is a concrete opportunity to promote change in
many of the areas raised. It is important to discuss these issues and
reiterate time and again in the strongest possible terms that we
condemn the practices of the Chinese. However, it does not follow that
defeating PNTR is the way to force the Chinese to change their
behavior. The exact opposite is true. Exposing China to more freedom
and opportunities is the way to bring about change.
One of the early amendments was in the area of the environment. The
argument has been made that we cannot grant the Chinese PNTR because
they have been poor stewards of their environment.
I remind my colleagues that with every extremely poor country in the
world, the struggle to employ their people and raise the standard of
living of its citizens is preeminent. People under such circumstances
must struggle to feed their families. They are not watching NOVA
environmental specials or reading National Geographic. They simply do
not have the luxury to worry about the environment.
The same applies to the government, creating economic growth to
employ the poor citizens is its goal. What China needs is wealth
creation, jobs, and enterprise apart from the state. When the
desperation and the poverty begin to subside the government is likely
to be far more open and responsive to managing the environment. But
calling for the denial based on their environmental policies while
withholding the best means for the country to raise their standard of
living does not offer a solution.
The same applies to labor practices. My support for PNTR does not
mean that I condone labor conditions in China. In fact I think they are
terrible. But is defeating PNTR in order to make a statement about
labor practices in China going to improve worker's rights. Absolutely
not.
The way to improve workers rights in China is allow foreign
enterprises into the country, create more private sector jobs and more
opportunity. The world buying from the Chinese will create private
sector employment and reduce dependence on the government. It creates
more choice and opportunity.
I share the concerns of my colleagues about Chinese crackdown on
religious practices. It is an appalling and unacceptable government
practice that we must continue to speak out against.
But forcing loyalty to the state and the crushing of all beliefs and
values that compete with loyalty to the state is a practice that is
common among communist dictatorships. This is the way that leaders in
communist countries avoid having the people's loyalty to the state and
the question of their purpose in life cluttered by outside influences.
Again, will supporting PNTR empower the reform movement? Can
promoting free enterprise in China undermine the grip of the
government? I think it can.
By joining the WTO and pursuing economic engagement and integration
with the world, the Chinese communist leadership are taking a risk.
They are taking the risk that foreign entities can enter the country
and form relationships with Chinese people but the people will still
maintain their loyalty to the state.
They are taking the risk that their citizens are going to be exposed
to the outside world and the freedoms those in American and other
countries enjoy but that the Chinese people will not want a piece of
that freedom for themselves.
They are taking the risk that Chinese people can go to work for
private enterprises, with the freedom to pursue better opportunities
and with the freedom to innovate, make their own decisions and enrich
themselves, but at the end of the day, still maintain the belief that
the communist lifestyle, with its per capita income of $790 a year and
blind loyalty to the omnipotence of the state is the superior way of
life.
The Chinese are taking a risk that their people will bear witness to
entrepreneurship, capitalism, an improved standard of living, middle
class lifestyle and freedom of association, and not recognize that
freedom is the better and more rewarding way of life.
That is an enormous risk for the Chinese communist leadership to
take--I think it is a bet they will lose.
Some of my colleagues do not possess this belief. They chose to
maintain the most dire outlook on the circumstances. I believe in the
virtue and the power of freedom.
Some of my colleagues have chosen to shout at the Chinese leaders
about freedom, but to most of the Chinese leaders freedom means a loss
of power. Much of this rhetoric, as part of a quest for meaningful
change, will not do much to advance the ball. The Chinese leadership is
not interested in hearing it.
Change in China, for the reasons I stated, is not going to come from
the top down, at least until there are a lot of high-class funerals in
that state, from the actuarial numbers that are about to apply. It is
going to come from the bottom up. We must seize any opportunities
available to make meaningful change happen.
The path to take is the one we are taking and that is to encourage
the infiltration of free enterprise, freedom of thought and freedom of
association into the current society. It may not happen over night, it
may never happen and if it does, it is likely to be messy. But there
are signs of movement in a positive direction--we have an opportunity
to grease the skids. We would be missing a historic opportunity if we
did not seize this chance. My colleagues that oppose this bill are
wrong to think otherwise.
Not supporting this bill will also hurt the effort to promote the
rule of law. There is a reason why a number of dissidents have come out
in support of this legislation. The WTO is a rules-based organization
that cannot exist if members do not adhere to the rule of law. As a
member, China will have both rights and obligations and will have to
deal with other nations as equals. Indeed, as a member of a growing
number of international organizations, China will continually be
subject to the rule of law and continually confronted with the
challenge of accepting international norms and, hopefully, standards of
freedom.
Finally, admission to the WTO is not a substitute for a strong,
consistent foreign policy toward China. Certainly one reason why this
debate has been difficult is because the administration has lack of a
clear foreign policy toward China and the resolve to act on important
issues as they arise. In my observation of this administration, it
appears to me that they place much hope that admission to the WTO will
erase their abysmal record in dealing firmly with China on important
issues.
We as a nation must reiterate our support for the security of a
democratic Taiwan and stand by that country as they negotiate the terms
of their relationship with Taiwan. We must support the entry of Taiwan
into the WTO and not let China dictate the terms by which this valuable
friend and trading partner is admitted to the world trade body. We must
provide Taiwan the means by which they can provide for their own
security.
We must speak out for the freedom of the Chinese people to practice
religion. We must speak in favor of increased freedom for the Chinese
people.
China must be told that we will not tolerate their continued export
of weapons technology that can lead to the destabilization of several
regions around the world. We must push the Chinese to improve the
export controls
[[Page S8682]]
and we must be forceful when we discover violations in international
antiproliferation agreements.
These are not objectives that will be accomplished by defeating PNTR.
These are challenges that the current administration has failed to
meet. We have not had the adult supervision we need in foreign affairs,
in military affairs, and in relations with a critical, large member of
the world organizations, and that is China. We have to have an
administration which understands foreign policy, which speaks with a
clear voice, annunciates our principles, and stands up for them.
Defeating PNTR will not give us a strong foreign policy. That will
depend upon the next administration. I fervently hope and pray that we
will get some decent leadership in foreign affairs beginning next year.
We have lacked it. We have been sorrowfully observant of the failures
and shortcomings throughout the last 7\1/2\ years. Defeating PNTR will
not help the next administration in their foreign policy towards China.
Approving PNTR will. We must be firm in charting our course in the
defense of national security.
This is an important step to take for the strength of our economy and
for our workers and farmers. It is also an important step to take to
move China toward a freer society. We must cast this vote with open
eyes. It does not answer the questions surrounding China that have been
raised during this debate. That is for the foreign policy of the next
administration. By adopting PNTR and voting favorably, we can take the
first step in giving the next administration the tools to develop a
strong foreign policy with respect to China.
I urge my colleagues to join with me in supporting permanent normal
trade relations with China. I yield the floor.
Mr. BYRD addressed the Chair.
The PRESIDING OFFICER (Mr. Enzi). The Senator from West Virginia.
Mr. BYRD. Mr. President, I believe that the Senate is about to make a
grave mistake. It is hard for me to believe that after a year which has
seen the Chinese Government rattling sabers at Taiwan, continuing to
brutally repress religion, and, generally, behaving like the ``Bobby
Knight'' of the international community--after a year like that--the
Senate is still determined to hand the Chinese a huge early Christmas
present called permanent normal trade relations. We are running a $70
billion deficit with China. China's string of broken promises on trade
and nonproliferation matters is longer than the Great Wall of China.
Yet, a majority in this Senate has agreed to put all of its eggs into
one basket and rush to pass PNTR. ``Don't worry. Be happy,'' says the
administration. We have the bilateral trade and investment pact to
protect us.
The bilateral trade and investment pact negotiated between the U.S.
Trade Representative and China is one of a series of agreements which
China is negotiating with members of WTO in order to join the body. The
agreement has been used to assuage the many concerns of some Members of
this body about granting PNTR to China. But I believe that PNTR and the
new U.S.-China trade pact, that panacea of all good things, will
encourage mainly one phenomenon--one phenomenon; namely, more U.S.
corporations will move operations to China to capitalize on low-wage
production for export back here to the United States.
Now if Senators don't believe it, just look at recent history. Look
at NAFTA. Clear evidence is right there--NAFTA, the Holy Grail of
NAFTA. The North American Free Trade Agreement was supposed to right
every wrong, cure every evil, and make us all healthy, wealthy and
wise. NAFTA's proponents convinced Congress in 1993 that NAFTA meant
large net benefits to the U.S. economy, and nothing more. There were no
down sides. The line went that the U.S. could only gain from expanded
trade with Mexico because Mexico was reducing its trade barriers more
than the United States. Moreover--and this will sound very familiar--
proponents were positive that reducing trade barriers with Mexico would
encourage ``reform'' politicians in Mexico to privatize the economy.
Now, where have we heard that before?
A new, vast middle-class would emerge, creating a new, vast middle
class market in Mexico, just waiting with baited breath to gobble up
American-made goods. The Clinton administration confidently predicted a
giant boom in U.S.-made autos sold to Mexico.
Well, my fellow Senators, what happened when we found the Holy Grail
called NAFTA? Exactly the opposite happened, that's what. A 180-degree
turn happened. NAFTA encouraged large U.S. investors to move production
and capital and jobs south of the border to exploit cheap labor and lax
environmental standards. These new factories then exported their
products back to the United States. By 1999, the United States was
running a trade deficit with Mexico of $23 billion.
Automobiles were major contributors to the deficit. So were auto
parts, computers, televisions, and telecommunications equipment. What
happened to the large new Mexican middle class, salivating to buy
American goods, which NAFTA was supposed to create? Instead of raising
living standards in Mexico, NAFTA reinforced ``reform'' government
policies in Mexico that reduced real wages for workers by 25 percent
and increased to 38 percent the share of the Mexican population
subsisting on $2.80 a day.
Does all this sound familiar, I ask my colleagues? It should. It
certainly should. Once again the administration is playing that same
old tune to Congress and to the American people. The administration
argues that U.S. exports to China will rise because tariffs will be
lowered on goods like automobiles and auto parts. Sounds familiar,
doesn't it?
Additionally, unlike the Japanese yen or the Euro, or the Mexican
peso, the exchange value of the Chinese currency does not float in the
international market. It is largely determined by the Chinese
Government, itself. In 1994, the Chinese devalued their currency in
order to expand their exports and reduce their imports. Nothing in the
bilateral agreement we have negotiated with China prevents the Chinese
from such manipulation again.
In 1992, the Chinese and U.S. Governments signed a memorandum of
understanding in which China agreed to provide access to U.S. goods in
its markets, and to enforce U.S. intellectual property rights.
President George Bush hailed this agreement as a breakthrough. The USTR
under President Bush claimed that the 1992 agreement would provide
``American businesses, farmers, and workers with unprecedented access
to a rapidly growing Chinese market with 1.2 billion people.'' Well,
since that much-touted 1992 agreement, U.S. exports to China have risen
by about $7 billion. But look at this. Imports from China to the United
States have risen by $56 billion. Now, who won that round?
Yet, the Clinton administration continues to claim that this new
agreement will ensure the political triumph of democracy-loving, U.S.-
friendly, free-market leaders in China, who can be trusted to live up
to their end of the bargain. Someone downtown must be popping
``gullible'' pills. That claim gives new meaning to the word ``naive''.
China's successful growth and modernization absolutely depend upon
its ability to export to foreign markets in order to earn the hard
currency needed to import new technology. China is currently running a
$70 billion annual trade surplus with Uncle Sam, with the United
States. But China is running a trade deficit with the other major hard
currency blocs--the European Monetary Union and Japan--a trend that
will continue into the foreseeable future. In order to pursue its own
self-interests, China has to exploit the U.S. market to the maximum.
Given this agenda, in a totalitarian state, one can be sure that the
full force of the power of that state will be focused on protecting its
manufacturing, technological, and agricultural markets. No faction of
Chinese leaders can possibly deliver a more open economy to the United
States or to the WTO. It is fool's gold to make that claim--fool's
gold. It is the economic and political reality of the Chinese situation
and agenda that makes it all but certain that China will violate any
trade agreement, if it serves the national interests of China to do so.
We have not yet in this Senate or in this Nation or in this
administration come to grips with that fundamental reality. It will not
be different this
[[Page S8683]]
time. It will not be any different this time. The Chinese behave the
way they do in matters of trade because they have to, to survive. They
cannot and will not change. The Chinese Government is not some eager
puppy, like my little dog Billy Byrd, panting to please the United
States or anybody else. The Chinese are committed to their own goals
and their own interests and they will do whatever it takes to further
their agenda.
The Clinton administration claims that China has agreed in the
bilateral trade agreement to eliminate health-related barriers to U.S.
meat imports that were not based on scientific evidence. But, let's
listen to the words of Chinese trade negotiator, Long Yongtu. Let's
hear what he said:
Diplomatic negotiations involve finding new expressions. If
you find a new expression, this means you have achieved a
diplomatic result. In terms of meat imports, we have not
actually made any material concessions.
And there is even more interesting commentary from China's chief
negotiator, Long Yongtu, in an article he authored on the impacts of
WTO entry, as reported by the BBC. On the issue of a Chinese compromise
with the United States on the import of U.S. meat products he said, ``.
. . in the United States people there think that China has opened its
door wide for the import of meat. In fact, this is only a theoretical
market opportunity. During diplomatic negotiations, it is imperative to
use beautiful words--for this will lead to success.''
We need to take note of the words of these Chinese officials. We need
to listen more carefully. Beautiful words do not mean promises kept.
Sometimes when we in the United States hear ``yes'' the Chinese are
only saying ``maybe.''
The USTR asserts that ``China will establish large and increasing
tariff-rate quotas for wheat--with a substantial share reserved for
private trade.'' Yet again, Chinese negotiator Long Yongtu sees it
differently. He has publicly stated that, although Beijing had agreed,
on paper, to allow 7.3 million tons of wheat from the United States to
be exported to the China mainland each year, it is a ``complete
misunderstanding'' to expect this grain to actually enter the country.
The Chinese negotiator said that in its agreement with the United
States, Beijing only conceded ``a theoretical opportunity for the
export of grain from the United States.'' We are suckers.
And yet, in the face of all of this contradiction by the Chinese, the
Clinton Administration actually expects us all to believe that the
bilateral agreement, PNTR and the WTO will magically force the Chinese
government to shred its own national agenda, disregard its own needs
and interests, even risk its own viability, in order to live up to an
agreement with the United States. How naive can we be?
If anyone actually believes that, then let me introduce you to the
tooth fairy; Tinkerbell; Mr. Ed, the talking horse; Snow White; the
seven dwarfs; and Harvey, the invisible six foot rabbit.
This Senate and the administration--by all means, this
administration--should pay a little more attention to history.
Let us look again for a moment at the history of NAFTA. From the time
of the North America Free Trade Agreement took effect in 1994 through
1998, the net export deficit with Mexico and Canada has grown. Over
440,000 American jobs have been destroyed as a result of this growth.
Although gross U.S. exports to Mexico and Canada have shown a
dramatic increase--with real growth of 92.1 percent with Mexico and
56.9 percent to Canada, that is only half the picture. Let us turn the
corner. It is like knowing only one team's score or looking at only one
side of the coin. We have to look at the other side of the coin to know
who is winning; namely, what are we importing from Mexico?
The increases in U.S. exports have been overwhelmed by what we import
from Mexico. Those imports have shot up 139.3 percent from Mexico and
58.8 percent from Canada. In 1993, before NAFTA was in effect, we had a
net export deficit with our NAFTA partners of $18.2 billion. From 1993
to 1998 that same net deficit increased by 160 percent to $47.3
billion, resulting in job losses to American workers The first year
NAFTA took effect, foreign direct investment in Mexico increased by 150
percent. Foreign direct investment in Canada has more than doubled
since 1993.
Those are American workers' jobs that are flying like geese--we have
heard the wild geese flit across the sky on their way south--across the
borders. Factories move over the border to take advantage of cheap
labor costs, and they take good-paying American jobs with them.
But, Senator Byrd, you may say, unemployment in the United States is
at 4.1 percent. Our people have jobs. Our unemployment is very low. The
answer to that question lies in a closer scrutiny of the composition of
U.S. employment. Good paying jobs with good benefits, largely in the
manufacturing sector, are leaving our shores and being replaced by low
skill, low wage jobs in the services sector. There is a hidden agenda
that becomes apparent if one remembers the lessons of NAFTA and then
ponders PNTR with China. You heard them say at the convention: You
ain't seen nothing yet? Well, you ain't see nothing yet. Against that
backdrop, it becomes more than clear where we are headed. We have been
here before.
The objective for U.S. business is not access to the Chinese domestic
consumer market. Forget it. They cannot afford our goods. The objective
is the business-friendly, pollution-friendly climate in China, which is
advantageous for moving production off U.S. shores and then selling
goods, now made in China, back to the United States--selling goods made
by American manufacturers that move overseas back to the United States.
Are we really going to expect anything different from a deal with the
Chinese? Our trade deficit reached $340 billion in 1999. China accounts
for 20 percent of the total U.S. trade deficit. A U.S. International
Trade Commission report stresses that China's WTO entry would
significantly increase investment by U.S. multinationals inside China.
Additionally, the composition of Chinese imports has changed over the
last 10 years. In 1989, only 30 percent of what we imported from China
competed with our high-wage, high-skilled industries here in the U.S.
By 1999, that percentage had risen to 50 percent.
The unvarnished, unmitigated, ungussied up truth is that American
companies are eagerly eyeing China as an important production base for
high-tech products. And these made-in-China goods are displacing goods
made in the good ole USA, Additionally, most U.S. manufacturing in
China is produced in conjunction with Chinese government agencies and
state-owned companies. So much for the claim that U.S. corporate
activity in China benefits Chinese entrepreneurs, and will lead to
privatization and, lo and behold, the emergence of a democratic China.
Get it? The emergence of a democratic China.
If all this were not enough, a Senate report, made public last week,
charged the Chinese government with consistently failing ``to adhere to
its nonproliferation commitments.'' In addition to outlining numerous
instances of Chinese weapons sales to Iran, Libya, and North Korea, the
report states, ``In many instances, Beijing merely mouths promises as a
means of evading sanctions.''
Yet Senator Thompson only got 32 votes in favor of his amendment,
which would have given the Congress a role in monitoring China's
proliferation of weapons of mass destruction.
Senators, I could go on and on and on, but I believe there is more
than ample evidence that to grant PNTR to China at this time is very
unwise. The signal we send by granting PNTR now is a signal of abject
weakness. It is a signal of greed. It is a signal of ambivalence on the
issue of nonproliferation. It is a signal of total disregard for the
overwhelming evidence that the Chinese Government will not keep its
word.
I fear that the benefits claimed to be derived from PNTR are really
only PR from the White House. They are selling us soap and we are
lathering up. We are risking a lot on the unfulfilled promises
contained in the so-called bilateral trade agreement with China. Of
course, the price for that deal was the administration's commitment to
China that they could get PNTR through the Congress this year. It is a
package deal--a
[[Page S8684]]
nice little wagonload of a Chinese signature on the bilateral trade
agreement and an unencumbered PNTR present from the Congress. The only
problem is that the wagon might be riding on Firestone tires. Shouldn't
we Senators use a little caution and put off climbing in that wagon? I
am not getting on that wagon. Wouldn't it be more prudent to stay off
that wagon? Wouldn't that be the right choice for our Nation's people,
the right thing for our national security?
This legislation--PNTR--can wait and it ought to wait. As far as this
Senator's vote is concerned, it will wait.
Mr. President, I yield the floor.
The PRESIDING OFFICER. The Chair recognizes the Senator from
Colorado.
Mr. ALLARD. Mr. President, I sat here and listened to my good friend
from West Virginia on trade. I believe I should speak from a position
of representing a State that has benefited immensely from the trade
agreements that we have passed recently--the North American Free Trade
Agreement and the General Agreement on Trade and Tariffs.
Exports from the State of Colorado, which I represent, have increased
dramatically. In fact, we have experienced the greatest growth in
exports of any State in the Nation on a percentage basis. The economy
of the State of Colorado is based greatly on agriculture. My friend
from West Virginia talked about agriculture to a certain degree. We
grow a lot of wheat. We raise a lot of livestock, and we do make an
attempt to expand our markets to the Pacific rim countries, which
includes China.
We have a very modern economic base in the State. We work a lot on
exporting high tech. Many high-tech companies do business in the State
of Colorado. On a concentration basis, we have the highest
concentration of high-tech employees of any State in the country. So we
benefit from exporting goods, and the North American Free Trade
Agreement has helped the State of Colorado, and GATT has also.
I happen to think that an agreement with China for normal trade
relations will help agriculture, and it will help States such as
Colorado because these are markets where we can compete and have been
competing.
My colleague from West Virginia talked a considerable amount about
the trade deficits we are experiencing in this country. I come at the
trade deficit issue from a different perspective than my colleague from
West Virginia. I have looked at what happened historically with trade
deficits. If we look at the time of the Great Depression in this
country, the trade deficits were low. If we look at the time when we
were suffering, when we had the misery index--and this is at the latter
part of the 1970s, during the Carter administration--the trade deficit
was low. We had high double-digit unemployment. We had high double-
digit inflation, and we had high double-digit unemployment. But our
trade deficit was low. I happen to believe when we look at the trade
deficit, it is more of a reflection of what is happening economically
in this country. Our country has experienced high trade deficits when
our economy has been doing well, just like during the period of time we
are in today.
So the figures he presents to you on trade deficits, in reality, they
do happen. What is the significance to the economy? I happen to believe
it has the opposite impact. Many times, when people are evaluating the
impact of the trade deficit, they look at it only from the perspective
of one industry. If you look at the total economy, the total growth of
jobs within this country, we benefit, in many cases, by importing
products.
How does that work? Let's take an automobile, for example. Some State
may have a company--maybe in Michigan, for example--that could be
impacted by trade policies. But does that have a net impact on jobs in
the United States? Many times, when you take it into total
consideration, there is a net gain because there are jobs--union jobs--
created when you have to unload those cars at our ports. There are jobs
created when you have to clean up the cars when they come into the
country. There are jobs created when you have to transport those cars
across the country to get them to a point of sale. Somebody has to sell
the cars. Jobs are created there. Somebody has to buy the cars. There
is insurance sold in relation to the purchase of the car. Goods and
services relating to that go into the marketplace. Those cars have to
be maintained and operated and fixed. Many times, they go into a resale
market at some point in their lifetime.
These are all jobs that are created as a result of having imported
that product. So I am convinced that our best policy is to work in a
free market environment, and the problem we have right now is not that
we don't place a lot of the tariffs and restrictions on Chinese goods
coming into this country, but China is the one that is placing
restrictions on our goods going into their country--particularly
agricultural products and goods related to the high-tech industry. That
is why I think this particular effort to create normal trade relations
is beneficial. Isolationism doesn't work. Isolating a country and
saying that is going to help human rights--I don't think that works.
That is one reason why Taiwan, for example, supports our efforts to try
to establish permanent normal trade relations with China.
So I think that in order to prevent human abuse, to protect human
rights, we need to open up China. When our business people go into
China, they expect a certain standard. They just won't do business with
Chinese companies without those standards. They will have to abide by
their contracts. If somebody doesn't honor the contract, there has to
be a court system of some type that will help enforce those contracts.
And these all carry with them democratic principles.
When Chinese businessmen interact with American businessmen, they
will understand how the free enterprise system works, how democracy
works. I think we export democracy when we enter into a free market
agreement where we take down trade barriers and increase the
interaction between countries--particularly when we are talking about a
democratic county as opposed to a Communist one. They see there is a
different way of doing things and prospering that yields benefits far
and above what they have been told in a country where the leaders
restrict information and restrict freedoms.
I think it is important we pass this piece of legislation that says
we will have permanent normal trade relations with China.
I see my colleague from North Carolina.
Mr. BYRD. Mr. President, will the Senator yield?
Mr. ALLARD. I would be glad to yield to the Senator from West
Virginia. But I also know that I have a colleague from North Carolina
who would like to be recognized for some comments. I yield to my
colleague from West Virginia.
Mr. BYRD. The Senator mentioned my name. That is why I am asking him
to yield.
I appreciate the fact that he has given us his viewpoint. My remarks
were largely based on research that has been done by the Economic
Policy Institute. It is dated November 1999. I am reading from a paper
issued by the institute. It is headed with these words:
NAFTA's pain deepens. Job destruction accelerates from 1999
with losses in every State.
It shows Colorado as having a net NAFTA job loss of 3,625 jobs. It
doesn't show as much for West Virginia as Colorado. West Virginia has a
net NAFTA loss of 1,183 jobs.
Let me say this to the Senator. I have been in Congress now 48 years.
I have seen Democratic administrations, and I have seen Republican
administrations. The kind of talk we just heard from this Senator--I
respect him as a colleague, but I have to say this--is the same kind of
talk I have been hearing from these administrations for 48 years. That
is State Department talk. It is the same old State Department talk.
I will say to this Senator, we are going to get taken to the
cleaners. We have been taken to the cleaners all these 48 years by
other countries. In these ventured agreements, our negotiators for some
reason or other always come out second. We have been taken to the
cleaners. We will be taken again.
The Senator stated his opinion. That is this Senator's opinion, and
it is based on 48 years of hearing this same line that emanates from--
--
The PRESIDING OFFICER. The Senator from Colorado has the floor.
[[Page S8685]]
Mr. ALLARD. I ask the Senator to let me reclaim my time. I appreciate
his comments. We have a Senator from North Carolina who would like to
have an opportunity to speak. I think we are working under some time
guidelines.
The PRESIDING OFFICER. The time is controlled.
Mr. ALLARD. I would like to briefly respond. I am speaking from the
experience of a Senator who represents a State that has benefited from
free trade policy. It is not State Department talk, it is what we have
seen economically. I wanted to respond, and I would like to yield my
time to the Senator from North Carolina to be recognized.
Mr. BYRD. Mr. President, how much time did I use on this side?
The PRESIDING OFFICER. The Senator used 22 minutes.
Mr. BYRD. How much time does the Senator from North Carolina need? I
will yield him half of my time. I ask that time that has been absorbed
in this colloquy come out of my time.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. BYRD. Do I have any time left?
The PRESIDING OFFICER. The Senator has used 25 minutes of his 30
minutes.
Mr. BYRD. I reserve my 5 minutes.
We will be taken to the cleaners again. Mark my word.
I thank the Senator.
Mr. President, I ask unanimous consent to print a chart prepared by
the Economic Policy Institute on ``NAFTA job loss by State, 1993-98.''
There being no objection, the material was ordered to be printed in
the Record, as follows:
TABLE 3.--NAFTA JOB LOSS BY STATE, 1993-98
------------------------------------------------------------------------
Net NAFTA
job loss.--
State No. of jobs
------------------------------------------------------------------------
Alabama.................................................... -11,594
Alaska..................................................... -395
Arizona.................................................... -3,296
Arkansas................................................... -6,663
California................................................. -44,132
Colorado................................................... -3,625
Connecticut................................................ -4,616
Delaware................................................... -866
District of Columbia....................................... -798
Florida.................................................... -13,841
Georgia.................................................... -15,784
Hawaii..................................................... -907
Idaho...................................................... -1,397
Illinois................................................... -16,980
Indiana.................................................... -21,063
Iowa....................................................... -4,850
Kansas..................................................... -3,452
Kentucky................................................... -8,917
Louisiana.................................................. -3,245
Maine...................................................... -1,877
Maryland................................................... -3,981
Massachusetts.............................................. -8,362
Michigan................................................... -31,851
Minnesota.................................................. -6,345
Mississippi................................................ -8,245
Missouri................................................... -10,758
Montana.................................................... -1,139
Nebraska................................................... -1,751
Nevada..................................................... -2,342
New Hampshire.............................................. -1,265
New Jersey................................................. -11,045
New Mexico................................................. -1,268
New York................................................... -27,844
North Carolina............................................. -24,118
North Dakota............................................... -732
Ohio....................................................... -19,098
Oklahoma................................................... -3,018
Oregon..................................................... -5,359
Pennsylvania............................................... -20,918
Rhode Island............................................... -4,234
South Carolina............................................. -7,305
South Dakota............................................... -1,217
Tennessee.................................................. -18,332
Texas...................................................... -18,752
Utah....................................................... -2,973
Vermont.................................................... -597
Virginia................................................... -9,797
Washington................................................. -8,331
West Virginia.............................................. -1,183
Wisconsin.................................................. -9,314
Wyoming.................................................... -402
U.S. total............................................. -440,172
------------------------------------------------------------------------
\1\Excluding effects on wholesale and retail trade and advertising.
\2\Source: EPI analysis of Bureau of Labor Statistics and Census Bureau
data.
The PRESIDING OFFICER. The Senator from North Carolina is recognized.
Who yields time?
Mr. HELMS. I thank the Chair for recognizing me. In a moment, I hope
the Chair will allow me the privilege of making my remarks seated at my
desk. But I want to say that Senator Byrd says he has been here 38
years.
Mr. BYRD. Forty-eight years.
Mr. HELMS. Forty-eight years. I have only been here 28 years, and I
have the same opinion the Senator does about the State Department. I
have said many times how proud I am that the distinguished Senator from
West Virginia is a native of North Carolina because he was born there.
He moved at a very early age to West Virginia, a State which he has
represented ably. But I admire the Senator for many reasons. We don't
always agree. But I will tell you one thing. This Senator is dedicated.
When I say ``this Senator,'' I mean Senator Robert C. Byrd of West
Virginia. He is dedicated to the proposition that this Senate shall
operate in an orderly way. He made some remarks today about the unusual
character of the way the voting time on this measure was arranged, and
I objected to it as he did. I think it ill becomes the Senate. I hope
it never happens again.
Mr. President, if I may take my seat.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. BYRD. Mr. President, I thank the Senator.
The PRESIDING OFFICER. The Chair wishes to know who yields time.
Mr. HELMS. Mr. President, today the Senate----
The PRESIDING OFFICER. If the Senator will suspend for a moment, the
Chair needs to know whose time this time is coming from.
Mr. BYRD. I yield my 5 remaining minutes to the Senator from North
Carolina. I don't have control of the time other than that.
Mr. HELMS. I thought I had gained the floor in my own right. But I
appreciate that very much. I will not take long in any case.
The PRESIDING OFFICER. The Senator's time comes from Senator Lott's
time.
The Senator from North Carolina.
Mr. HELMS. Mr. President, this afternoon the Senate will reach the
end of the debate on H.R. 4444, a bill to legislate permanent normal
trade relations to and with the People's Republic of China.
The debate, yes, will end this afternoon. But I can assure you that
just now beginning is a debate about the future of United States and
China relations.
The outcome of today's vote was well known long before the first
syllable of debate resulted. I recall the objection stated by Senator
Byrd, and I objected to the procedure as well because it was a pro
forma action about how the consideration of H.R. 4444 was going to be
conducted and the concluding result was to be final passage without
even one amendment to be added.
I don't think that is becoming of the Senate, but I shall not refer
to the Senate's posture as a conspiracy, but it is a first cousin to
one, and I remain exceedingly troubled by what has transpired. I
fervently hope it never happens to the Senate again.
The outcome of this debate was decided before any Senator even sought
to be recognized by the Presiding Officer to make his or her case for
or against PNTR. But all that aside, the Senate will shortly vote, and
I trust that all Senators' votes will be cast with the courage of their
real convictions and not convictions determined by others for them.
I commend my friend, the Senator from Delaware, Mr. Roth, and the
Senator from New York, Mr. Moynihan, for their defense of ``their''
bill. Both Bill Roth and Pat Moynihan have been exceedingly
accommodating to me and to other Senators.
But there was a stacked deck that guaranteed approval of H.R. 4444.
It was evident from the start. I shall always be grateful to Senators
who endeavored to ensure a serious debate, and for their courage and
resolve.
I express my admiration to, among others, Senator Byrd and Senator
Thompson, Senators Bob Smith, John Kyl, Paul Wellstone. These Senators
were Churchillian in their efforts. Sir Winston Churchill demonstrated
seven or eight decades ago that there would be no stacked deck when he
courageously called for a principled confrontation against the
despotism of Nazi Germany.
In the course of the Senate's debate, we did succeed in making an
indisputable record concerning the deplorable state of human rights in
China. And we did succeed in exposing the heinous practice of forced
abortion. And we did succeed in focusing the attention of our Nation,
and I think of the world, on the peril of China's proliferation.
If I may again mention Mr. Churchill, the press paid him scant
attention when he cast his warnings about the trip of the Prime
Minister of Great Britain to Munich where he met with Adolph Hitler,
and then came back to London for a big press conference proclaiming
``Peace in our time.'' Mr. Chamberlain proclaimed that that fellow
Hitler was someone the British people could live with.
[[Page S8686]]
Mr. President, I sincerely fear that this bill will have serious
consequences because of its profound implications for the future of
U.S.-China relations, relations totally unlike the happy ones described
by the bill's advocates.
The interests of various American businesses will, no doubt, be
served, but to those of us who have worked in the Senate Chamber during
this debate, it is highly questionable whether the national interests
of either the United States or the interests of the people of China--
the people of China--will be served.
As I mention ever so often, when I was a little boy I was interested
in the Chinese people and their culture. That interst grew as the years
went by. During my 28 years as a U.S. Senator, I have met with and
worked with hundreds of Chinese students, delightful young people,
bright and without exception having expressed profound hopes and
prayers that their homeland can one day enjoy the freedom that the
American people have by inheritance.
So clearly and without a trace of equivocation, I have the deepest
admiration for the Chinese people--I repeat that for emphasis--and it
is my fervent hope and my prayer that one day they will be freed from
the brutal dictatorship that now controls their lives.
I sincerely believe that the majority of the American people share
that feeling. I have had people stop me in the corridors. Just a few
moments ago, I had the Commander of the American Legion from my State
stopped me to say that he agreed with my position. I hear it over and
over--in the mail we receive, in the e-mail, the faxes and letters.
Mr. President, there is unquestionably an enormous potential for a
deep and lasting relationship of respect between the people of our
country and the people of China. I have long been convinced that what
separates us is not animosity between our peoples.
It is the Communist dictatorship in Beijing which neither speaks for,
nor rules by, the consent of the Chinese people.
Today in China, millions of courageous people struggle for democracy
and for religious freedom and for basic human rights. Because when they
dare to do so, they are beaten and they are jailed; they are tortured
and often murdered. It is for these freedom-seeking Chinese that I
stand here today.
Their interests, not the interests of corporate America, are my
priority. And that is why I have not been able to support H.R. 4444.
Mr. President, there are many bureaucratic contacts and exchanges
between the U.S. and the Chinese Government. Some of my good friends,
and friends of many of us in this Senate, have traveled to China time
and time again, exchanged toasts with Chinese Communist leaders,
clinked glasses of wine; but the attitude of the Communist Government
has never changed.
It still throws decent Chinese citizens in jail. It still denies the
Chinese people the most basic political liberties. So giving permanent
normal trade relations to the Government of China will indeed destroy
an important lever that we now have, and have had, to influence Chinese
behavior. We are tossing it aside.
The advocates of PNTR have repeatedly declared that this enactment
will help the cause of democracy and human rights in China. Those
declarations will now be put to the test and the ball will be in the
court of Beijing. With today's vote, the Chinese Government is being
given an historic opportunity to change the course of U.S.-Chinese
relations for the good.
The Chinese Government has not confronted such a challenge since
Beijing's tragic decision--remember--in Tiananmen Square, when a tank
crushed a peaceful student protest, crushed that young man into paste.
That was 11 years ago and nothing has changed since.
To seize upon this moment and make me be proven wrong, China must act
quickly, not merely to open its markets as required under the agreement
with the United States but open its society as well, to demonstrate a
commitment to humane treatment of its people at home, and a more benign
and peaceful approach to its relationship with its neighboring
countries. The Chinese Government must cease the suppression of
religious liberties.
Even the Washington Post commented on that this morning in a well-
written, well-thought-out editorial. The Chinese Government must put an
end to the abhorrent practice of forced abortion. And with regard to
the democratic Government of Taiwan, China must demonstrate that it is
committed to peaceful dialog as being the only option for resolving
differences between Taiwan and the Communist mainland.
Mr. President, I would be less than honest if I did not confess my
great apprehension that there will be little if any real change by the
Chinese Government as a result of our passing this measure. But if real
change is to take place, the United States must more aggressively
support the aspirations of the hundreds of millions of Chinese people
who want their homeland to become a nation that is both great and good.
We must reach out to those people who are struggling for a freer,
more open and more democratic China, and make clear to them that the
American people stand with them. We must make clear to the Chinese
Government that it will not be in their interests to continue their
oppression of their own people, that in the long run totalitarian
dictatorship cannot be tolerated.
So if the advocates of PNTR prove to be wrong, and if nothing changes
in China in the wake of the Senate's final approval of PNTR this
afternoon, I will devote whatever strength and influence I may possess
to limit any and all conceivable benefits that this legislation may
hold for the Chinese Communist Government.
I am nearly through, but I want to emphasize that, like many others
in the Senate, I am a father and a grandfather. I am a grandfather who
yearns for a peaceful world for my family and for all Americans.
Better relations with China are an important hope of a peaceful
world, but not better relations at any price. Too often in history,
some of the world's great democracies have sought to coexist with, even
to appease, dangerous and tyrannical regimes.
I mentioned at the outset Winston Churchill, who took his stand
against his country's Prime Minister Neville Chamberlain who had
visited with Adolf Hitler in Munich, then returning to London
proclaiming there would be ``peace in our time'' and that Britain need
not fear Nazi Germany.
There was that one man who stood up and said no, Winston Churchill,
who was to lead the free world into combat in one of the worst
tyrannies history has ever known.
We must not repeat the mistake of Britain's Prime Minister seven
decades ago. I have absolutely nothing against American business men
and women making a profit. I want them to make a profit. I believe in
the free enterprise system. I believe I have demonstrated that in all
of my career.
But the safety and security of the American people must come first
through the principles of this country which were laid down by our
Founding Fathers. That safety and security will be assured ultimately
not by appeasement, not by the hope of trade at any cost, but by
dealing with Communist China without selling out the very moral and
spiritual principles that made America great in the first place.
I thank the Chair and yield the floor.
The PRESIDING OFFICER. The Chair recognizes the Senator from Montana.
Mr. BAUCUS. Mr. President, I am very pleased we are about to complete
the debate on PNTR and are about to take the final vote. It has been a
good debate. It has been a time when the American people have had an
opportunity to learn more about what PNTR for China actually will be.
There are good arguments on all sides, but I am quite happy, frankly,
that now we are at the end of this long process, finally the United
States will grant permanent normal trade relations to China. We are
finally putting that issue to bed, and some side issues, too, have been
put off to the side, as important as they are.
Many of the issues raised on the Senate floor not directly relevant
to PNTR have been very good ones. Proliferation of weapons of mass
destruction, human rights, religion freedom, environment, prison labor,
Taiwan-PRC relationship are very important matters that, in some cases,
go to the heart of American policy. They are clearly issues that need
to be debated and resolved. The United States has a very important
stake in all of them.
[[Page S8687]]
Some of the amendments that have been proposed to PNTR in these last
few weeks have been good ones; others, not so good. Fortunately, a
majority of my colleagues opposed all amendments to the PNTR bill, even
when we agreed with the underlying concerns. Why? Basically because any
amendment that would be part of PNTR would be killer amendments due to
the very short number of remaining days in this session. Because of
Presidential politics, which is engulfing us to some degree, it is much
more prudent not to adopt amendments at this time. In the next
Congress, we will have an opportunity to deal with these issues. I hope
we can deal with them, particularly based on the merits.
I want to take a moment to discuss what will happen after the PNTR
vote. It is more to remind ourselves that despite the successful
conclusion of the debate, when the votes are counted later today, they
will not create a single job. Our votes will not sell a single bushel
of wheat. Rather, PNTR is an enabler. It is a vital enabler. It enables
American businesses and American people to do much more than they can
now do.
The immediate next step of completion of PNTR is completion of
negotiations in Geneva on the Protocol of Accession and the Working
Party Report to the WTO General Council. Once China formally accedes--
that is, becomes a member of WTO--we Americans will remove China from
the restrictions of the Jackson-Vanik legislation. That is when it
happens. At that point, the American private sector has to take
advantage of the immense new opportunities afforded by China's
membership in the WTO.
Passage of PNTR will be one for the history books with profound
implications for the United States. Once it passes, we Americans have
to put our shoulders to the wheel. We have to follow up. American
industry has to follow up. The American Government has to follow up in
a way that we enable ourselves to maximize potential benefits to our
service providers and to our manufacturers. We have to take matters in
our own hands. We have to take advantage of this. The same is true for
the U.S. Government at both ends of Pennsylvania Avenue, the executive
branch as well as the legislative branch. We need to watch China and
monitor China's compliance to make sure this agreement is implemented.
I am reminded of another agreement we had earlier with China --that
is the intellectual property rights agreement--because some Chinese
firms were pirating America's films, CDs, cassettes, and other
intellectual property created in the United States. We finally urged
China to pass a law making the pirating of intellectual property
illegal in China. China passed the law. The problem is they did not
implement it. We had to go back and encourage implementation. We may
face the same problems here. I hope not. It is possible.
As we move ahead, we must never forget how multifaceted our
relationship with China is. That means we must aggressively address the
many important issues raised in the PNTR debate. As important as those
issues are, they should not be on the bill, but they still indicate the
multifaceted nature of our relationship with China.
One major area is focusing on our strategic architecture in Asia.
Assuring stability in the region, helping maintain peace and
prosperity, and a presence of American troops are vital factors, as are
other major strategic questions. They are extremely important. All
parts of our relationship with China and passage of PNTR raise the
probability we will be more successful in that area.
We must also take measures to help incorporate China positively into
the region, and we must encourage China into the role of a responsible
actor, both in the Asian region and globally.
The growth in commercial and economic activity now developing between
us and China should form a pillar on which we can build a stable
relationship. There are no guarantees. There never are guarantees in
life. One has to do the best with what one has, with the resources one
has available. Passage of PNTR gives us more resources. It is an
enabler to help us increase the probability of a stronger commercial
and economic relationship to help form that pillar. Again, there is no
guarantee.
We must also try to avoid the constant ups and downs that have
characterized the bilateral relationship over the past 30 years.
I am not going to stand here and chronicle the volatility of the ups
and downs, but I do think it is important for us to lop off the peaks
and the valleys in this somewhat volatile relationship with China as
best we can, recognizing that we are only one side of the equation and
China, of course, is the other.
But the more we try and the more we engage them at lots of different
levels--whether it is trade, artistic exchanges, cultural exchanges, or
military exchanges--the more likely it is we will not have to be so
involved in this volatile activity. That means a stronger economic
relationship between our two countries, which I think will be a major
consequence of the passage of this bill.
I thank all my colleagues. This is going to be a good, solid vote. It
is going to indicate that the United States is a player in the world
community, that the United States is not retrenching itself, but moving
forward, and that the United States is living up to its
responsibilities as the leader, frankly, of the world in a way that is
positive, constructive, and exercising its constructive roles. I am
very proud of the action the Senate is about to take.
Mr. President, I yield back my time.
Mr. SCHUMER. Mr. President, I am prepared to support PNTR for China,
but I still have reservations about China's willingness to fulfill its
previous trade commitments particularly as it pertains to insurance.
First, I want to express my appreciation to President Clinton and
Ambassador Barshevsky who have been forceful advocates in ensuring that
China keeps its end of the bargain and fully implements the 1999
bilateral agreement between our two nations. Last week, President
Clinton and President Jiang Zemin held a frank and detailed discussion
about China keeping its commitment to allow U.S. insurers to expand in
China under the grandfathered right to operate through their current
branch structure.
In response, President Jiang pledged that China will ``honor its
commitments to further opening its domestic market'' to grandfathered
insurance companies. This is a positive, but still ambiguous statement
which I hope the Chinese president will clarify. And in clarifying his
position, I hope President Jiang understands that should U.S. insurers
be denied the grandfathered rights to branch in China, it would result
in a serious degradation of the ``terms and conditions'' for insurance
that were negotiated by USTR last November.
The problem extends beyond insurance to the heart of the PNTR
agreement. Should PNTR become law, the President must certify:
. . . that the terms and conditions for the accession of
the People's Republic of China to the World Trade
Organization are at least equivalent to those agreed between
the United States and People's Republic of China on November
15, 1999.
Anything less than full compliance in honoring China's commitment to
grandfather U.S. insurers' branching rights will inhibit the
President's ability to certify that the equivalent requirement has been
met.
Every business that trades with China is looking to see how this
matter is resolved because they need to know that trade agreements will
truly be followed. If China wants to engage in the free market, its
leaders must know that trade agreements are not arbitrary documents but
ironclad commitments.
Mr. CONRAD. Mr. President, I wish to join my colleagues in expressing
support for passage of Permanent Normal Trade Relations with China.
This is the right thing to do for the country, and it is the right
thing to do for my state of North Dakota.
I think it is important at the outset to make it clear what this vote
is about--and what it is not about. This vote is about making sure that
U.S. farmers, businesses, and workers receive the benefits of China's
accession to the World Trade Organization. The agreement on China's
accession is a clear win for the United States. China has made
concession after concession, lowering tariffs and removing other
barriers to U.S. exports. The U.S. has made no such concessions. But if
we
[[Page S8688]]
fail to pass Permanent Normal Trade Relations, PNTR, we will not be
able to take full advantage of these opportunities but will instead
cede them to our competitors.
There has been a lot of misleading talk and innuendo about what PNTR
really means. PNTR is not a special privilege, and it does not signify
our approval of China's domestic or foreign policies. In fact, we
continue to have many differences with China that we can and should
work vigorously to resolve. PNTR would simply grant China the same
trading status that the United States has with more than 130 other
countries around the world: nothing more, nothing less. And it would
grant China the same status going forward that it has had continuously
for the last twenty years. The only change is that the Congress no
longer would hold an annual vote on China's trade status, a vote that
has never denied China Normal Trade Relations but that has set back our
efforts to engage China on human rights and other issues.
The PNTR debate is primarily about trade, so let me start by talking
about the trade benefits for our country. As my colleagues know, this
vote is not about whether China should be part of the WTO. There is no
question that China will join the WTO. The only question is whether the
United States will reap the benefits of the many concessions China has
made, or whether our farmers, businesses and workers will be left out.
That would be a profound mistake.
China has the world's largest population: 1.3 billion potential
customers for American products. For years, our market has been open to
Chinese imports, but China's market has largely been closed to our
products. This agreement will open China's market to our exports. And
this is a market that has terrific growth potential. China's economy is
the fastest growing in the world, and China's expanding middle class
will demand more and more imports of American consumer goods.
The agreement reached last November allows us unprecedented access to
this huge and growing market. On manufactured goods, tariffs will fall
from a current average of nearly 25 percent to less than ten percent.
On services, China has agreed to phase out a broad array of laws
regulations and policies that have blocked U.S. firms from competing in
this growing market.
But I am especially pleased at the prospects for increased
agricultural exports. Around the world, average tariffs on U.S.
agricultural exports are more than 40 percent. China is slashing its
tariffs to far below this average: 17.5 percent. And on U.S. priority
products--the products that we produce for export--the average Chinese
tariff will fall to just 14 percent. For bulk commodities the agreement
establishes generous tariff rate quotas. For example, on wheat, a major
export product for North Dakota, China will allow imports of 7.3
million metric tons initially (growing to 9.6 million tons by 2004)
subject to a tariff of just 1 percent. In addition, China has agreed to
changes in its administration of tariff rate quotas that will prevent
state trading monopolies from blocking imports if there is private
sector demand for wheat.
For my State of North Dakota, the agreement provides new export
opportunities for wheat, for oilseeds, including canola, and for beef
and pork products. The U.S. Department of Agriculture has estimated
that this agreement could add $1.6 billion annually to U.S. exports of
grains, oilseeds and cotton in just five years. Additional growth
opportunities for North Dakota agricultural exports will come as China
reduces its tariffs on beef (from 45 percent today to 12 percent by
2004) and pork (from 20 percent to 12 percent). Finally, the China
agreement provides additional leverage for U.S. goals in the ongoing
WTO negotiations on agriculture. China has agreed to eliminate export
subsidies, to cap and reduce domestic subsidies, and to provide the
right to import and distribute products without going through state
trading enterprises.
There can be no question that this agreement will create expanded
export opportunities for American workers, farmers and businesses. But
the key word here is ``opportunities.'' This agreement creates
wonderful opportunities for North Dakota agriculture, but it is not a
silver bullet. This agreement will not solve all of our trade problems
with China. Nor will the results come overnight. We will need to work
aggressively year after year to take advantage of these opportunities
and turn them into results. And we will need to closely monitor China's
implementation of its commitments.
In that vein, I am very pleased that the legislation we are
considering includes provisions I strongly supported to ensure that the
Federal government monitors and enforces China's WTO accession
agreement. And I am hopeful that the WTO's multilateral dispute
resolution system will be more successful than our past unilateral
efforts to hold China to its commitments. The simple fact is that the
current system has not worked well. There has been no neutral
arbitrator to resolve disputes. As a result, U.S. firms have been very
reluctant for the U.S. to take action against China because of Chinese
threats to retaliate against American business. With China in the WTO,
we will have the advantage of a neutral dispute resolution system and
rules to guard against Chinese retaliation.
In my view, the trade benefits alone are enough to conclude that we
should support PNTR for China. But this debate is about more than just
trade. It is about human rights and national security as well. I
believe bringing China into the WTO and passing PNTR is the best way to
improve human rights in China. Clearly, our current annual debate over
Normal Trade Relations has had little effect on human rights in China.
Bringing China into the WTO, though, will increase the openness of
Chinese society. It will increase the presence of American and other
Western firms in China. It will open China to the InterNet and other
advanced telecommunications technologies that, over time, will expose
average Chinese to our thoughts, values, and ideals on human rights,
workers' rights and democracy.
This is not just my view. It is a view shared by numerous prominent
Chinese dissidents and religious and democratic leaders. They believe
that rejecting PNTR will only strengthen the iron hand of the hard-
liners in the Chinese leadership. For example, Bao Tong, a prominent
dissident, was quoted in the Washington Post saying that attempts to
use trade sanctions on human rights simply do not work: ``I appreciate
the efforts of friends and colleagues to help our human rights
situation, but it doesn't make sense to use trade as a lever. It just
doesn't work,'' Mr. Bao said. Similarly, Dai Qing, a leading Chinese
environmentalist, argues that passing PNTR ``would put enormous
pressure on both the government and the general public to meet the
international standard not only on trade, but on other issues including
human rights and environmental protection.'' Finally, the Dalai Lama
has said that ``joining the World Trade Organization, I think, is one
way to change in the right direction. . . . In the long run, certainly
it will be positive for Tibet. Forces of democracy in China get more
encouragement through that way.''
Finally, I believe that passing PNTR will promote our national
security interests. History teaches us that conflicts among trading
partners are less likely than conflicts between countries that do not
have strong economic ties. In contrast, rejecting PNTR could send a
strong signal to China that the U.S. wants to isolate China. A hostile
China is not in our national interest. A China integrated into the
international system, obeying international rules and norms, is.
In conclusion, Mr. President, the arguments in favor of PNTR for
China are very strong. Passing PNTR advances America's interests in
Asia and the world. It is good for our national economy, and it is
particularly good for my state's agricultural economy. I hope my
colleagues will join me in sending a strong bipartisan message of
support for China's accession to the WTO.
Mr. KENNEDY. Mr. President, this has been a very difficult debate for
all of us in the Senate who care about labor rights, about human
rights, and about the environment in China.
These issues are important, and we can't ignore them. I especially
commend the many leaders throughout the country on labor issues, human
rights issues, and environmental issues for
[[Page S8689]]
stating their case and their concerns on these challenges so eloquently
and effectively. It's clear that we must do more than this agreement
does to make sure that free trade is also fair--that it improves the
quality of life of people everywhere, and creates good jobs here at
home.
The demonstrations at last year's WTO negotiations in Seattle and in
other cities since then show that we must pay much greater attention to
these concerns. Too often the current system of trade enriches multi-
national corporations at the expense of working families, leaving
workers without jobs and without voices in the new global economy. Too
many companies export high-wage, full-benefit jobs from our country and
replace them with lower-paying jobs in the third world countries with
few, if any, benefits.
For too many families across America, globalization has become a
``race to the bottom'' in wages, benefits, and living standards. In
recent years, corporate stock prices have often increased in almost
direct proportion to employee layoffs, benefit reductions, and job
exports. This growing inequality threatens our own economic growth and
prosperity, and we must do all we can to end it.
I am also very concerned about a trade deficit that continues to grow
at an alarming pace. In this historic time of economic prosperity, the
trade deficit remains one of the most stubborn challenges we face.
While the current trade deficit is clearly a sign that the U.S. economy
is the strongest economy in the world, we cannot sustain this enormous
negative balance of trade for the long term. We risk losing even more
of our industrial and manufacturing base to foreign countries with
lower labor standards.
Similarly, all of us who care about human rights and environmental
rights must find more effective ways to address these concerns. The
flagrant violations of human rights that continue to take place in
China are unacceptable. And so is the callous disregard of the
environment by that nation as its economy advances.
The answer to these festering problems is to give these fundamental
issues a fair place at international bargaining tables. Clearly, we do
not do enough for labor rights, human rights, and the environment when
we negotiate trade agreements.
I intend to vote for this agreement, however--as flawed as it is--
because I am concerned that the alternative would be even less
satisfactory. But I welcome the Administration's commitment to give
these other issues higher priority in future trade negotiations, and I
look forward to working to achieve these essential goals.
The global marketplace is a reality, and the United States stands to
gain much more by participating in it than by rejecting it. I'm hopeful
that we will be able to work together in the future on these basic
issues in ways that bring us together, not divide us.
It is especially significant that all of the economic concessions
made in this agreement are made by China. It will not change our own
market access policies at all. The concessions that China has made are
substantial, and President Clinton and his Administration deserve
credit for this success. In particular, US Trade Representative
Charlene Barshefsky did a excellent job negotiating this agreement for
the United States.
By approving PNTR, Congress is not deciding to accept China into the
World Trade Organization. China will join the WTO regardless of our
vote in Congress. What Congress is deciding is whether to accept or
reject the extraordinary economic concessions that China has offered to
the United States. If we reject PNTR, we reject the bulk of the
concessions that China reluctantly made. We would be allowing China to
keep its barriers up--and we might well be inviting the WTO to impose
sanctions against us for not playing by the rules we agreed to.
Within five years, under this agreement, China will completely end
its tariffs on information technology. It will eliminate its
geographical limitations on the sale of financial services and
insurance. It will do away with quotas on products such as fiber-optic
cable. And it will end the requirement to hire a Chinese government
``middle-man'' to sell and distribute products and services in China.
These are major concessions that no one could have predicted even two
years ago.
China has also agreed to eliminate export subsidies. The inefficient,
state-owned industries in China will no longer be able to rely on
government support to stay afloat. They will be required to compete on
a level playing field. China has agreed that its state-owned industries
will make decisions on purely commercial terms, and will allow US
companies to operate on the same terms.
The agreement also contains strong provisions against unfair trade
and import surges. We will have at our disposal effective measures to
prevent the dumping of subsidized products into American markets for
years to come. The agreement contains strong and immediate protections
for intellectual property rights, which will benefit important US
industries such as software, medical technology, and publishing. Strong
protections are also included against forced technology transfer from
private companies to the Chinese government--a provision that has
benefits for both commercial enterprises and national security.
All of these protections and concessions will be lost if Congress
fails to pass PNTR. Rejection of this agreement would put American
businesses and workers at a major disadvantage with our competitors in
Europe and in many other nations in securing access to the largest
market in the world.
One out of every ten jobs in Massachusetts is dependent upon exports,
and that number is increasing. If we accept the concessions that China
has given us, companies in cities and towns across the state will be
more competitive. More exports will be stimulated, and more jobs will
be created here at home.
It is clear that many of our businesses will reap significant
benefits from this trade agreement. But it is also clear that some
businesses and workers will be hurt by it as well. It is our
responsibility to do everything we can to reduce the harm that free
trade creates. We must strengthen trade adjustment assistance and
worker training programs. As we open our doors wider to the global
economy, we must do much more to ensure that American workers are ready
to compete. We must make the education and training of our workforce a
higher priority as we ask our citizens to compete with workers across
the globe. Importing skilled foreign labor is no substitute for fully
developing the potential of our domestic workforce. The growth in the
global marketplace makes education and training more important than
ever.
We need to create high-tech training opportunities on a much larger
scale for American workers who currently hold relatively low-paying
jobs and wish to obtain new skills to enhance their employability and
improve their earning potential. As the economy becomes more global and
more competitive, it would be irresponsible to open the doors to new
foreign competition, without giving our own workers the skills they
need to compete and excel. I'm very hopeful that passage of this
agreement will provide a strong new incentive for more effective action
by Congress on all these important issues.
The issue of PNTR also involves major foreign policy and national
security considerations. When China joins the World Trade Organization,
it will be required to abide by the rules and regulations of the
international community. The Chinese government will be obligated to
publish laws and regulations and to submit important decisions to
international review. By integrating China into this global, rules-
based system, the international community will have procedures never
available in the past to hold the government of China accountable for
its actions, and to promote the development of the rule of law in
China.
The WTO agreement will encourage China to continue its market reforms
and support new economic freedoms. Already, 30 percent of the Chinese
economy is privatized. Hard-line Chinese leaders fear that as China
becomes more exposed to Western ideas, their grip on power will be
weakened, along with their control over individual citizens.
As the economic situation improves, China will be able to carry out
broader
[[Page S8690]]
and deeper reforms. While economic reforms are unlikely to result
immediately and directly in political reforms, they are likely to
produce conditions that will be more conducive to democracy in China in
the years ahead.
All of us deplore China's abysmal record on human rights and labor
rights and the environment, and we have watched with dismay as these
abuses have continued. It is unlikely that approving PNTR will lead to
an immediate and dramatic improvement in China's record on these
fundamental issues. But after many years of debate, the pressure
created by the annual vote on China's trade status has not solved those
problems either.
Approving PNTR leaves much to be desired on all of these essential
issues. But on balance, I believe that it can be a realistic step
toward achieving the long-sought freedoms that will benefit all the
people of China. The last thing we need is a new Cold War with China.
Mr. KERREY. Mr. President, I rise to comment on the legislation
pending before the Senate on Permanent Normal Trade Relations with
China. I support this bill not only because it is in the best interest
of American farmers, businesses, and consumers; but also because
passage of PNTR is the best way for America to have a positive
influence on China's domestic policies, including policies affecting
basic human rights.
I believe that this bill has been characterized by many of my
esteemed colleagues as something that it is not--a reward to China
despite its poor human rights record. Surely, we do not agree with the
treatment of China's citizens, just as surely as we do not agree with
so many other practices of the Chinese government. However, it is
important to remember that China will become a member of the WTO no
matter how we vote. If the Congress were to vote against Permanent
Normal Trade Relations, many of our trading partners will receive the
myriad benefits of trading with China, while our farmers, our
businesses, . . . our citizens would be excluded.
Furthermore, the interest we have in promoting human rights
protection in China is not defeated with the passing of this bill. The
Congress has used its annual review of Normal Trade Relations to push
China to become more democratic, to treat its citizens with basic
decency, and to discourage Chinese participation in the proliferation
of weapons of mass destruction. We now have the opportunity to assist
our allies in bringing China into the world trading community. And by
bringing China further into the global community, the real
beneficiaries of PNTR, and eventual membership in the WTO, will be the
Chinese people. The Chinese people will benefit from the new economic
opportunities created by increased trade. The Chinese people will
benefit from the spread of the rule of law, from increased governmental
transparency, and from the economic freedom which will come as a
consequence of China's membership in the WTO. Finally, passage of PNTR
will make it much more likely that the Chinese people will have the
opportunity to do what so many Chinese-Americans have done in the
United States. By harnessing the power of individual innovation and by
starting businesses, the Chinese people will be able to generate new
wealth and new opportunities for themselves and their children.
While the rewards of membership are evident, let us not overlook the
responsibilities that come with membership in that community--
particularly the responsibilities that come with membership in the WTO.
What better way to promote democracy in China, a nation that has long
lacked a strong rule of law, than to encourage its participation in
institutions, like the WTO, with strong dispute resolution mechanisms.
Membership in the WTO will cause China to reexamine its legal
infrastructure. Violating WTO agreements brings real consequences--the
imposition of trade sanctions.
This is a historic opportunity. We will soon be voting on one of the
most important bills ever debated in this body. I will support
Permanent Normal Trade Relations for China and I hope that my
colleagues will recognize this bill's importance, and give it their
support.
Let me remind my colleagues that granting PNTR is not a reward for
China, it is a reward for US farmers, businesses, and consumers.
Passage of PNTR would allow the US to take advantage of the concessions
agreed to by China in the bilateral agreement during its accession
process. Tariffs for US goods will be drastically reduced.
Mr. McCAIN. Mr. President, I rise in strong support of H.R. 4444, the
U.S.-China Relations Act of 2000. This long-overdue legislation is an
essential prerequisite to the advancement of U.S. interests in the Asia
Pacific region, and I urge its prompt passage.
The preceding two weeks have witnessed considerable debate on the
floor of the Senate with respect to U.S.-China relations and the wisdom
of granting permanent Normal Trade Relations status to the government
in Beijing. Clearly, there are extraordinarily serious issues dividing
the United States and China. Issues central to our national security
and moral values continue to preclude the development of the kind of
relationship many of us would have liked to have enjoyed with the
world's most populous country. As long as China continues to engage in
such abhorrent practices as forced abortions, the harvesting of human
organs, repressive measures against people of faith and pro-democracy
movements, and the proliferation of ballistic missiles and technology,
there will continue to be considerable tension in our relationship.
No one should attempt to minimize the significance of these
activities. Their termination must be among our highest foreign policy
priorities. Opponents of extending permanent normal trade relations
status to China, however, are wrong to suggest that such a policy
weakens our ability to address important issues that insult our values
as a nation and impose tremendous suffering on many Chinese citizens.
On the contrary, the economic relationship between the United States
and China is a powerful tool for moving China in the direction we
desire.
There is considerable room for improvement in the human rights
situation in China, and efforts at ending Chinese transfers of
ballistic missile technology to other countries have been frustratingly
ineffective. Denying permanent normal trade status for China, however,
is not the answer. China does in fact represent a case for economic
engagement as a mechanism for affecting political change. China's
history, which cannot be divorced from discussions of contemporary
Chinese developments, is quite illuminating in this respect. One of the
world's oldest and proudest civilizations, China has nevertheless never
known true democracy. Go back 3,000 years and trace its history to the
present. It is only in the last quarter-century that the window has
truly opened for those aspiring to a freer China.
The economic reforms initiated by the late Premier Deng Xiao-ping
began a process that has benefited millions of ordinary Chinese and has
held out the greatest hope for prosperity and, ultimately, political
freedom that country has ever known. The Chinese government, in fact,
is struggling with the dichotomy between economic liberalization and
political repression and is discovering to its dismay that it has
irreconcilable interests. The United States, by maximizing its presence
in China through commercial investment and trade, can be of
immeasurable assistance to the Chinese population in ensuring that that
conflict between economic growth and political repression is resolved
in the direction of liberalization.
Objective analysis strongly supports this assertion. Since the
beginning of economic reform in 1979, China's economy has emerged as
one of the fastest growing in the world. The World Bank calculates that
as many as 200 million Chinese have been lifted out of poverty as a
result of the government's economic reforms. A recent Congressional
Research Service study noted that China will have more than 230 million
middle-income consumers by 2005. Clearly, economic reform, fueled in
large part by trade, is benefitting the average Chinese citizen. It is
important that we enable American businesses to develop a presence in
these markets now, so that they can both take advantage of future
developments and so that American values and practices can better take
hold and flourish.
We should not be ashamed of the fact that our economy benefits by
trade
[[Page S8691]]
with China. China's accession to the World Trade Organization, an
inevitability given its importance as a market, will allow American
companies to sell to Chinese consumers without the current arbitrary
regulations. China will be forced to take steps to open its markets to
U.S. goods and services that it has been reluctant to take in the past.
These steps include major reductions in industrial tariffs from an
average of 24 percent to an average of 9.4 percent; reductions in the
tariffs on agricultural goods from an average of 31 percent to 14
percent, as well as elimination of non-tariff barriers in agricultural
imports; major openings in industries where China has been extremely
reluctant to permit foreign investment, including telecommunications
and financial services; and unprecedented levels of protection for
intellectual property rights. In addition, the United States will be
able to use the dispute resolution mechanism of the WTO to force China
to meet its obligations and open its markets to American goods.
Opponents of engaging China in trade should be aware that membership
in the World Trade Organization carries with it responsibilities that
are at variance with Communist Party practice. That is why Martin Lee,
chairman of the Democratic Party of Hong Kong, noted that China's
participation in the WTO would ``bolster those in China who understand
that the country must embrace the rule of law.'' Similarly, Wang Shan,
a liberal political scientist, stated that ``undoubtedly [the China WTO
agreement] will push political reform.'' And the former editor of the
democratic journal Fangfa has written that ``if economic monopolies can
be broken, controls in other areas can have breakthroughs as well . . .
In the minds of ordinary people, it will show that breakthroughs that
were impossible in the past are indeed possible.''
Yes, we have serious concerns with Chinese behavior in a number of
areas. As General Brent Scowcroft stated in a hearing before the
Commerce Committee last April, however, the essential point is what is
gained by denying China permanent normal trade relations status. We
would not accomplish our foreign policy objectives in the Asia Pacific
region, or within the realm of missile proliferation, by impeding trade
with China. I supported the measure offered by Senator Thompson
intended to address the issue of Chinese missile proliferation because
of that issue's importance to our national security, but also because
it was not intended as an anti-trade measure, as is the case with the
other amendments offered to this bill.
It is past time that the Senate passes permanent normal trade
relations status for China. It is in America's interest, and in the
interest of hundreds of millions of Chinese citizens. It is the right
thing to do.
I thank the President for this opportunity to address the Senate, and
urge passage of the U.S.-China Relations Act of 2000.
Mr. KERRY. Mr. President, the Senate is debating an important
question with tremendous ramifications for our relationship with China
and the American economy: whether to extend Permanent Normal Trade
Relations status to China (PNTR).
The opponents of PNTR argue that China is not worthy of receiving
PNTR. They offer a laundry list of reasons. Its track record on human
rights has not only not improved but has gotten worse. It continues to
ignore commitments made in the nonproliferation area, particularly with
respect to the spread of missile technology. Its intimidation of Taiwan
continues, with little indication that Chinese leaders are prepared to
avail themselves of Taiwanese President Chen Shui-bian's offers to
begin negotiations. Its compliance with existing agreements leave a lot
to be desired. They speak passionately about those concerns. And these
issues should never be overlooked in any thoughtful analysis of our
relationship with China. They must productively be incorporated into a
policy of engagement; but make no mistake: we must have a policy of
engagement.
I support PNTR and I intend to vote for it. I will admit to you that
when I read recent press accounts of yet another crackdown on religious
practitioners in China--this time members of a Christian sect called
the China Fang-Cheng Church--and of the deaths of three Falung Gong
members who have been imprisoned--I understood once more the temptation
to reverse my position and vote against PNTR. But I am not going to do
that Mr. President, because PNTR is not an effective tool for changing
China's behavior at home or abroad--and as much as we detest the
behavior in China with regard to religious freedom, it is not symbolic
protest that will bring about change, but thoughtful approaches and a
new and different kind of engagement--economic as well as diplomatic--
that will leverage real change in China in the years ahead .
So let me say once more, there is no question that the issues raised
by the opponents of PNTR are serious and real. We are all outraged by
the repression of Chinese citizens who simply want to practice their
spiritual beliefs or exercise political rights. But denying China PNTR
will not force the Chinese leadership to cease its crackdown on
religious believers or political dissidents. It will not force China to
abide by the principles of the Missile Technology Control Regime (MTCR)
or slow down its nuclear or military modernization, or reverse its
position on Taiwan. Denying PNTR will NOT keep China out of the WTO.
But I am certain that denying China PNTR will set back the broad range
of U.S. interests at stake in our relationship with China and undermine
our ability to promote those interests through engagement.
China has the capacity to hinder or help us to advance our interests
on a broad range of issues, including: nonproliferation, open markets
and free trade, environmental protection, the promotion of human rights
and democratic freedoms, counter-terrorism, counter-narcotics, Asian
economic recovery, peace on the Korean peninsula and ultimately peace
and stability in the Asia-Pacific region. It is only by engaging with
China on all of these issues that we will make positive progress on any
and thereby advance those interests and our security. Engagement does
not guarantee that China will be a friend. But by integrating China
into the international community through engagement, we minimize the
possibility of China becoming an enemy.
Over the last three decades, U.S. engagement with China, and China's
growing desire to reap the benefits of membership in the global
community have already produced real--if limited--progress on issues of
deep concern to Americans, including the question of change in China.
There are two faces of life in China today:
The first face is the disturbing crackdown on the Falon Gong and the
China Fang-Cheng Church, the increase of repressive, destructive
activities in Tibet, the restraints placed on key democracy advocates
and the harassment of the underground churches. The second face is that
of the average citizen who has more economic mobility and freedom of
employment than ever before and a better standard of living.
More information is coming in to China than ever before via the
Internet, cable TV, satellite dishes, and western publications.
Academics and government officials openly debate politically sensitive
issues such as political reform and democratization. Efforts have begun
to reform the judicial system, to expand citizen participation and
increase choices at the grass roots level.
While China's leaders remain intent on controlling political
activity, undeniably there are indications that the limits of the
system are slowly fading, encouraging political activists to take
previously unimaginable steps including the formation of an alternative
Democracy Party. On the whole, Chinese society is more open and most
Chinese citizens have more personal freedom than ever before. Of
course, we must press for further change, but we should not ignore the
remarkable changes that have taken place.
China's track record on weapons proliferation is another issue of
serious concern. Senator Thompson has introduced sanctions legislation
targeted at China's proliferation policies, and I understand he will be
offering that as an amendment to PNTR. With this legislation, Senator
Thompson has done the Senate and this Nation a great service, by
forcing us to take a hard look at the reality of China's commitment to
international proliferation norms. And that reality, particularly over
the last
[[Page S8692]]
eighteen months, is disturbing. But I do not believe that a China-
specific sanctions bill is an effective response to the challenge of
weapons proliferation. And we should not scuttle PNTR just to make a
point--however valid--about China's continuing export of missile-
related technology.
Our concern about recent Chinese activities related to the transfer
of missile technology should not lead us to overlook the totality of
China's performance in the arms control area. The fact is China has
taken steps, particularly in the last decade, to bring its
nonproliferation and arms export control policies more in line with
international norms. China acceded to the Biological Weapons Convention
in 1984. In 1992, China acceded to the Nonproliferation Treaty, NPT.
China signed the Comprehensive Test Ban Treaty in 1996, CTBT, and the
next year promulgated new nuclear export controls identical to the
dual-use list used by the Nuclear Suppliers Group. In 1997 China joined
the Zangger Committee, which coordinates nuclear export policies among
NPT members. The same year it ratified the Chemical Weapons Convention
and began to enforce export controls on dual-use chemical technology.
In 1998 China published detail export control regulations for dual-use
nuclear items. These developments have also been accompanied by various
pledges, for example not to export complete missile systems falling
within MTCR payload and range and not to provide assistance to Iran's
nuclear energy program. China's commitment to these pledges has been
spotty but the fact is, China's record today is dramatically different
from what it was in the 1980s or the three decades before. Then we were
faced with a China exporting a broad range of military technology to an
array of would-be nuclear states including Libya, Syria, Iran, Iraq,
Pakistan and North Korea. Today, our principal concern is Chinese
exports in the area of missile-related technology--not complete missile
systems--and to two countries: Pakistan and Iran. That, it seems to me,
is progress, and progress made during a period of growing engagement
between China and the international community.
Some in this body, frustrated that our current engagement with China
has born little fruit, are offering amendments in an attempt to use the
presumed leverage in PNTR as a means of changing China's policies. I
believe that engagement offers the best prospects for promoting our
interests with China but I understand and share their frustration over
the way in which the current administration has engaged China. The next
administration must engage with greater clarity of message, consistency
of policy, pragmatism about what can be achieved and over what time
frame, and determination to hold China accountable when it misbehaves
or ignores commitments made.
However, we should not let our frustration with the benefits of
engagement lead us to undermine that policy by delaying or denying PNTR
in a vain quest to change China overnight. PNTR is not a ``reward'', as
the opponents of PNTR suggest. It is a key element in our economic
engagement with China and an affirmation of our intention to have a
normal trading relationship with China, as we do with the overwhelming
majority of our other trading partners. Many of China's most outspoken
critics including Martin Lee, the head of Hong Kong's Democratic Party,
Bao Tong, one of China's most prominent dissidents; and Dai Qing, an
engaging writer and environmental activist who was jailed in the wake
of Tiananmen Square for her pro-democracy activities and writings, want
us to give PNTR to China. They want it because they know that drawing
China deeper into the international community's institutions and norms
will promote more change in China over time. As Dai Qing told U.S. when
she testified before the Foreign Relations Committee in July:
``Firstly, PNTR will help to reduce governmental control over economy
and society; secondly, PNTR will help to promote the rule of law; and
thirdly, PNTR will help to nourish independent political and social
forces in China.''
The opponents of PNTR have argued that we are giving up leverage over
China because we are abandoning our annual review of U.S.-China
relations. This argument ignores two critical points: first, there has
been little leverage in the MFN review because China can simply do
business with others; and second, Congress has never revoked the status
in the last 12 years. So how meaningful is this review in reality?
There is nothing in the action we are contemplating here that prevents
Congress from acting in the future, if it so desires. In fact, the
pending legislation sets up a commission to review China's performance
on key issues including human rights and labor rights and trade
compliance so that if Congress wants to act, we will be better informed
at the outset.
This vote on extending PNTR is not a referendum on the China of
today. It is a vote on how best to pursue all of our interests with
China including our economic interests. Extending PNTR will allow the
United States to enjoy economic benefits stemming from the bilateral
agreement negotiated between the United States and China. I am
concerned that critical labor, human rights and environmental
protections were left out of the agreement. However, I believe the
agreement undeniably forces China to open its doors to more trade, and
if we fail to vote in favor of PNTR, we risk forfeiting increased trade
with the largest emerging market in the world to other countries in
Europe and Asia.
This would be no small loss for the United States. Just consider the
facts which underscore the importance of trade with China. By granting
PNTR status to China, the U.S. will be able to avail itself to China--
to make American goods and services available to one-fifth of the
world's population. China is the world's second largest economy in
terms of domestic purchasing power. It is the world's seventh largest
economy in terms of Gross Domestic Product and is one of the fastest
growing economies in the world. Simply put, China's economy is simply
too large to ignore.
It is of course true that there has been sharp growth in the U.S.
trade deficit with China, which surged from $6.2 billion in 1989 to
more than $68 billion in 1999. But it is also true that the deficit is
in large part due to the fact that China has closed its doors to U.S.
products.
I believe that only by granting PNTR to China will U.S. businesses be
able to open those doors and export goods and services to China, so
that our economy can continue to grow and our workers be fully
employed. U.S. exports to China and Hong Kong now support 400,000
American jobs. Trade with China is of increasing importance in my home
state. China is Massachusetts' eighth largest export market. The
Massachusetts Institute for Social and Economic Research at the
University of Massachusetts calculated that in 1999, Massachusetts
exported goods worth a total of nearly $366 million to China. That
represents an increase in total exports to China of more than 15
percent from the previous year and translates into more jobs and a
stronger economy in my state.
The bilateral trade agreement between the U.S. and China will give
businesses in every state the chance to increase their exports to
China, ultimately leading to more growth here at home. Under the
agreement, China is committed to reducing tariffs and removing non-
tariff barriers in many sectors important to the U.S. economy. China
has agreed, for instance, to cut overall agricultural tariffs for U.S.
priority products--beef, grapes, wine, cheese, poultry, and pork--from
31.5 percent to 14.5 percent by 2004. Overall industrial tariffs will
fall from an average of 24.6 percent to 9.4 percent by 2005. Tariffs on
information technology products--which have been driving the tremendous
economic prosperity our country is currently enjoying--would be reduced
from an average level of 13.3 percent to zero by the year 2005. China
must also phase out quotas within five years. The U.S. market, on the
other hand, is already open to Chinese products. We have conceded
nothing to China in terms of market access, while China must now open
its doors to increased exports. This is a one-way trade agreement
favoring the United States of America.
China has made other concessions that are likely to be extremely
beneficial to the U.S. economy. It has agreed to open service sectors,
such as distribution, telecommunications, insurance, banking,
securities, and professional services to foreign firms.
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China has agreed to reduce restrictions on auto trade. Tariffs on autos
will fall from 80-100 percent to 25 percent by 2006, and auto quotas
will be eliminated by 2005. Perhaps most importantly, the agreement and
this legislation provide that China must accept the use by the United
States of safeguard, countervailing, and antidumping provisions to
respond to surges in U.S. imports from China that might harm a U.S.
industry.
A favorable vote on PNTR will also benefit the agriculture industry.
China is already the United States' sixth largest agricultural export
market, and that market is expected to grow tremendously in the 21st
century. China is a major purchaser of U.S. grain, meat, chicken, pork,
cotton and soybeans. In the next century, USDA projects China will
account for almost 40 percent of the growth in U.S. farm exports.
We must recognize that the U.S. will not be able to sell its wheat,
provide its financial services, or market its computer software in
China unless we grant China PNTR status. Let there be no mistake, China
will become a member of the WTO whether or not we pass PNTR. Under the
Jackson-Vanik Amendment to the Trade Act of 1974, the United States can
and does extend Normal Trade Relations treatment to China annually. If
Congress fails to amend its laws to provide permanent, rather than
annual, normal trade relations, we will not be able to satisfy the
requirement that normal trade relations be unconditional. The U.S.-
China agreements could therefore not be enforced and the U.S. would not
be able to avail itself to the dispute resolution procedures of the
WTO.
The benefits of the WTO agreement extend beyond more open Chinese
markets to the application of a rules-based system to China, a country
that has historically acted outside the world's regulations and norms.
Under the terms of this agreement, the Chinese government is obliged to
publish laws and regulations subjecting some of China's most important
decisions to the review of an international body for the first time.
WTO membership will force China to accelerate market-oriented economic
reforms. This will be a difficult and challenging task for China, but
an important one that will result in freer and fairer trade with China.
Despite the likely benefits that the United States will reap if it
grants PNTR to China, we must pay attention to the concerns expressed
by those in the labor, environmental and human rights communities about
the impact of this vote. We must hear their voices and heed their
warnings so that we are on alert in our dealings with China. In China,
workers cannot form or join unions and strikes are prohibited. There
are no meaningful environmental standards and the prevalent use of
forced labor make production in China extremely inexpensive. Because
they cannot bargain collectively, Chinese workers are paid extremely
low wages and are subject to unsafe working conditions.
No one on either side of the aisle, not even the most ardent
supporter of PNTR, supports these most undemocratic, morally
reprehensible conditions in China, and we have a duty and a
responsibility to pay attention to the conditions there. It is my hope
and belief that as U.S. firms move into China, they will bring with
internationally-accepted business practices that may actually raise
labor and environmental standards in China. I also hope that they will
provide opportunities for Chinese workers to move from state-owned to
privately-owned companies, or from one private company to another,
where the conditions are better. These steps are small, but important.
Nevertheless, the international community in general and the United
States in particular must remain vigilant in order to ensure that
standards are rising in China and it is simply not the case where the
only benefit to come from freer trade with China is that the corporate
coffers of large companies are being lined with money saved on the
backs of Chinese laborers.
We must also be vigilant in ensuring that once China becomes a member
of the WTO, it complies with the rules of the WTO and lives up to its
commitments under trade agreements. There are many critics of PNTR with
China who rightly point out that China has an extremely poor record of
compliance with current trade agreements with the U.S., and that it
``can't be trusted'' to live up to commitments once it is in the WTO.
China's trading partners worldwide must cooperate to police China so as
to ensure its adherence to the trade concessions it has made.
The environment is another area in which we must be vigilant in our
efforts to encourage the Chinese government to begin to promulgate and
enforce environmental standards. Right now, levels of air pollution
from energy and industrial production in Shanghai and Shenyang are the
highest in the world. Water pollution in regions such as Huai River
Valley is also among the worst in the world. In 1995, more than one
half of the 88 Chinese cities monitored for sulfur dioxide were above
the World Health Organization guidelines. It is estimated that nearly
178,000 deaths in urban areas could be prevented each year by cleaner
air. We simply cannot allow this complete degradation of the
environment in China to continue unabated.
Denying PNTR to China won't stop its unfair labor practices or its
environmental devastation. So while I would have liked to see these
issues addressed in this legislation or in the bilateral agreement, I
believe that, on balance, the risk of not engaging China at this time
far outweighs any value we would gain by signaling to China that we
still do not approve of its practices and policies. That symbolic
signal would only strip U.S. of the leverage that WTO membership brings
with it to hold China accountable and effect real progress. If the U.S.
fails to support PNTR, and thus fails to take advantage of the benefits
of China's inevitable membership in the WTO, U.S. companies stand to
lose market share and U.S. workers may lose jobs to European and Asian
companies that gain a strong foothold in China. We would also lose the
opportunity to engage China and advance our positions on all of our
interests including human rights and security. And that would be far
too high a price to pay in this new global economy for the short term
rewards of merely sending a message with far more negative consequences
for U.S. than for China.
Engagement, is the course we must pursue--intelligently, with
strength and a commitment to accountability. Engagement is a course
best pursued by granting China Permanent Normal Trade Relations and
bringing it into the WTO. It is in the best interests of our economy
and it is in the best interests of our foreign policy, and I hope we
can all join together in moving the United States Senate and our Nation
in that direction.
Mr. BINGAMAN. Mr. President, I rise today to discuss the amendments
that have been voted on in relation to H.R. 4444, a bill that
authorizes permanent normal trade relations with China. Over the last
two weeks or so, several of my colleagues have introduced very
thoughtful legislation specifically designed to address problems that
exist at this time in China. Taken alone and at face value, many of
these amendments--from human and labor rights to technology transfer to
religious freedom to weapons proliferation to clean energy--have been
worthy and deserving of my support. At any other time, I would have in
fact voted for many of these amendments. I personally am of the view
that Chinese officials must continue to make significant and tangible
efforts in the future to transform their country's policies to coincide
with international rules and norms. Although China is indeed making a
very difficult and gradual transition to a more democratic society and
a market-based economy, much remains to be done. Chinese officials must
reinvigorate their commitment to change, and they will inevitably be
open to criticism from both the United States and the international
community until they do so.
But this said, it is clear that any amendment attached to H.R. 4444
at this time will force the bill into conference, and at this late
stage in the session, that means that the bill would effectively be
dead. In my mind, this bill is far too important to have this outcome.
I believe that H.R. 4444 is one of the most important pieces of
legislation we will consider this year, for two reasons.
First, it creates new opportunities for American workers, farmers,
and businesses in the Chinese market. This
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bill is not about Chinese access to the U.S. market as this already
exists. The bill is about U.S. access to the Chinese market, because if
this bill is passed we will see a significant change in the way China
has to conduct business. As a result of this bill, we will over time
see a reduction in tariff and non-tariff barriers, liberalization in
domestic regulatory regimes, and protections against import surges,
unfair pricing, and illegal investment practices. If we do not take
action on this bill this year, we will be at a tremendous competitive
disadvantage in the Chinese market relative to companies from other
countries.
We cannot let this happen to American workers. In my state of New
Mexico alone we have seen dramatic results from increased trade with
China. Our exports to China totaled $147 million in 1998, up from
$366,000 in 1993. China was New Mexico's 35th largest export
destination in 1993, but now it ranks fourth in this regard. In 1993
only six product groups from New Mexico were heading to China as
exports, but in 1998 there were sixteen product groups flowing in that
direction, from electrical equipment and components to chemicals to
agriculture to furniture. In short, increased trade opportunities with
China translates directly to increased economic welfare for New Mexico,
and all of the United States.
A second reason this legislation is so important relates to U.S.
national security. From where I stand, China is playing an increasingly
active role in Asia and the world, and it is in our national interest
to engage them in discussions concerning these activities on an ongoing
and intensive basis. There is simply no benefit to be gained from
attempting to isolate or ignore China at this time. It has not worked
in the past, and it will not work in the future. I am convinced that
our failure to pass this bill will limit our country's ability to
influence the direction and quality of change in China. I have visited
China, and I can tell you that the China of today looks dramatically
different than the China of five years ago. This change is at least in
part a direct result of our interaction with the Chinese people. As the
PNTR debate moves forward, Congress must decide how it would like China
to look five, ten, fifteen, twenty years from now. Do we want China to
be a competitor, or an enemy? In my view, PNTR will place us in a
particularly strong position to promote positive change in China and
increase our capacity to pursue our long-term national interest.
Although I am certainly sympathetic to the objectives of many of the
amendments offered by my colleagues, I feel the issue of trade with
China deserves to be debated on its own merits. For this reason, I have
chosen to vote against the amendments offered by my colleagues. But I
would like to emphasize at this time that I look forward to the
opportunity to address them in the future.
Mr. DORGAN. Mr. President, several months ago, the House of
Representatives voted 237 to 197 to grant Permanent Normal Trade
Relations to China. Before passing that legislation, however, the House
added provisions that will require this and future Administrations to
step up efforts to enforce China's compliance with its trade agreements
and with internationally-recognized human rights norms.
Today the Senate will vote on whether we too will approve granting
PNTR to China. That vote is on the limited question of whether to make
permanent the favorable trade treatment that the United States has
afforded to China one year at a time for the past 20 years--just that,
and only that. The only difference in this upcoming vote and past votes
on normal trade relations for China is: Shall normal trade relations be
permanent, as they are with virtually every one of our other trading
partners?
I have voted for normal trade relations in the past because China is
a country of 1.3 billion people that is certain to play an important
role in our future. The question is, will that role be a positive or
negative one?
I happen to think that involvement with China is preferable to non-
involvement. And I think on balance that the movement of China towards
more freedom for its citizens and a market-based economy is much more
likely to occur through normal trade relations than through
estrangement.
While it is a close call, I have concluded that it is in our best
interests to accord China Permanent Normal Trade Relations, because the
legislation also establishes a commission to monitor human rights and
labor issues in China and includes provisions that will ensure better
enforcement of our trade agreements.
I would like to explain my reasoning.
I am mindful that there are some actions by China that give us pause.
Threats directed at Taiwan, the transfer of missile technology to rogue
states, and the abuse of human rights inside China are all reasons for
concern. But I have seen almost no evidence that there has been any
connection between Chinese behavior and Congress' annual review of
China's trade status. On the other hand, there is evidence that the
engagement with China by Western democracies has led to some
improvement in a number of areas. It is my hope that those improvements
will continue and be enhanced with Permanent Normal Trade Relations and
China's accession to the WTO.
I am under no illusion that granting PNTR to China and allowing it to
join the WTO will lead China inexorably toward democratization, better
human rights and economic liberalization. However, I find it notable
that China's security services, and conservative members of the
military and Communist Party feel threatened by those developments.
They are leading the opposition to President Zhang Zhemin and Premier
Zhu Rongji's efforts to restructure China's economy and join the WTO
precisely because they fear it will weaken the Communist Party's
absolute hold on power.
The Dalai Lama and many of China's leading democracy and human rights
advocates support Permanent Normal Trade Relations. They believe that
the closer the economic relationship between the U.S. and China, the
better the U.S. will be able to monitor human rights conditions in
China and the more effectively the U.S. will be able to push for
political reforms. However, other human rights advocates, including
Harry Wu, believe granting China PNTR will weaken America's ability to
influence China's human rights. That is why it is so important that the
PNTR legislation establish a commission to monitor the human rights and
labor situation in China and suggest ways we can intensify human-rights
pressure on Beijing.
Most of the farm groups and business groups from my state believe
PNTR and the implementation of the U.S.-China Bilateral Trade Agreement
will result in a significant rise in U.S. exports to China. I hope that
is true. But I fear they will be disappointed. Most impartial studies
have concluded that the gains are likely to be modest. Furthermore, I
am concerned by comments which were made by China's lead trade
negotiator that China has conceded only a ``theoretical'' opportunity
for the U.S. to export grain or meat to China. This makes me wonder
whether China has any real intention of opening its markets as
contemplated in the bilateral agreement. That is why it is so important
that the PNTR bill includes provisions that will require the
administration to step up its efforts to ensure that China complies
with its trade agreements.
The systemic trade problems we are experiencing with China and many
other countries, including Japan, Europe, and Canada, have little to do
with this debate about Normal Trade Relations and a lot to do with our
willingness to give concessional trade advantages to shrewd, tough,
international competitors at the expense of American producers.
Frankly, I am tired of it.
The recent U.S.-China Bilateral Trade Agreement was hailed as a giant
step forward. In fact, it comes up far short of what our producers
ought to be expecting in such agreements. If we were given a vote on
that agreement, I would likely vote no, and tell our negotiators to go
back and try again.
Our negotiators should have done better. It is outrageous that they
signed an agreement that allows China, which already has a $70 billion
merchandise trade surplus with the United States, to protect its
producers with tariffs on American goods that are two to ten times
higher than the tariffs we charge on Chinese goods. There is no excuse
for that. But that circumstance
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is not unique to China. It exists in our trade relations with Japan,
with the European Union, with Canada, and others. We now have a
mushrooming merchandise trade deficit that is running at an annual $400
billion-plus level. It is unsustainable and dangerous for our country.
We must begin to negotiate trade agreements with our trading partners
that are tough, no nonsense agreements. We should develop rules of fair
trade that give American workers and American businesses a fair
opportunity to compete.
Regrettably most of our trade policies reward those corporations that
want to produce where it's cheap and sell back into our marketplace.
That is a recipe for weakening our economy and it must stop.
So, I voted for Normal Trade Relations with China previously, and I
intend to vote to make it permanent, provided that we also require this
and future Administrations to dramatically step up efforts to enforce
China's compliance with its trade agreements and with internationally-
recognized human rights norms.
However, I want it to be clear that, if we accord Permanent Normal
Trade Relations to China and we discover that they are not in fact
complying with the terms of the bilateral agreement we negotiated with
them or that they are retreating rather than progressing on the issue
of human rights for Chinese citizens, then I believe we must reserve
the right to revoke China's Normal Trade Relations status.
Mr. LUGAR. I would like to ask the distinguished chairman of the
Finance Committee, Senator Roth, a brief question. Mr. Chairman, there
are a number of important initiatives and oversight capabilities
created in this legislation on PNTR. Not only do we make permanent our
trading relationship with China, but we have included monitoring
capabilities to ensure that the commitments agreed to in the WTO
accession agreements are, in fact, lived up to by the Chinese
government.
Mr. ROTH. The Senator from Indiana is correct.
Mr. LUGAR. I would like to then clarify that the bill before us
should not only provide means to review WTO trade compliance, but also
past agreements affecting trade between our countries, whether they are
treaties or memorandum of agreements between the United States and
China. Is this correct, Mr. Chairman?
Mr. ROTH. The Senator is correct.
Mr. LUGAR. Thank you, Mr. Chairman. I would like then to state here
that it is the intent of the bill that there be a review of the
implementation of the 1992 Memorandum of Agreement between the United
States and China on the Protection of Intellectual Property Rights. As
you know, this agreement was reached so that American pharmaceutical
compound patents issued between 1986 and 1993 would enjoy protection in
China. As a number of disputes have arisen from this agreement, I think
it is important that we have an independent and objective look at this
agreement and then we can determine if additional efforts in this area
are warranted.
Mr. ROTH. I thank the Senator. It is my intent, as his, that the 1992
MOU shall also be reviewed.
Mr. LUGAR. I thank the distinguished Chairman.
Mr. ENZI. Mr. President, I rise to speak in favor of the bill to
extend permanent normal trade relations to China. I have taken a great
deal of time to study both the positive and negative aspects of
granting PNTR to China. I was undecided on which way to vote for quite
some time. I met with and talked to those on both sides of the issue.
Although I had several concerns, my biggest were about the reports of
religious persecution and other human rights violations that continue
to occur in China. It certainly is not fair that anyone--let alone 20
percent of the world's population--live under this kind of injustice.
We in America, a great land of freedom and liberty, find these abuses
intolerable and inexcusable. Although human rights have improved over
the past 20 years since China has opened up its market to the world, it
has a great deal of progress to make.
I care deeply about many of the issues that have been raised
throughout this debate. And I pledge to continue working to ensure that
these issues are not forgotten. The evils that the communist government
of China perpetuates, such as forced abortion, organ harvesting,
religious persecution, weapons proliferation, and the like, should
still be addressed. We must do everything we can to not only bring
China into the world trading system, but also into the system of
international norms, which recognizes the value of human life and
rights.
After carefully weighing the issues I decided to support passage of
this bill. I also decided it was such an important bill for American
and Chinese citizens that it should be passed this year.
This caused me to be in the position of voting against several
amendments that in any other situation I would have supported. I know
several of my other good friends and colleagues did the same.
Now I want to explain some of the conclusions I have reached.
First, the recently signed U.S.-China trade agreement does not
require the U.S. to make any concessions. It does not lower tariffs or
other trade barriers for Chinese products coming into America. Instead,
it forces China to open its market to U.S. goods and services provided
the Congress extends PNTR to China. Passage or failure of this bill
does not determine whether or not China becomes a member of the WTO.
However, since the WTO requires that members treat each other in a non-
discriminatory manner, each member country must grant other members
permanent normal trade relations. Therefore, if China is not granted
PNTR, it is not obligated to live by its WTO trade and market-opening
commitments made to the United States.
As I mentioned earlier, China's regime has a poor track record when
it comes to the human rights of its more than 1 billion citizens. It
still has a long way to go to become acceptable. But the United States
should not isolate the people of China from the exchange of information
and products. We should not impede the efforts of Chinese citizens to
trade and exchange property, which is an essential aspect of a free
society.
The gradual opening of the Chinese market in recent years has been
accompanied by very slow, yet positive advancements for religious
freedoms in China. For example, consider the comments of Nelson Graham,
son of the Reverend Billy Graham and President of East Gates
International, a Christian non-profit organization. In his testimony at
the Senate Finance Committee earlier this year he said, ``I believe
that granting China PNTR will not only benefit U.S. businesses and
U.S.-based religious organizations but will be one step further toward
bettering the relationship between our countries.''
He went on to add that the impact of China's increased trade
relations with the West has already caused a ``proliferation of
information exchange [that] has allowed us to be much more effective in
developing and organizing our work in the [People's Republic of
China].''
These and similar comments by other religious leaders have led me to
believe that increased trade will help the work of these religious
organizations and help promote greater freedoms in China. Prior to the
gradual market opening of China, religious organizations like Nelson
Graham's East Gates International, had little or no way of reaching the
spiritually-starved Chinese people.
I also want to emphasize that this bill in no way ignores the
importance of religious and human rights. It sets up a permanent
Commission to monitor human and religious rights and the development of
rule of law and democracy-building in China. This Commission will have
similar responsibilities as the existing Commission on Security and
Cooperation in Europe established in 1976, which has proven effective
in monitoring and encouraging respect for human rights in Eastern
Europe.
Mr. President, at the conclusion of my remarks I will ask unanimous
consent that four letters and one op-ed piece I have be inserted into
the Record. Three of the letters are written by the Reverend Billy
Graham, Joe Volk of the Friends Committee on National Legislation, and
Pat Robertson of the Christian Broadcasting Network.
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The other letter is from thirty-two religious leaders representing a
broad range of religious organizations. the op-ed was written by Randy
Tate, former Executive Direction of the Christian Coalition, and was
published in the Washington Times last year. Each communication makes
the point that PNTR will benefit U.S. religious organizations with
operations in China.
I do not pretend that improvements in religious and human rights in
China will happen overnight. Progress in liberty will not be immediate
in a country where the government owns most of the property and has
strict limits on political and religious association. Not one of us in
this body would create a political regime such as that currently
operating in China if we were cutting from whole cloth. Unfortunately,
history rarely presents such ideal circumstances. Instead, we must
address the world as we find it with all its imperfections.
I believe the question each of us must ask ourselves is whether human
and religious rights will be improved by refusing China permanent
normal trade relations. I see no evidence this would be the case.
Rather, I believe that the increase in economic freedom that comes
through increased trade relations will, in turn, bring about greater
religious freedom and a better environment for human rights as well.
Randy Tate probably summed up this issue best. He said:
Our case for greater trade . . . is less about money and
more about morality. It is about ensuring that one-fifth of
the world's population is not shut off from businesses
spreading the message of freedom--and ministries spreading
the love of God . . . [I]s it any surprise that some of our
nation's most respected religious leaders, from Billy Graham
to Pat Robertson, have called for keeping the door to China
open?
I also want to briefly discuss another serious issue which was raised
during the PNTR debate--the proliferation of weapons of mass
destruction by China. While I recognize the sometimes delinquent
behavior of China in this area, I believe the amendment which failed
used a flawed unilateral and inflexible approach. I want to see the
elimination of the proliferation of weapons of mass destruction. But
the President currently has ample authority to sanction foreign
entities for proliferation under numerous statutes. Therefore, the
problem we now have is a failure by this Administration to effectively
deal with the Chinese government to eliminate this proliferation. Some
very targeted sanctions were probably in order for some of the Chinese
proliferation activity.
But the amendment that was offered would have prescribed a very rigid
one-size-fits-all solution. And we must remember that the most
effective sanctions are those that are multilateral and those that have
general agreement among our allies. The amendment would have required
unilateral sanctions which history has shown to be ineffective tools in
achieving desired behavior.
I do not believe that trade will cure all of the problems we have
with China. Moreover, PNTR should not be considered a gift to China,
but rather a challenge for China. The U.S. market is already open to
countless Chinese goods. This will not change even if we were to refuse
PNTR to China. Instead, if Congress extends PNTR to China it must open
its market to the United States. At the same time China must play by
the rules of the international trading system, subjecting itself to the
WTO's dispute settlement process.
Without PNTR, China can remain closed to U.S. products yet increase
its exports to the U.S., further exacerbating our trade deficit with
China. This bill is about getting our products into China. By
cooperating with them, they will lower tariffs to get into the WTO and
then we have a court to adjudicate their violations. PNTR simply allows
fair treatment of U.S. products and services going to China once China
enters the WTO.
Change will not happen instantly. But I do believe increased trade
will help advance the cause of freedom in China. The policy of
engagement through trade must be backed up by strong U.S. leadership
that vigorously challenges China, on a bilateral basis and through
international organizations, about its human rights, weapons
proliferation and other obvious shortcomings. But a vote against PNTR
doesn't hurt the hard-line communists in China nor does it help the
cause of human rights in China. The best way to end these evils is to
transform China into a politically and socially free country. And that
transformation will begin with economic freedom. Approving PNTR for
China is the next and most important step toward a freer China and a
safer world.
Mr. President, I ask unanimous consent to have additional material
printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
Opening China's Economy
wto membership will benefit all
(By Randy Tate)
When trade ministers of World Trade Organization member
nations gather in Seattle this week, they will comprise the
largest gathering of trade officials on U.S. soil since the
Bretton Woods conference at the conclusion of World War II.
The world has dramatically changed in the intervening half-
century Astounding technological advances since then have
made us not only comfortable but nonchalant toward
international communication. But not so when it comes to
trade. Here some still see an insoluble dilemma; choosing
between American interests and American ideals. By this
argument, we must either engage in commerce with emerging
economic giants like China, or forsake trade in standing up
for democratic values and human rights.
Fortunately, many conservative and religious leaders are
rejecting this false choice and are now charting a third
course. They recognize that trade and cultural exchange does
not hinder but rather advances the value of free minds and
hearts.
All Americans of good faith can start from this point of
agreement. We must stand firm in our support of democracy and
the inalienable rights to liberty. We all condemn abhorrent
acts such as the bloody suppression of freedom in the
Tiananmen Square massacre. And there are many ways of
expressing that condemnation: tough diplomacy military
containment, and hard-headed realism are among them. But
isolation and protectionism would be misguided, and
ultimately counterproductive.
A fifth of the planet's population lives in China. It makes
no sense to isolate 1.3 billion people from the rest of us.
That will only encourage irresponsible commercial and
political behavior, at home and abroad. Our goals should
be to open Chinese markets to our products and services
while opening up Chinese society to freedom. That is the
way to give its citizens the real opportunity to breathe
the liberating air of faith and democracy.
It would be nice of course, if the Chinese leadership did
that on its own initiative. But that is a fantasy. An
isolated China will resist change at home and be likely to
behave more aggressively towards its regional neighbors. None
of that serves American interests. Admitting China into the
WTO may not cause it to shed dictatorship for democracy. But
it's the right step towards realizing that goal.
Nothing unites a nation and diverts the attention of the
people from abuses by its leader like a common enemy. Do we
slam the door on 1.3 billion people and let Chinese leaders
turn America into the villain? Economic adversaries too often
evolve into military enemies, as the origins of World War II
amply demonstrated. The hatred of 1.3 billion people is
surely something to incur with great caution.
The bottom line is that America needs to have a seat at the
negotiating table to push for further democratic and
religious reforms in countries such as China. Shutting our
doors and abandoning all that we've helped the Chinese people
accomplish would make us part of the problem. Moreover, we
have to recognize that even a U.S. embargo is not going put
the Chinese out of business. Bringing China into the WTO
makes them play by the same trade rules as the rest of the
world, and this policy decision makes up part of the
solution.
While moving forcefully to strengthen a trading partnership
with China, America needs to send a strong signal that it
will stand by historic allies and functioning democracies
like Taiwan. We have strong moral obligations to preserve
democracies. Admitting Taiwan to the WTO as well accomplishes
that. This leaves open political issues for the future, such
as finding ways to ensure that freedom and democracy survive
and prosper in Taiwan while forging a stable environment
as it works out its future relations with China.
Our case for greater trade, therefore, is less about money
and much more about morality. It is about ensuring that one-
fifth of the world's population is not shut off from
businesses spreading the message of freedom--and ministries
spreading the love of God.
Obviously our key commitment is to helping American working
families. That provides the most powerful argument for
strengthening commercial ties with China by admitting China
into the WTO. The agreement negotiated has its imperfections,
but there is no question that it makes dramatic improvements
in opening up domestic Chinese markets.
For example, China will now reduce subsidies on
agricultural products, which allows opportunities for
American-grown products
[[Page S8697]]
such as wheat and apples to reach a gargantuan market to a
degree never considered possible before. Especially in the
framing communities of my home state of Washington, the
prospect of increased access to a market of this magnitude
has sparked new hope in households struggling to make ends
meet.
Working families dependent upon manufacturing jobs also
benefit. Thanks to last week's agreement China will be forced
to cut tariffs on American goods an average of 23 percent and
to protect, and to protect the excellence and innovation of
U.S. software manufacturers against technological piracy.
Is it any surprise that hundreds of working families will
gather next week in Seattle to show their support for
strengthening international trade? Not at all. Nor is it any
surprise that some of our nation's most respected religious
leaders, from Billy Graham to Pat Robertson, have called for
keeping the door to China open. For when the Chinese trade
with Americans, they are also exposed to the values of
freedom and the healing message of the Gospel. And nothing is
more important than that.
____
Statement by Religious Leaders in Support of Permanent Normal Trade
Relations with China
September 5, 2000.
Dear Senator, Soon you will be asked to vote on an issue
that will set the course for U.S.-China relations for years
to come: enacting Permanent Normal Trade Relations (PNTR)
with China. Your vote will also have an impact on how human
rights and religious freedom will advance for the people of
China in the years ahead. We are writing to urge you to vote
for PNTR for China because we believe that this is the best
way to advance these concerns over the long term.
We share your concern for advancing human rights and
religious freedom for the people of China. The findings of
the recent report from the U.S. International Religious
Freedom Committee are disturbing to us. Clearly, the Chinese
government still has a long way to go.
The question for us all is: What can the U.S. government do
that will best advance human rights and religious freedom for
the people of China? Are conditions more likely to improve
through isolation and containment or through opening trade,
investment, and exchange between peoples?
Let us look first at what has already occurred within China
over the past twenty years. The gradual opening of trade,
investment, travel, and exchange between China and the rest
of the world has led to significant, positive changes for
human rights and religious freedom in China. We observe the
following:
The number of international religious missions operating
openly in China has grown rapidly in recent years. Today
these groups provide educational, humanitarian, medical, and
development assistance in communities across China.
Despite continued, documented acts of government
oppression, people in China nonetheless can worship,
participate in communities of faith, and move about the
country much more freely today than was even imaginable
twenty years ago.
Today, people can communicate with each other and the
outside world much more easily and with much less
governmental interference through the tools of business and
trade: telephones, cell phones, faxes, and e-mail.
On balance, foreign investment has introduced positive new
labor practices into the Chinese workplace, stimulating
growing aspirations for labor and human rights among Chinese
workers.
These positive developments have come about gradually in
large part as a result of economic reforms by the Chinese
government and the accompanying normalization of trade,
investment, and exchange with the outside world. The
developing relationships between Chinese government
officials, business managers, workers, professors, students,
and people of faith and their foreign counterparts are
reflected in the development of new laws, government
policies, business and labor practices, personal freedom, and
spiritual seeking. Further, the Chinese government is much
more likely to develop the rule of law and observe
international norms of behavior if it is recognized by the
U.S. government as an equal, responsible partner within the
community of nations.
The U.S. government and governments around the world have a
continuing, important role to play in challenging one another
through international forums to fully observe standards for
human rights and religious freedom. However, we do not
believe that the annual debate in the U.S. Congress, linking
justifiable concern for human rights and religious freedom in
China to the threat of unilateral U.S. trade sanctions, has
been productive toward that end.
Change will not occur overnight in China. Nor can it be
imposed from outside. Rather, change will occur gradually,
and it will be inspired and shaped by the aspirations,
culture, and history of the Chinese people. We on the outside
can help advance religious freedom and human rights best
through policies of normal trade, exchange and engagement for
the mutual benefit of peoples of faith, scholars, workers,
and businesses. Enacting permanent normal trade relations
with China is the next, most important legislative step that
Congress can take to help in this process.
Sincerely,
Organizations listed for identification purposes only.
Dr. Donald Argue, (Former President, National Association
of Evangelicals, representing 27 million Christians in the
United States of America).
John A. Buehrens, (Unitarian Universalist Association).
Bruce Birchard, (Friends General Conference).
Myrrl Byler, (China Education Exchange, Mennonite Church).
Reverend Richard W. Cain, ((Emeritus) President, Claremont
School of Theology).
Ralph Covell, (Senior Professor of World Christianity,
Denver Seminary).
Charles A. Davis, PhD, (The Evangelical Alliance Missions).
Father Robert F. Drinan, (Professor, Georgetown University
Law Center; Member of Congress, 1971-1981).
Samuel E. Ericsson, (President, Advocates International, a
faith-based global network of lawyers, judges, clergy, and
national leaders reaching over 100 nations for justice,
reconciliation, and ethics with offices on five continents).
Nancy Finneran, (Sisters of Loretto Community).
Brent Fulton, (President, ChinaSource, a non-profit,
Christian Evangelical organization connecting knowledge and
leaders in service to China).
Dr. Richard L. Hamm, (Christian Church (Disciples of
Christ)).
Kevin M. Hardin, (University Language Services).
J. Daniel Harrison, (President, Leadership Development
International).
Bob Heimburger, (Professor (Ret.), Indiana University).
Rev. Earnest W. Hummer, (President, China Outreach
Ministries).
John Jamison, (Intercultural Exchange Network).
Rudolf Mak, Ph.D., (Director of Chinese Church
Mobilization, OMF International).
Jim Nickel, (ChinaSource, a non-profit, Christian
Evangelical organization connecting knowledge and leaders in
service to China).
Don Reeves, (General Secretary (Interim), American Friends
Service Committee).
Rabbi Arthur Schneier, D.D., (President, Appeal of
Conscience Foundation).
Phil Schwab, (ChinaTeam International Services, Ltd.).
Dr. Stephen Steele, (Dawn Ministries).
Rev. Daniel B. Su, (Special Assistant to the President,
China Outreach Ministries).
Bishop Melvin G. Talbert, (The United Methodist Church).
Dr. James H. Taylor III, (President, MSI Professional
Services International).
Finn Torjesen, (Executive Director, Evergreen Family
Friendship Service, a Christian, non-profit, public benefit
organization working in China).
Joe Volk, (Executive Secretary, Friends Committee on
National Legislation).
Rev. Dr. Daniel E. Weiss, (American Baptist Churches, USA).
Dr. Hans M. Wilhelm, (China Partner, an organization
serving Church of China by training emerging young leaders).
Rev. Dr. Andrew Young, (President, National Council of
Churches, former ambassador to the United Nations and member
of Congress).
Danny Yu, (Christian Leadership Exchange).
____
Montreat, NC,
May 12, 2000.
Hon. David Dreier,
House of Representatives,
Washington, DC.
Dear Congressman Dreier: Thank you for contacting me
concerning the People's Republic of China. I have great
respect for China's long and rich heritage, and I am grateful
for the opportunities I have had to visit that great country.
It has been a tremendous privilege to get to know many of its
leaders and also to become familiar with the actual situation
of religious believers in the P.R.C.
The current debate about establishing Permanent Normal
Trade Relations with China raises many complex and difficult
questions. I do not want to become involved in the political
aspects of this issue. However, I continue to be in favor of
strengthening our relationship with China. I believe it is
far better for us to thoughtfully strengthen positive aspects
of our relationship with China than to treat it as an
adversary. In my experience, nations can respond to
friendship just as much as people do.
While I will not be releasing a formal public statement on
the PNTR debate, please feel free to share my views with your
colleagues. May God give you and all of your colleagues His
wisdom as you debate this important issue.
Cordially yours,
Billy Graham.
____
The Christian
Broadcasting Network Inc.,
Virginia Beach, VA, May 10, 2000.
Hon. Joseph R. Pitts,
Congress of the United States, House of Representatives,
Washington, DC.
Dear Congressman Pitts: My experience in dealing with
Mainland China goes back to my first visit to that nation in
1979. Since that time, I have learned on subsequent visits
that the progress of Mainland China in regard to economic
development and the amelioration of the civil rights of its
citizens has been dramatic.
[[Page S8698]]
I do not minimize the human rights abuses which take place
in the People's Republic of China, but I must say on first-
hand observation that significant progress in regard to
religious freedom and other civil freedoms has been made over
thepast twenty-one years.
The population of China is the largest in the world. My
sources indicate that there are at least 80 million Chinese
who are Christian believes, and tens of millions of Chinese
are either practicing Buddhists or practicing Muslims.
Although the Chinese government may not comport itself in
the same fashion as we in America would desire, nevertheless,
I believe that the economic and structural reforms begun by
Chairman Deng Xiaoping are irreversible and that little by
little this vast land is moving toward a more prosperous
society and more individual freedom.
If the US refuses to grant normal trading relations with
the People's Republic of China, and if we significantly
curtail the broad-based economic, education, social, and
religious contacts that are being made between the US and
China, we will damage ourselves and set back the cause of
those in China who are struggling toward increased freedom
for their fellow citizens.
Therefore, I would urge the Congress to pass legislation
which would normalize the trading relations with the People's
Republic of China without, in any way, diminishing the desire
of the US to encourage the sanctity of human rights and the
rule of law in that nation.
With best wishes, I remain . . .
Sincerely,
Pat Robertson,
Chairman of the Board and
Chief Executive Officer.
____
Friends Committee
on National Legislation,
Washington, DC, September 7, 2000.
Re Support permanent normal trade relations with China
without amendment
Dear Senator: Soon you will be asked to decide whether the
enact Permanent Normal Trade Relations (PNTR) with China. We
at the Friends Committee on National Legislation (FCNL)
recommend that you vote for enacting PNTR with China (HR
4444) without amendment.
While we do not claim to represent all Friends (Quakers) on
this challenging and complex issue, the governing body of
FCNL is clear in its support for PNTR with china. This policy
is fully consistent with FCNL's historic advocacy in
opposition to Cold War policies of containment and in support
of policies that further interdependence, cooperation, and
the pacific resolution of disputes between countries through
diplomacy between governments, and free trade, travel and
exchange between peoples.
We share your concern for advancing human rights, religious
freedom, labor rights, and environmental protection for the
people of china. We are concerned about the impact of
economic globalization on the standard of living and quality
of life for workers both at home and abroad. We are also
concerned about future cooperation and progress with the
government of China in arms control, regional security,
negotiations concerning the future of Taiwan, and the pacific
settlement of disputes.
We believe that normalization of trade relations with china
is an important step toward advancing all of these basic
human security concerns over the long term. China experts
note that dramatic changes have already occurred within China
over the past two decades as a result of more open exchange
between China and the rest of the world. Interactions between
government officials businesses, universities, and
individuals have led to a growing harmonization between
Chinese institutions and their Western counterparts. This is
reflected in the development of new laws, government
policies, democratic institutions, business and labor
practices, standards of behavior, and popular expectations.
This engagement has also helped indirectly to nurture
movements for social change. The student movement behind the
Tiananmen Square demonstrations, the growing house church and
democracy movements, and the recent widespread nonviolent
demonstrations by the Falun Gong reflect growing movements
within Chinese society that are challenging the political
status quo and expressing popular aspirations for human
rights. These movements likely would not have developed or
spread as quickly were it not for the opening of Chinese
society to the outside world that has occurred over the past
twenty years. Despite the oppressive government responses, it
is unlikely that the Chinese government will be able to
repress popular movements such as these for long--especially
if china continues along the path of economic reform,
development, and integration into the global economy.
Such engagement has led to progress with the Chinese
government on several important international security
issues, as well. Over the same twenty years, the Chinese
government has signed and ratified the Nuclear Non-
Proliferation Treaty and the Chemical Weapons Convention. It
signed and awaits U.S. ratification of the Comprehensive Test
Ban Treaty, and, since then, it has observed a nuclear
testing moratorium. It has participated in the Asian-Pacific
Economic Cooperation Forum in ways that have built confidence
and diminished regional tensions.
It is far more likely that the Chinese government will
cooperate in these areas in the future and observe
international norms of behavior if it is recognized by the
U.S. as an equal partner within the community of nations than
if it is isolated or excluded. Granting PNTR would encourage
continued progress and cooperation in all of these areas of
concern. Conversely, denying PNTR and further isolating China
would likely close many of these opportunities, lead to
increased oppression within China, and undermine regional and
international security.
Please vote to enact PNTR with China without amendment.
This is the next, most important legislative step that you
can take to further positive relations between the peoples
and governments of the U.S. and China.
Sincerely,
Joe Volk,
Executive Secretary.
Mr. GORTON. Mr. President, for the past eight years, the
responsibility to extend annual trade status to the People's Republic
of China, PRC, has been shouldered entirely by the U.S. House of
Representatives. Even though the United States Senate has eluded the
duty of debating and deciding upon this significant issue, not one year
has gone by when the subject matter hasn't weighed heavily on my mind.
If one year ago you had questioned any number of business or trade
entities in Washington state my position on the prospect of extending
Permanent Normal Trade Relations, PNTR, to China, I can almost
guarantee you would have received a non-committal response. For years I
have questioned China's commitment to free trade with the United
States, and have been critical of the notion that the U.S. continue a
relationship of ``engagement'' with the PRC. Couple these concerns with
allegations of espionage, nuclear non-proliferation, questionable
campaign contributions and influence, human rights abuses, persecution
of religious freedom, and the treatment of the one true Chinese
democracy, Taiwan, and one might challenge the notion that China
receive such significant trading status from the United States. Mr.
President, these issues have played a significant role in my criticism
of our relationship with China, and therefore maintained an elevated
status as I reviewed the prospect of voting on PNTR.
When I made my final decision regarding China's trade status, the
mere simplicity of the issue suggested a rationale and consideration
based solely on trade ramifications and WTO accession procedures alone.
China's accession to the World Trade Organization is forthcoming, it's
a fact, it's a reality, and it will happen. If the United States does
not grant PNTR to China, the PRC will gain its ambitiously sought seat
in the WTO, and the United States will lose all the benefits of trade
with the more than 1.2 billion inhabitants of China. If Congress does
not pass PNTR, the U.S-China trade deal that was 14 years in the making
will be considered null and void, and every other member of the World
Trade Organization will have access to the world's third largest
economy. The potential loss of trade to the United States, and to the
State of Washington, is too significant to ignore.
If the simplicity of the PRC's accession to the WTO was not enough to
force me to reconsider my stance on trade with China, the details of
the bilateral U.S.-China trade agreement helped secure my final
decision to support PNTR. While I have long been critical of the
Clinton-Gore Administration's policy with respect to China, the
agreement brokered and finalized by U.S. Trade Representative Charlene
Barshefsky is uncomparable.
By granting PNTR to China, the U.S. stands to benefit from a wide
array of trade issues. While the United States retains our valuable
trading leverage in the bilateral agreement and will gain access to a
once heavily guarded market, China is forced to amend its market
strategy and alter its trading exercises in favor of practices that
embrace free market principles. When and if China alters its trading
practices, it's clear the U.S. has everything to gain.
When formulating my decision to support PNTR, it was necessary that I
review and concur with those terms stated in the bilateral agreement.
If the terms were ever called into question by U.S. industry,
manufacturers, agriculture, the service sector, or the high tech
industry, I would seriously reconsider my position.
[[Page S8699]]
However, not one of the aforementioned industries in the State of
Washington outlined an objection to trade with China. According to the
World Bank, China will have to expand infrastructure by $750 billion in
the next 10 years. Washington companies like Boeing, Paacar, and
Mircosoft are prepared to fill their needs. Service sector companies
like Eddie Bauer, Starbucks, and Nordstrom will step up to fill
consumer demands. Not to mention, agriculture can finally attempt to
penetrate the Chinese market that has for so long eluded our
commodities. From the lush orchards of Central Washington to the
rolling wheat fields of the Palouse, agriculture in Washington state is
prepared and stands ready to benefit from the access to the 1.2 billion
consumers in China.
While it was fascinating to me that so many varying industries and
retail companies support PNTR and trade with China, the mere numbers
and degree of tariff reduction contained in the bilateral agreement
persuaded me most.
For example, the U.S. agriculture products that once faced enormous
trade barriers and sanitary and phytosanitary restrictions, will
receive a reduction of tariffs on average from 31.5 percent to 14.5
percent. Access for bulk commodities will be expanded, and for the
first time ever China will permit agriculture trade between private
parties.
What does this mean for Washington state agriculture? For the first
time in over 20 years, China has finally agreed to lift the ominous and
ridiculous phytosanitary trade barrier Washington wheat growers have
learned to hate--TCK smut. As a result of this trade agreement, Chinese
officials traveled to Washington state this spring and secured a tender
for 50,000 metric tons of Pacific Northwest wheat. While this purchase
is nominal, and represents a figure that I will press to increase, the
elimination of export subsidies on wheat has already enhanced the
expansion of markets wheat growers desire.
For some of our most precious and high value commodities such as
apples and pears, tariffs will be reduced from 30 percent to 10
percent. Frozen hash browns, the pride of the Columbia Basin, will
receive tariff reductions from 25 percent to 13 percent. Tariffs on
cheese will plummet by 38 percent; grapes by 27 percent; cherries and
peaches by 20 percent; potato chips by 10 percent; and beef by 33
percent. All of these commodities represent a significant portion of
the Washington state agriculture industry, and at a time when new
markets are difficult to come by, news of China's tariff reduction
promises resulted in waves of support for PNTR by farmers.
Washington state agriculture is not the only sector to gain access to
China's market. As a matter of fact in 1998, direct exports from
Washington to China totaled $3.6 billion, more than double the exports
in 1996. Of that figure, 91 percent represented transportation
equipment, namely aircraft and aircraft parts.
The Boeing Company maintains 67 percent of China's market for
commercial aircraft. Boeing anticipates that over the next 20 years,
nearly one million jobs will be related to Boeing sales to China. Over
the next 10 years, China is expected to purchase 700 airplanes worth
$45 billion. Recognizing Boeing's significant contribution to the Puget
Sound region and the State of Washington, it's no wonder one of the
major labor unions that builds these airplanes supports PNTR.
So many people automatically equate transportation jobs directly with
Boeing, but the aerospace and commercial airline industry is also
supported by thousands of additional employees that contract and
subcontract with the nation's only airline supplier. These contractors
in Washington and all across the nation also stand to benefit from
trade with China.
While the agriculture and manufacturing industries in Washington
stand to gain, the high-tech, service sector and forest product
industries also will benefit from liberalized market access. China has
agreed to zero tariffs on computers and equipment, telecommunications
equipment, and information technology. Tariffs on wood will decrease 7
percent, and paper by 17 percent. In addition, fish products tariffs
will drop by 10 percent.
Washington's geographic proximity to China automatically benefits the
service sector, the ports, and transportation infrastructure. Banking,
securities, insurance, travel, tourism, and professional services such
as accounting, engineering, and medical needs will all gain access to
China's market. Knowing the ambitious and adventurous nature of many
Washingtonians in these fields, I can imagine many State of Washington
subsidiaries could find a home in China.
While all these tariff reductions and trade liberalization efforts
look good on paper, there are also several mechanisms built into the
bilateral agreement to address trade and import concerns. Two of the
most significant items negotiated by the United States were the import
surge mechanism and the anti-dumping provisions. Both these provisions
were considered ``deal breakers'' by American negotiators. Had they not
been included, the U.S. would have walked away from the negotiating
table.
The import surge mechanism will remain in place for 12 years
following China's accession to the WTO, and can be used in response to
potential import disruptions by China. The anti-dumping provision will
remain for 15 years and will be used by the U.S. should an influx of
Chinese products flood our market.
The efficacy of the anti-dumping mechanism is evidenced by the case
the U.S. apple industry filed and won against China. Citing an
excessive increase of apple juice concentrate, the U.S. industry filed
an anti-dumping case with the International Trade Commission, ITC, just
last year. After the U.S. Department of Commerce and the ITC agreed
that the U.S. industry had been harmed, the price for juice apples in
the U.S. increased from $10 per ton back to the normal $130 per ton.
This case was significant as it exemplified the United States' ability
to appropriately deal with Chinese dumping practices, and it concluded
that the U.S. has an appropriate and workable mechanism to address the
issue of import surges.
While the aforementioned specifics about the bilateral trade
agreement speak volumes to our trade dependent friends at home in
Washington, when all is said and done, when all the tariffs are reduced
and markets are liberalized, major questions will still remain. Will
China become the trading partner that the U.S. hopes and desires? Will
the PRC adhere to those details so cautiously and ambitiously sought?
Will the U.S. market benefit from the buying power of China's 1.2
billion consumers? While I might not remain as optimistic about trade
with China as some of my counterparts or those in the U.S. trade
industry, one fact will remain constant. With the passage of PNTR and
China's eventual accession to the World Trade Organization, leaders in
Beijing will have to begin complying by international trade rules and
restrictions or face the wrath of its new trading partners. These
partners will include the United States and all of our allies.
Of the other questions that still remain regarding human rights,
religious freedom, non-proliferation, allegations of espionage, and the
treatment of Taiwan, one can only hope that the eventual promises and
attractiveness of democracy and free market principles will be embraced
by those who encounter it for the first time. One hopes that
eventually, Falun Gong practitioners will be able to practice their
faith in public. One hopes that eventually the weight of
internationalism, globalization and trade will move Beijing away from
theories and military practices that could bring harm to their trading
partners. One hopes that eventually workers will perform in a less
oppressive regime. One hopes that China will one day accept Taiwan as
an independent nation. One hopes.
Because I have remained vigilant about my criticism of China, I
endure to continue my close watch over United States interests and
national security. Because I unconditionally support Taiwan and that
country's efforts to embrace freedom and democracy, I will forevermore
remain their champion. While I believe that democracy will eventually
reign true, I will continue to raise concerns regarding human rights,
religious freedom, and the United States relationship with China on all
fronts.
[[Page S8700]]
I will vote for PNTR not because I am comfortable with the thought
that China will adhere to all the details in the bilateral agreement,
or the prospect that they will become exceptional trading partners
overnight, but I support the men and women from the most trade
dependent state in the nation who have urged its successful passage.
Whatever the course of our relationship with China takes over the
coming years, I assure Washingtonians that I will be scrutinizing the
reactions of Beijing very closely. I will continue to engage in a
dialogue with all interested parties to ensure that Washington benefits
from these new trade practices. I will work to ensure that American
interests and national security weigh heavy on the minds of our
negotiators and the next Administration. Because this vote is
unmistakably one of the most significant trade votes the Senate has
cast in recent years, I assure my constituents that I will keep their
interests at heart.
Whatever it takes.
Mr. SESSIONS. Mr. President, I have decided to vote in favor of China
PNTR because I believe this action will continue our policy of
engagement with the Chinese government and increase the likelihood that
our nation will have better relations with China in the years to come.
The other option was to act on the assumption that China will become
more hostile to the United States and that we must try to seal it off,
which will not work.
This decision is a further step down the road that was begun by
President Nixon in 1972 when he concluded it was better to have
relations with China than to shut it off. Since then there have been
many difficulties, but on the whole, I believe the relationship has
been better than it would have been otherwise.
We now maintain military superiority over China and it is critical
that it continue. I do not believe that it is inevitable that our
future will be shaped by hostile relations with China. If we are strong
and maintain our military, the chance of avoiding potential future
hostilities will be improved. Such a vision is what wise leadership is
all about.
I am not certain how best to improve the conditions of Christians and
other religious people in China. I do recall, however, that when Rome
changed from persecuting the early Christians to making Christianity
the official religion of the empire, the change came about because of a
change of heart and not as a result of a threat from an outside
military power.
I was very impressed with the testimony of Ned Graham, son of the
Rev. Billy Graham, who aids Christians in China and who has visited the
country over forty times and distributed over two million Bibles to
unlicensed Christians. He testified before the Senate Finance
Committee. In his summation he stated that a vote for PNTR would
encourage China's engagement with the world, increase the availability
of computer technology to its citizens, accelerate its development of a
rule of law, allow for increased contact between U.S. and Chinese
citizens, and ultimately lead to positive changes in its religious
policy. He concluded that most importantly ``this action will help
diminish the negative perceptions that exist between our two great
countries.'' While we, as humans, can never know the future, I am
persuaded by his remarks. Generosity of spirit and forbearance founded
on strength are the qualities of a great nation.
On the level of trade, I believe that my state of Alabama will be
able to sell more products in China because of the significant
reductions in the tariffs China has imposed on imported American goods.
This increased trade will benefit Alabama's farmers, timber industry
and much of our manufacturing. It can benefit our transportation
system, including the Port of Mobile.
While I think it will increase our exports, I cannot conclude that
this agreement is going to help our overall balance of trade deficit,
at least not in the short run. While China has a significant wage
advantage in its manufacturing, it has a shortage of many natural
resources, lacks technology, has a very poor infrastructure and is
burdened by corruption and a lack of a rule of law which protects
liberties and property interests. In addition, it continues to hold on
to the form of communism, an ideology of incalculable destructive
power. These problems will burden them for years to come and will take
many generations to eliminate.
The key to the success of this agreement will be vigorous, determined
and sustained leadership by the United States to ensure that China
complies with this agreement and the WTO rules. China's tendency has
been to cut corners and not live up to its obligations under
agreements. In my view, China must come to see that its interests and
those of its trading partners will be advanced by following these
trading rules. Unfortunately, China seems to be obsessed with exporting
and not importing. The truth is China and her people will benefit from
having the opportunity to buy quality food and products from around the
world. They must come to recognize that fact.
This issue is very complex and no one can see into the future with a
crystal ball, but my analysis and judgement tells me it is time to step
out in a positive way, and to take the lead in reducing some of the
suspicions and misperceptions that have grown in recent years between
our two nations.
Since I believe that increased economic activity between our two
countries is not likely to assist China in strengthening its military
in any substantial way, regardless of legislation, I see the positive
aspects of this legislation outweighing the negative. We must, however,
make clear to China that we intend to defend our just interests and
those of our allies around the world, and that we will not abandon our
ally and friend, the Democratically elected government of Taiwan. We
also need to remain especially vigilant to protect our military secrets
and technological advantage. I was therefore disappointed that the
amendment offered by Senator Fred Thompson did not pass. We must make
crystal clear to our business community that we will not tolerate
transfer of our military technology to China. While I favored a number
of the amendments that have been offered to this legislation, and was
disappointed they did not pass, I am appreciative of the quality of the
debate that has surrounded this issue.
China has 1.2 billion people, the most populous country on this
globe. Their people are talented and hardworking. Our vote today should
enhance our economic and political relationships.
Mr. EDWARDS. Mr. President I rise today in support of H.R. 4444,
which would grant Permanent Normal Trade Relations to China. I do so
only after long and careful consideration of this proposal.
I believe that granting permanent normal trade relations with China
is the right thing to do. It will significantly alter our nation's
relations with China. Trade between U.S. companies and the Chinese will
likely explode in the coming years--generating jobs and revenues in
this country. It could easily be the keystone in the continuing
prosperity of this nation. And it could be the vital catalyst for
democracy and a free-market system in China.
During the last few months as I have traveled through North Carolina
and met with my constituents, I have heard from hundreds of men and
women who believe that their future prosperity and their jobs turn upon
this vote. Many of them eagerly support this legislation.
I believe that North Carolina workers can compete with anyone and
win. This bill opens a world of opportunity to North Carolina
businesses and workers. The farmer, the high- tech worker, the
furniture manufacturer, the factory worker, and the banker all will get
a real chance to capture a part of the Chinese market.
The farmer who is working so hard and struggling believes that
China's agricultural market will be opened. For example, China already
imports 12 percent of its poultry meat. If China joins the WTO, it will
cut its poultry tariffs in half and accept all poultry meat that is
certified wholesome by the USDA. A similar situation holds for pork and
tobacco products. China's agreement to lower its tariffs, to eliminate
quotas, and to defer to U.S. health standards provides North Carolina
farmers with real opportunity.
The high- tech worker who is producing software or fiber optics cable
will also benefit. China has agreed to eliminate its duties on these
products in the next few years and has agreed to eliminate many of its
purchase and distribution rules that inhibit sales of U.S. products.
[[Page S8701]]
Meanwhile, tariffs on furniture will be eliminated. Tariffs on heavy
machinery will be reduced by nearly one half. Banks and insurance
companies will be able to do business with the Chinese people without
arbitrary restrictions. The list goes on.
As U.S. goods and services flow into China and as our engagement
grows, the opportunity for real change in China grows. We are all aware
that China has a long way to go in improving its record on human
rights, religious liberty, environmental protection and labor rights.
The abuses in that nation are serious. And I am committed to continued
efforts to end those abuses. As American ideas, goods, and businesses
surge into China, I believe China's record will improve.
But I am mindful that globalization and this bill in particular may
have a real downside. As a Senator from North Carolina, I am well-
positioned to see both the enormous benefits and the large costs of
this measure.
Textile and apparel workers, many of whom live in North Carolina,
face real challenges as a result of this measure. While in almost every
respect the agreement with China benefits our country, textiles is the
major exception. As a result of joining WTO, quotas on Chinese textiles
and apparel will be eliminated in 2005. As a result, Chinese apparel
will flow into the United States. By and large, the Chinese imports
will likely displace imports from other countries. However, there is no
doubt that an additional burden will be placed on the textile industry.
To be sure, the industry can try to protect itself through the anti-
surge mechanism put in place by this legislation. Yet it does us no
good to pretend that these remedies are perfect and that people will
not be hurt. I know that textile workers will work their hearts out
competing with the Chinese. I know these people; I grew up with them.
When I was in college, I worked a summer job in a textile mill. My
father spent his life working in mills. The impact of PNTR on them is
personal to me. Dealing with the impact of this bill on them will
always be a top priority for me. And I will fight throughout my career
to protect them.
Mr. President, China's entry into the World Trade Organization and
its attainment of permanent normal trade relations with America is not
without its risks. No one can predict with certainty that China will
live up to its commitments. I vote for this bill because I believe that
we must turn our face toward the future. But we must be mindful of the
risks. So I warn that I will monitor China's compliance with its
agreements like a hawk. If they renege, I will lead the charge to force
them to live up to their obligations.
But to vote against this measure--to deny PNTR--not only fails to
accomplish anything productive but also denies us enormous
opportunities. We cannot hide our heads in the sand. China will join
the WTO. The Senate has no impact on that decision. The only question
we face is whether the U.S. will grant China permanent normal trade
relations or whether it will fall out of compliance with its WTO
obligations. If we fall out of compliance, the U.S. will be denied the
Chinese tariff reductions and rule changes, while every other country
in the world takes advantage of the Chinese concessions. We must decide
whether the U.S. will be able to compete with other countries--Germany,
France, Japan--as they enter the Chinese market. American companies and
workers deserve the right to enter those markets. On balance, I believe
that China's admission into the World Trade Organization and its
attainment of permanent normal trading relations is for the good.
And so I vote for this legislation, mindful of the risks, prepared to
watch the results carefully and optimistic about the future.
Mr. SANTORUM. Mr. President, the Senate is completing a historic vote
on the U.S.-China Relations Act of 2000, H.R. 4444, which grants
permanent normal trade relations, PNTR, status to the People's Republic
of China. Realizing that many Pennsylvanians have expressed very strong
feelings on both sides of this issue, I would like to take a moment to
discuss my reasons for supporting this measure.
First, it is important to understand what normal trade relations,
NTR, is. Since 1980, the United States has granted China NTR status
every year, subject to an annual review. ``Normal trade relations'',
NTR, is the tariff treatment the U.S. grants to its trading partners.
All but a select few countries receive this trade status. NTR simply
means that products from a foreign country receive the same relatively
lower tariff rates as our other trading partners enjoy. The lower
tariff rates result from years of negotiations and various trade
agreements in which the U.S. reduces its duties on imports, in exchange
for reduced rates on its own products. NTR lowers tariff rates, but
does not eliminate them altogether. In this way, NTR substantially
differs from a free trade agreement. Free trade agreements, such as
NAFTA, set dates by which all tariffs among the member countries will
be eliminated. I would also note that certain countries receive even
lower tariffs than NTR affords through ``preferential'' tariff status.
The U.S.-China Relations Act ends the annual renewal process for
China's trade status by extending permanent normal trade relations,
PNTR, to China. The Act becomes effective when China is officially
accepted as a member of the World Trade Organization, WTO. Upon China's
accession to the WTO, a trade agreement negotiated between the Clinton
Administration and China will also become effective. In exchange for
PNTR, China has agreed to unprecedented tariff reductions and market-
oriented reforms. The U.S. is not required to reduce our tariffs or to
make any commitments, other than extension of PNTR. We also preserve
the right to withdraw market access for China in a national security
emergency. China, however, has committed to specific trade concessions
by certain dates. Thus, the terms of this agreement are clear and
enforceable. If China violates its agreements, the U.S. will be able to
respond quickly and definitively.
I supported H.R. 4444 because without Congressional approval of PNTR
status for China, the U.S. would not benefit from the concessions China
agreed to in the bilateral trade deal. These concessions, which open
the Chinese market to American goods and services, will benefit
Pennsylvania's farmers, industries and workers. Likewise, I believe
that engagement in a rules-based system of trade will help foster
political and personal freedom, as well as economic opportunity, for
China's citizens.
Mr. President, China is now the third largest economy in the world.
The bilateral trade agreement pries open this historically closed
market for Pennsylvania's products and services, especially in the
agriculture, technology, banking, insurance, and manufacturing sectors.
According to the U.S. Department of Commerce, Pennsylvania exports a
wide range of products to China. Pennsylvania, as a major exporter of
beef, pork, poultry, feed grains, and dairy products, will see average
agriculture tariffs cut by more than half by January 2004. China
must also eliminate its agriculture export subsidies and reduce
domestic subsidies. Industrial tariffs on U.S. exports to China will be
cut by more than half by 2005. Furthermore, China must eliminate
quotas. Within three years, Pennsylvania companies and farmers will
have full trading rights to import, export, and distribute their
products directly to Chinese customers. Tariffs on chemical products,
automobiles, and steel exported to China will also be cut from their
present rates. And of course, it is important to note the strength of
Pennsylvania's workers in these industries. The bilateral agreement
takes the first steps in leveling the playing field for Pennsylvanians
to compete in an emerging international market.
I am also pleased to say that small and medium sized businesses will
benefit under the bilateral agreement. Most companies that are
currently exporting to China are small and medium sized enterprises,
SMEs. Nationally, 82 percent of all firms exporting to China were SMEs.
Of all Pennsylvania's companies exporting products to China, 63 percent
are SMEs.
Despite the benefits of our trade agreement, I am mindful of sincere
opposition to granting PNTR to China on the basis of its human rights
record. Under H.R. 4444, the United States will no longer condition
China's trade status upon an annual review of ``freedom of emigration''
practices. This does not mean that the U.S. will stop pressuring
[[Page S8702]]
China to allow its citizens to leave the country, if they choose to do
so, nor does it mean that the U.S. will stop monitoring the widespread
human rights violations in China. Rather, H.R. 4444 establishes a
special Congressional-Executive Commission to monitor human rights
abuses in China and to recommend appropriate remedies to the President
and Congress. I realize that the Commission, PNTR, and even eventual
WTO accession will not immediately bring about change in China;
however, I believe that further engagement and economic reforms will
lead to greater political and personal freedom for Chinese citizens.
Isolating China serves only to strengthen the hand of hard-line
communists who would continue to oppress the Chinese people. Many
religious leaders share this view, including some pastors of Chinese
house churches who have been jailed for their beliefs.
Another concern that I have taken very seriously is the potential
impact on American workers. I have studied both the bilateral trade
agreement and this legislation very carefully. Basically, the Chinese
receive the same NTR tariff rates they have received for the past 20
years. In return, we get lower tariffs for our exports to China, new
market access in distributing our products within China, and
elimination of trade barriers for U.S. goods and services in the
Chinese market. In other words, China essentially gets the status quo,
while we get new benefits and substantial concessions from the Chinese.
The U.S. fully preserves its anti-dumping and countervailing duty laws,
which protect our industries and workers against unfairly traded
Chinese imports. I would also note that H.R. 4444 provides even
stronger protection from harmful Chinese import surges than current
U.S. trade law allows. Furthermore, H.R. 4444 creates a government task
force to prevent products made from Chinese prison labor from being
imported into the U.S. With these protections in place and with
effective enforcement, I believe that American workers can compete
against anyone else in the world. American workers are, after all, the
world's most productive.
I would also like to address the difference between granting PNTR to
China and WTO accession. Congress has voted to extend PNTR to China;
however, Congress has no vote on China's accession to the WTO. WTO
accession is a four-step process. First, the applicant must present its
trade and economic policies to a Working Party of all interested WTO
countries. While these general multilateral negotiations take place,
separate negotiations take place between the applicant and individual
WTO countries, including the United States. These bilateral
negotiations establish specific market access commitments and tariff
rates. When both of these steps are completed, the Working Party drafts
the terms of membership. Finally, the complete package is presented to
the WTO Ministerial Conference for approval. The result of not
extending PNTR would have been to deny U.S. farmers, manufacturers,
banks, insurance firms, and their employees access to the Chinese
market as promised in the bilateral trade agreement. Also, the U.S.
would have been unable to avail itself of multilateral dispute
settlement procedures in the WTO if further trade disputes with China
arise.
Finally, I would like to assure Pennsylvanians that my vote on PNTR
does not lessen my resolve to fight for fair trade in any way. Even
after China joins the WTO, I will continue to monitor their adherence
to the bilateral trade agreement. H.R. 4444 requires the United States
Trade Representative, USTR, to issue a yearly report on China's
compliance with its WTO obligations. I will follow these reports
closely. In the meantime, I will continue to vigorously fight for
stronger trade laws to protect U.S. workers and producers from unfairly
traded foreign imports. For example, just last Friday, I testified at
the International Trade Commission to oppose revocation of the
antidumping and countervailing duty orders on various foreign steel
imports.
I hope this clarifies the reasons I am supporting the U.S.-China
Relations Act of 2000.
Mr. ROCKEFELLER. Mr. President, many of us have struggled for months
to decide what is the right vote on China PNTR--the right vote for our
individual states, the right vote for the Nation. I certainly have, as
I have tried to grasp what effect PNTR with China might have on my
state of West Virginia.
Over the last few months I've taken some time to listen and to talk
with people in my state, to review where we are in West Virginia under
the current trading system. I've tried to assess if West Virginia will
be helped or disadvantaged if the Congress rejects PNTR. That is what I
care about more than anything.
It is well known that West Virginia is a long way from enjoying the
full benefits of the economic boom that we hear so much about.
Unemployment remains over 5 percent, stuck stubbornly far above the
national average. Our per capita income is $19,362, 49th among the
states. Far too many of our working poor require food stamps, and far
too many remain uninsured. And while I will fight every day to bring
more and better jobs to West Virginia, the fact remains that we are a
long way from providing the economic opportunities for the thousands of
West Virginians who want to improve their lives, or are just struggling
to survive from day to day.
There are many complex reasons that my state lags behind the nation
economically. But one significant reason-- which I believe with all of
my heart and which I cannot ignore--is the simple fact that our current
international trading system is simply not working for the people of
West Virginia. The status quo is not working for West Virginia, neither
for its workers nor for its industries.
We are just not being fairly treated under the current rules. Witness
the struggle we have faced to protect our critical steel industry.
Cheap and illegal imports began flooding the U.S. market in late 1997.
A full two years passed before the first trade cases were resolved and
the domestic industry got any relief and remedy. In those two years,
six steel producers went bankrupt. Thousands were laid off. The impact
on those companies, their employees, and the steel communities was
devastating. And that is why I introduced fair trade legislation that
would give our steel industry a fairer chance to prevent illegal steel
dumping in the future. The status quo, our current unfair trade laws,
were not working for West Virginia.
We in West Virginia are not being protected by the current trading
rules. They are causing us to lose ground, lose jobs, and lose
industries. I love my state too much to allow this to continue without
fighting in every way I know to make it better. I will not vote to
continue the current rules. I will not vote to maintain the status quo.
A vote in favor of PNTR for China will allow us to deal specifically
with China on steel. For example, under today's unfair trade laws, the
President must take uniform action against all countries that are
dumping their imports on our market. Under current law and the status
quo, the United States cannot single out one country for a tough
remedy. Under the bilateral's antisurge provisions, we could address an
influx of imports from China specifically. That is just one example,
there are a few other provisions of the bilateral that could also work
to, in essence, strengthen our ability to guard against Chinese steel
disrupting our market.
West Virginia's chemical industry will benefit greatly from the
tariff reduction that will come from passing PNTR legislation. The
chemical industry is the largest industrial employer in West Virginia
with an average salary of $51,000. During this debate, I heard from all
of our chemical companies about the potential they have to increase
their exports to China once this agreement goes into effect. Companies
like DuPont who wrote me recently with the following: ``DuPont
currently exports to China almost $16 million of products from our
plants in West Virginia, and we see those exports increasing as the
Chinese economy grows. West Virginia is, in fact, the second leading
exporter to China, surpassed only by Texas, among DuPont operations
nationwide. West Virginia exports will drop to zero, however, if
Congress does not enact PNTR legislation--because China will keep its
tariffs high for U.S. exporters while lowering its tariffs for all
other members'
[[Page S8703]]
nations of WTO. Enactment of this legislation is, therefore, extremely
important to DuPont and to our 3500 employees in West Virginia.''
It also means that as a part of the international trading regime,
China will have to deal with 131 other trading partners who all will be
incredibly vigilant to ensure that China is playing by the rules. It
will not be a perfect system, but it will be a much better system.
So I say, Mr. President, when you have the opportunity to do trade
and business with 1.2 billion people, to engage them with the world as
we do today, to change the status quo that is not working for West
Virginia, then you must do what is right. It's even more important when
your state ranks 4th among all 50 states in percentage of products made
that are exported abroad. That is why I will vote today to approve
Permanent Normal Trade Relations with China.
To be clear, the vote we take today is not about China entering the
WTO. Others have said this, but it bears repeating over and over. The
American people must understand this: China will enter the WTO no
matter what the Congress does.
So, the sole question we must answer is, what will the impact be if
the Congress rejects PNTR? Has this annual review of our trading
relationship with China had the impact we had hoped it would, and what
will be the effect of rejecting PNTR on West Virginia and all the
United States?
First, as to the impact on China.
I do not accept, indeed, I abhor, the unfair and sometimes inhumane
conditions faced by the people of that largest of the world's
countries. I have spent a considerable amount of time in that part of
the world and I know conditions there are unacceptable. All people who
love freedom decry the violations of people's rights in China. As the
leader of the free world, America must acknowledge its responsibility
to do all in our power to better China's treatment of its people.
I also believe we should encourage nations like China, where fast-
growing economies will increase both energy demand and greenhouse gas
emissions, to use the cleanest technologies available. In fact, I view
PNTR as the best means of introducing these mostly-American
technologies, some of the most cutting-edge of which were developed in
West Virginia, to the Chinese energy sector.
At the same time, I cannot say that the Congress' annual review of
China has had any impact on China whatsoever--and we are just kidding
ourselves if we think denying China PNTR now will improve labor or
human rights. The annual PNTR review was supposed to provide us with
some leverage to improve the conditions in China. But in reality, it
has become mostly a feel-good, rubber stamp process here in the
Congress that has no impact. Neither wages nor working conditions nor
environmental safeguards have been advanced because we go through the
annual charade of PNTR. I wish this were not true; the world experience
says it is.
What will improve labor and human rights in China, in my view, is our
working to bring China into a world living under law, acting to bring
China into a fairer trading system without its restrictive tariffs and
other barriers, and fighting to force China to deal in the world of
nations under fairer rules, not just its own rules. Fighting to make
China play by the rules--that's a fight I'm willing to make!
So I turn then to my second question: Will our country and my state
be disadvantaged if we reject PNTR?
To that there is only one answer--I am convinced we, my state, my
country, will be harmed if PNTR is rejected. No one else.
Remember, China will enter the WTO no matter how the Congress votes
on PNTR. When that happens, and if we reject PNTR, all other WTO
nations will have the upper hand, and all of our trading partners will
benefit from lower tariffs and greater access to the world's largest
market. Other nations will have all of the advantages in doing business
there. Our workers, our industries, our farmers--all will have lost
this new opportunity to gain fairer access to the largest of the
world's untapped economies. Why would we want to squander that
opportunity?
Rejecting PNTR means we lose--America loses--the many important
concessions that were won last year in our government's negotiations
with China. All will be lost, including unprecedented concessions that
will give U.S. industries the upper hand in cases where the fairness of
China's trading practices is in question. The bilateral agreement
provides a twelve year product specific safeguard that ensures that the
U.S. can take action on China if imports from that country cause market
disruptions here in America. China has also agreed to grant U.S.
industries the right to apply non-market methodology in anti-dumping
cases for the next 15 years. This is a major boon for U.S. industries
suffering from injury caused by unfair and illegal imports. China makes
other concessions as well, which make it easier for businesses in this
country to prove countervailing duty cases against China.
These new provisions could be used to help companies, like Portec
Rail, in Huntington, West Virginia, who may have been harmed from
dumping of Chinese steel rail joints. It seems to me that companies
like Portec Rail might be early beneficiaries of these stronger import
surge provisions.
Let me be clear, these provisions improve the status quo. They are
stronger than our current unfair trade laws. Under the new agreement,
China will finally be required to greatly lower its barriers to our
trade there. China makes all the concessions. We have nothing to gain--
and everything to lose--by rejecting PNTR.
And lose we will. What would be the likelihood of Chinese retaliation
if we reject PNTR? There is little doubt in my mind that China would
retaliate against U.S. economic interests. On a purely political level,
it would bolster China's hardline forces of party control and state
enterprise. And this could destabilize an area of the world that I care
deeply about, the Taiwan Straits. I have spent a large part of my time
working on the cross Straits issue between China and Taiwan. I want to
see peace in that region. I want to see Taiwan join the WTO. But,
rejection of this deal could have real dangerous consequences for
Taiwan. China is simply too unpredictable, and could paralyze our
efforts to promote peace and economic stability in Asia and around the
globe.
Mr. President, of course we need to be vigilant and tough with China
as we take advantage of this new economic opportunity. I fully realize
that China has generally gone about its trading business however it saw
fit, doing whatever it wanted and barring most competition. That cannot
continue, and that is exactly why I believe we must bring China into
and under the scrutiny of the WTO. We must make China play by a fairer
set of rules, which means bringing them into a trading system governed
by rules that we have helped create. And rules that we can enforce.
Mr. President, this is an opportunity for America that I am willing
to fight for.
Mr. KOHL. Mr. President, I am pleased that the Senate has been able
to pass, after extended debate, H.R. 4444 which will make Normal Trade
Relations with China permanent. After over twenty years of yearly
extensions of Most Favored Nation trading status, we are now going to
stabilize our trading relations with the Chinese. This is a step
forward for the United States, China, and our citizens.
I believe in trade as a liberalizing force. A country cannot accept
our goods and services and not be exposed to our ideas and values. One
has only to look around the Pacific to see countries that have made the
move from dictatorship to democracy and see their focus on trade to
understand the connection. South Korea, Taiwan, and Indonesia have all
made steps toward greater democracy and all three have been engines for
economic growth in the region. As capitalism penetrates Chinese
society, the push for greater democracy will inexorably follow.
Increased trade and investment between our countries will separate
Chinese workers from dependence on state owned enterprises. Currently
Chinese workers depend on the state for almost everything including
their jobs and paychecks. Once workers have a choice between working
for the government and for private business, and can break their
dependency on the state, the push for greater democracy will only
increase.
[[Page S8704]]
Trade will also serve as a valuable tool for exchanges between our
countries as a more personal form of diplomacy. As business people
travel back and forth, as workers meet Americans, as the Chinese people
have more exposure to our country through the media and the internet,
the people of China will develop there own attitudes about Westerners,
capitalism, and democracy.
The World Trade Organization will bring China the prestige and
respect it craves, but at a price. As a member, China will be treated
like any other member of the international community, and not like an
outcast or rogue. The members of the WTO, however, will not let
themselves be taken advantage of in trade matters. During this debate I
have heard many members talk about the advantage of multilateral
sanctions over unilateral ones. The WTO offers members an excellent
mechanism to propound and enforce multilateral sanctions, forcing
China's compliance on trade issues.
While the agreement that the Administration negotiated in the fall of
1999 is not perfect, it significantly equalizes the terms of trade
between our countries. Not only did we convince the Chinese to
drastically reduce their tariffs on everything from auto parts to ice
cream, we also negotiated to keep our anti-dumping and import surge
laws. On our side, we gave up nothing in exchange. We did not allow any
additional access to our markets or lower our tariffs. It was a one way
deal--a deal that U.S. farmers and workers benefit from. People may be
concerned about Chinese imports into the United States, but this
agreement does not alter China's access to our markets one bit. On our
side of the Pacific, nothing will change.
Some of my colleagues were disappointed that workers' rights
provisions were not provided for in this agreement. I share their
concern that China does not share our belief in the importance of
respecting working people. I believe that Senator Helms had an
excellent proposal for raising the working conditions in China, while
protecting the reputations of U.S. businesses that operate in China.
His amendment to create a voluntary Code of Conduct for U.S. businesses
in China would go a long way in protecting Chinese workers. By agreeing
to respect certain rights to organize, to earn a decent wage, and to
work in a safe environment, Chinese workers would learn the benefits of
American style capitalism. This would also protect U.S. companies from
being accused of abusing foreign workers for economic gain. We all know
the public relations albatross around the neck of companies that moved
to third world countries and thought they did not have a responsibility
to meet Western standards of worker protection. We all know the names
of companies who have operations in Vietnam, Indonesia, and Central
America that have been brought under harsh scrutiny when the public
finds out what the conditions are in these factories. Senator Helms's
amendment provided an opportunity for companies to avoid this negative
publicity by agreeing openly that certain principals will always be
respected, regardless of whether the factory is in China or the United
States.
As we focus on expanding economic ties with China, we must consider
our decision to grant PNTR in the context of our broader foreign policy
relationship with China. I count myself among those who support PNTR in
the hope that expanded trade with China will result in a more open
Chinese society. To that end, we must be persistent in pressing the
Chinese to demonstrate respect for human rights. Since the May 1999
suspension of the bilateral dialogue on Chinese human rights we have
continued to convey our concerns to the Chinese about their repressive
policies. Their unwillingness to engage with us on these issues puts
more pressure on us to use the trade and economic contacts we have to
press them on human rights and other matters.
Although I chose not to support the Wellstone amendment which would
have conditioned PNTR on specific steps to improve religious freedom in
China because I do not believe we should be adding last minute
conditions to PNTR, I am deeply concerned about the most recent State
Department reports on human rights and religious freedom in China. The
Chinese government's respect for religious freedom and human rights has
deteriorated considerably in recent years. Reports of severe violations
continue unabated, including harsh crackdowns against religious and
minority groups, the imprisonment of religious and minority leaders,
including Catholic bishops, the complete repression of political
freedom, and violence against women, including forced abortions,
sterilizations, and prostitution.
There are those who say that we are losing our leverage with the
Chinese on human rights by giving up our annual review of their human
rights practices before we grant them normal trade relations status. In
practice, however, this review had become a formality. We have never
denied the Chinese normal trade relations status, even in recent years,
since the Tianneman Square uprising, when their human rights record has
been so egregious. I have believed that trade can be used as an
effective bargaining tool in pressuring governments to improve their
records on human rights. In the case of China, PNTR will not only
provide us with the opportunity to press the Chinese at the highest
levels, expanded trade will expose the Chinese people to the many
freedoms we hold so dear, creating pressure from within.
We will also not be losing our opportunity to monitor Chinese human
rights practices in a public way. The legislation before us creates a
Helsinki-style commission which is designed to keep human rights on the
front burner of US-Chinese relations. We must monitor Chinese behavior,
speak plainly to the Chinese, and take action when necessary to
communicate our objections to China's human rights record. And, we must
continue our support for U.S. government and non-government efforts to
effect change in China, including the development of the rule of law.
We must also use our growing access to China to do all we can to stem
the proliferation of weapons of mass destruction and their delivery
systems. The proliferation of these weapons and the ballistic missiles
designed to deliver them pose the greatest threat to our security in
the post-Cold War era. One of the consequences of the end of the Cold
War has been looser controls on the technology, materials, and
expertise to develop weapons of mass destruction. We must do all we can
to prevent terrorists or radical states from acquiring these weapons
and the means to deliver them. To that end, we have been a leader in
setting up international regimes to prevent the spread of nuclear,
chemical and biological weapons, and ballistic missiles. Unfortunately,
there is much evidence that the Chinese have been heavily involved in
proliferation activities.
Although some would argue that the Chinese have made progress in this
area, pointing to their 1992 promise to abide by the Missile Technology
Control Regime, MTCR, their accession to the Nuclear Nonproliferation
Treaty, NPT, their signing and subsequent ratification of the Chemical
Weapons Convention, CWC, and the signing of the Comprehensive Test Ban
Treaty, there are still grave concerns about Chinese proliferation
activities. At the same time that China was making commitments to
adhere to international regimes to prevent the spread of nuclear and
chemical weapons and ballistic missiles, Chinese companies continued to
transfer sensitive technology to a number of countries. These
technologies were instrumental in the development of weapons programs.
Missile technology sales to Pakistan, nuclear technology sales to Iran,
chemical sales to Iran, and missile technology sales to North Korea
have all been attributed to the Chinese. China has played a major role
in Pakistan's nuclear program, selling Pakistan 5,000 ring magnets,
which can be used in gas centrifuges to enrich uranium, and other
equipment for their nuclear facilities. As recently as August 9, the
CIA reported that China is still a ``key supplier'' of weapons
technology, confirming for the first time missile technology sales to
Libya.
The few advances China has made, at least in its formal commitments,
can be attributed to U.S. pressure. The key to preventing the further
spread of sensitive weapons technology and know how is to continue to
press the Chinese to honor the spirit of these commitments. We must not
be afraid to be
[[Page S8705]]
tough with them in this area and we must be willing to use all tools--
including sanctions--to bring this message home. Global security is at
risk if we allow rogue states to develop the capability to build
weapons of mass destruction. And, our own national security is directly
at stake if they develop delivery systems, that is long-range ballistic
missiles, to bring these weapons to our shores.
That is why I chose to support the Thompson-Torricelli amendment to
require annual reviews of Chinese proliferation activities. If the
review identifies persons or other entities engaging in these
activities then sanctions would be imposed. I have been a long-time
supporter of economic sanctions against companies and governments which
engage in proliferation activities. I recognize that sanctions may not
always be appropriate, and that is why Thompson-Torricelli had waiver
provisions. However, sanctions have not been imposed in many cases that
begged for a stronger response from our government. The reluctance to
use sanctions sends a signal to the Chinese and others involved in
proliferation activities that there are rarely consequences for bad
actions. We must have teeth in our non-proliferation policy or in the
end we will suffer the consequences.
I had no desire to delay PNTR in my support of the Thompson
amendment, and I can say the same for all the amendments which I chose
to support during our consideration of PNTR. Our trade ties can benefit
us in all our dealings with the Chinese, but we must not permit trade
to overshadow the broad range of interests which we have with them.
I have no illusions about the potential impact of what we have done.
PNTR will not change the balance of trade overnight. This agreement
will take time to have a liberalizing effect on the Chinese government.
China is thousands of years old, we will not change their minds in a
couple of years, regardless of whether we use carrots or sticks to
persuade them. We need to continue working to reduce subsidies below
their current levels, and continue to eliminate tariffs. The U.S. will
also need to continue to work on human rights as well. The bill
provides some of the tools for the work on human rights to carry on,
but we must be diligent and stay focused on the task ahead.
Mr. ASHCROFT. Mr. President, I rise today to talk about a significant
vote I will cast--a vote in favor of permanent normal trade relations
for China. It is significant, but difficult. Difficult because the
Chinese have shown--in everything from predatory trade practices, to
threatening our national security, to total disregard for religious
freedom and human rights--a disturbing lack of trustworthiness. And
furthermore, the current administration seems trapped in a cycle of
failed policy. I deeply regret that our President, on behalf of the
United States, has squandered multiple opportunities to protect U.S.
interests and to promote American values in trade matters.
The vote is significant because about one-fourth of the people in the
world live in China. When we talk of China, we need to remember that we
are talking about people, many of whom seek to embrace the same values
that made America great, such as religious freedom, freedom of
expression, and capitalism. They want to live free, while many of their
leaders want only to amass power and rule with a heavy hand.
I do not argue, as some do, that dropping the annual review of
China's trading status will usher in all of these freedoms. Nor will it
further protect U.S. security interests. That argument is tenuous, at
best.
The only thing that will usher in the freedom to express religious or
political beliefs, to organize, to obtain a fair trial, and to be free
from governmental intrusion, will be a transformation among China's
highest government officials. This will not happen in the absence of a
well-formulated policy underpinned by moral leadership on the part of
the U.S. Presidency. The leader of the free world must lead the world
toward freedom. For the sake of the Chinese people, it is my hope that
the next President of the United States will take the initiative in a
calculated and consistent manner to be a leader in this area, without
the need to be prodded by Congress at every turn.
Furthermore, the key to U.S. security interests lies in the hands of
the Commander in Chief. If China joins the World Trade Organization,
the United States does not alter its ability, or its responsibility, to
protect our interests at home and to promote security abroad. While the
WTO agreement has an explicit exception that states that WTO trade
obligations do not supercede national security decisions, the fact is
that the United States does not need the exception. The most
fundamental role of the U.S. government is to protect the security
interests of its people, period. We can count on other countries to
attempt to steal our national secrets and to violate our security
interests. It is the way of history, the conflict of powers. The
breakdown in U.S. security with the Chinese has occurred because this
Administration has not been vigilant to protect our interests. It did
not and does not have to be that way in the future.
Granting permanent normal trade relations to China does not alter the
President's responsibility to promote American values or to protect
U.S. security interests. However, granting PNTR to China does have a
substantial impact on our ability to enforce our trade agreements. I
would like to discuss this issue fully today because I believe it is
central to the ability of American farmers and companies to crack open
the Chinese market--on which Chinese officials, at times, appear to
have a death grip.
As we all know, China has been trying to accede to the WTO for over a
decade. In order for this process to be complete, China has to
negotiate the terms of the trade agreement that are satisfactory to the
United States and other WTO members and must receive a favorable vote
from the WTO members. Also, for the United States to benefit from those
new terms, Congress has to grant to China what is known as ``permanent
normal trade relations'' status. The Administration has concluded a
trade agreement with China, and the President, Vice President, and
entire Administration are now asking Congress to support PNTR.
A fair trade relationship with China has the potential to give
Missouri workers and farmers the ability to sell goods in a new market
of more than one billion people. However, a relationship is not built
on commitments alone. It must include accountability. In China's case,
we have a new and improved trade agreement, but we must also be able to
enforce those commitments.
On the first issue--a solid agreement--there has been substantial
progress made. China should open its market on equal terms to the
United States. The U.S. market has been fully open to China for years.
Although I would like to see complete reciprocity, I have reviewed the
proposed agreement for China's WTO accession, and I believe it is a
forward step toward opening China's market for U.S. products and
services. This is a good deal for American jobs and Missouri's long-
term economic growth.
On everything from automobiles to agriculture, Missourians are
prepared to embrace the opportunities the agreement could provide:
overall average tariffs will go from 24 percent to 9 percent by 2005;
agricultural tariffs will be cut nearly in half (31 percent to 17
percent); businesses will be able to bypass state-trading ``middle-
men''; import standards for U.S. food goods will be based on sound
science; competition will increase in all of the service sectors, like
telecom, insurance, banking; the Internet will be open to U.S.
investment; and the list goes on.
The Missouri economy at large is poised to benefit substantially from
further opening of the Chinese market. From the early to late 1990s,
Missouri's exports increased by about 120 percent, going from about $65
million in 1993, to about $145 million in 1998. Most recently, China
ranked in the top 10 countries for Missouri exports, up from the 16th
position in 1993.
Agriculture is the largest employer in my home state, and in fact,
Missouri ranks 2nd in the nation in its number of farms. As I've
traveled around the state, stopping in every county over the last few
months, Missouri farmers and ranchers have expressed to me the
importance of approving the agreement that has been reached on
agriculture.
[[Page S8706]]
Those I met at the Missouri State Fair and at Delta Days told me that
trade is becoming the number one issue for farmers.
Soybean farmers, for instance, must export about half of what they
produce because there are simply not enough buyers in the United
States. As the nation's sixth largest soybean producer, Missouri's
soybean and soybean product exports were estimated at $586 million
worldwide in 1998. China is the world's largest growth market for
soybeans and soy products, and it has taken additional steps under the
WTO agreement to further open its market. Tariffs will be 3 percent on
soybeans and 5 percent on soybean meal, with no quota limits. For
soybean oil, tariffs will drop to 9 percent, and the quota will be
eliminated by 2006.
Examples of how Missouri agriculture stands to benefit are limitless.
Beef, for instance, could see huge gains. Currently, Missourians are
not in any real sense able to export beef to China because of trade
barriers. Under the WTO accession agreement, by 2004 China will lower
its tariff from 45 percent to 12 percent on frozen beef, from 20 to 12
percent on variety meats, and from 45 to 25 percent on chilled beef.
Also, China has agreed to accept all beef that is accompanied by a USDA
certificate of wholesomeness. These are opportunities Missouri
cattlemen want to embrace. Under the agreement, U.S. cattlemen gain
parity with those in other countries to compete for a beef market that
covers about a quarter of the world's consumers and is virtually wide-
open for growth. I know that if Missouri farmers and ranchers are given
the opportunity to compete on these fair terms, they will succeed.
The WTO agreement could also help Missouri's manufacturing industry.
Missouri's manufactured exports to China are broadly diversified, with
almost every major product category registering exports to the Chinese
market including processed foods, textiles, apparel, wood and paper
products, chemicals, rubber and plastics, metal products, industrial
machinery, computers, electronics, and transportation equipment.
Missouri's exports to China are from all across the state and include
a variety of small and mid-sized companies. Sales to China from St.
Louis totaled $93 million in 1998, a 92 percent increase since 1993.
Kansas City posted exports to China of $66 million in 1998, an increase
of 169 percent since 1993. The exports from the Springfield area grew
by 42 percent between these years. Clearly, however, these numbers
could increase much more if China's market becomes truly open--if China
keeps its promises outlined in the WTO agreement.
I certainly do not claim to know exactly how changes in trade policy,
such as China's WTO membership, will translate into real changes for
people on a day-to-day basis, so I have set up a Missouri Trade Council
to advise me on issues such as this. I would like to share a few of
their thoughts.
Gastineau Log Homes, in New Bloomfield, wants to see if it can tap
into China's demand for American-style homes, by providing U.S.
engineering expertise and the materials with which to make them.
In Ava, MO, the Copeland plant (a subsidiary of Emerson Electric)
explained how opening markets to one-fourth of the world's population
can create jobs and substantially impact local communities. The Ava
facility supplies the key components (scroll sets) for air-conditioning
compressors. This plant would receive the benefits of the November
agreement for these scroll sets by a reduction in industrial tariffs
from 25 percent to 10 percent. Also, trading and distribution rights
would be phased in over three years, so that Emerson Electric could
distribute its scroll sets and compressors broadly, not just to its
Suzhou plant, but to all distributors in China. And, Emerson Electric
will be given the opportunity to service their products and establish
service networks. The Copeland management has high expectations about
sending their products to China. Right now, 40 percent of the plant's
manufactured equipment goes to Asia, and the manager is expecting that
percentage to nearly double. By 2003, exports to Asia well could be
about 85 percent, and half of those exports are expected to go to
Suzhou. Currently, the Ava plant employs about 350 Missourians, and the
workforce is expected to double by 2003.
After reviewing China's WTO accession agreement and examining its
probable impact on Missouri businesses and farmers, I believe that
while the agreement does not give the United States complete
reciprocity, it does make substantial progress on China's commitment to
open its markets. However, the U.S.-China trade relationship must also
have accountability. On the second issue--the enforceability of the
agreement--I have more serious misgivings about the impact of granting
PNTR to China.
The United States government has a responsibility to see that trade
agreements we enter into are enforceable and enforced. My goal is to
ensure that workers, farmers, and ranchers in Missouri receive the
benefits promised to them through our international trade agreements.
Unfortunately, there is a combination of factors that I find
discouraging, and that I believe underscores the need to make changes
to broader U.S. trade policy. These included China's record of
noncompliance with its trade commitments, the United States' loss of
leverage in the WTO to get cases enforced, and China's propensity to be
a protectionist market like the EU which has repeatedly blocked imports
of American agriculture.
China's record of living up to its trade agreements has been dismal.
China has frequently opened a door to U.S. companies only to frustrate
their attempts to walk through it. For example, in the early 1990s,
China reduced the import tariff on U.S. apples from 40 to 15 percent.
However, by 1996, China had erected new backdoor barriers on apples and
other agricultural products that U.S. exporters say were even more
punitive than the original import tariffs.
Another example is the 1992 Market Access Agreement in which China
agreed to eliminate trade barriers to U.S. agriculture, manufactured
products, and automobiles. Not only did China fail to comply with this
agreement, the Chinese actually made negative changes that put U.S.
businesses in a worse position than they were in prior to the
agreement. For instance, the U.S. Trade Representative reported that on
176 items, import restrictions were abolished. However, the Chinese
replaced those 176 old restrictions with 400 new restrictions that
essentially make it harder for U.S. companies to export to China. The
1999 U.S. Trade Representative report said: ``By 1999, China had
removed over 1,000 quotas and licenses. . . . But there are indications
that China is erecting new barriers to restrict imports.'' Also, China
adopted a new auto policy only two years after signing the Market
Access Agreement that put auto manufacturers at a severe disadvantage
compared to Chinese auto workers.
I agree that China's record of noncompliance, considered alone,
should not be dispositive of determining how to vote on PNTR. In fact,
the Administration says that we have nothing to lose by allowing China
into the WTO because by doing so, China agrees to ``deeper and
broader'' commitments, and the United States gets the benefits of the
WTO dispute settlement system to enforce those commitments. However, I
believe the proponents of PNTR have left out an important aspect of
this ``deal''--when the United States approves PNTR, we give up our
ability to unilaterally retaliate against China if China doesn't live
up to its commitments, and must instead rely on the WTO dispute
resolution system. Unfortunately, the WTO dispute resolution procedures
have been inadequate to enforce our rights in past cases where the
United States has successfully challenged unfair trade practices of
other countries.
One of my constituents wrote the following:
Granting PNTR will . . . reduce our ability to use
unilateral tools to respond to continued Chinese failure to
live up to its commitments. Our ability to take unilateral
action is our only leverage against the Chinese government.
Proponents of PNTR admit that only by using unilateral
actions we were able to make even modest progress on
intellectual property rights. The Chinese government has not
lived up to the promises they made in every single trade
agreement signed with the U.S. in the past ten years.
This Missourian is absolutely correct. While the process for getting
a WTO Panel Decision issued has become
[[Page S8707]]
more favorable to the United States, the ability to enforce Panel
Decisions has been diminished.
In 1994, when the United States negotiated the WTO, the United States
gave up the right to threaten higher levels of retaliation. The new
standard is much more limited. The pre-1994 standard allowed a
successful party (country) to impose a level of retaliation that was
``appropriate in the circumstances'' in relation to the violation
proved. However, now we are bound retaliation levels that the WTO
decides is ``equivalent to the nullification or impairment.'' This new
standard has impaired our ability to enforce successful decisions, such
as the one involving the export of U.S. beef to Europe.
The detrimental effect of this loss of leverage on our ability to
demand implementation of favorable WTO decisions is illustrated by the
U.S.-EU beef case. The WTO authorized retaliation of only $120 million
by the United States to address the EU's closed beef market. Compare
this figure with the $4.6 billion the United States threatened against
China when we were not bound by the WTO retaliation levels. I am not
suggesting that the United States should use retaliation levels that
are disproportionately harsh. I favor multilateral mechanisms to
determine noncompliance with trade agreements. But I believe that once
the United States has been successful in challenging another country's
trade barriers, retaliation should be authorized to ensure enforcement.
Denying the U.S. adequate tools to enforce a decision is similar to
denying a plaintiff a judgment in a case he won. ``Winning'' just for
the sake of being called the winner is not the objective when pursuing
a WTO enforcement decision. U.S. ranchers want to sell beef to the EU
not just be told by the WTO that the EU is violating its agreements.
And, if China fails to comply with its commitments in the future, we
will need to have the tools to enforce our rights.
We need a policy that ensures results, not just paper promises.
Missourians want some guarantee that inviting China into the WTO will
result in enhanced export opportunities, not just never-ending
litigation. To address the enforcement issue, I have taken a number of
steps including the following.
I worked directly with former Commerce Secretary Daley to set up a
``China Compliance and Enforcement Initiative'' within the Department
of Commerce. At a Commerce Committee hearing, I told Secretary Daley
that this would be my top priority. In response the Enforcement
Initiative was set up, which does the following:
Establishes a Deputy Assistant Secretary for China devoted to
monitoring and enforcement of China's trade agreements;
Sets up a rapid response team of 12 compliance trade specialists
based in Washington, D.C. and in China;
Provides U.S. businesses and others with detailed information about
China's accession commitments, contact names, and up-to-date
information on China's laws and regulations;
Implements an accelerated investigation procedure to encourage
China's compliance without having to initiate a WTO case (within 14
days of receiving a complaint about China's noncompliance, the rapid
response team will engage Chinese officials and try to come to a
resolution of the issue within 90 days);
Gives U.S. companies a head start in the Chinese market by launching
a trade promotion campaign, including missions, seminars, and trade
shows;
Closely monitors imports from China to ensure that our trade laws are
enforced.
Second, I am involved in an effort to get the Continued Dumping Act
(S. 61) passed so that China will be unable to continually flood U.S.
markets with unfair imports. This legislation provides for the
penalties to be given to the injured industry in the United States if
China continues to unfairly dump its products into the U.S. market
after a decision has been made and penalties have been imposed. This
bill would provide a powerful disincentive to foreign producers who
dump their products in our market because it would give a financial
benefit to U.S. manufacturers.
Third, I introduced the ``SHOW-ME'' Act (S. 2548), which says that
the United States should retain a more liberal standard of retaliation
in the WTO for China. This is a principle I support for the WTO in
general. If the United States has completed all of the required steps
by initiating, arguing, and winning a case in the WTO, we should first
give the other country some time to implement this WTO decision.
However, if the country continues to disregard a decision that has been
made by a neutral panel in the WTO, the United States should have
greater flexibility when setting levels of retaliation. I support a
policy that will give the United States more tools for enforcement, as
opposed to reducing the amount available, which is unfortunately where
recent trade negotiations have taken us.
Along these same lines, I introduced the WTO Enforcement Act (S.
1073), which would ensure that U.S. businesses and farm interests are
widely represented and heard during every stage of the WTO dispute
settlement process, especially when it is necessary to threaten
retaliation in order to enforce a WTO panel decision in their favor.
Fifth, I have worked with newly-appointed Commerce Secretary Mineta
to make trade enforcement a top priority during the remainder of this
Administration. Specifically, I have communicated with Secretary Mineta
my goal of attaining added flexibility for the United States in order
to enforce our rights. Secretary Mineta ensured me in meetings and at a
Commerce Committee hearing that this would be a priority. I am pleased
to quote from his most recent statement about the issue:
As we have recently discussed, I share your concerns about
enforcement of dispute resolution cases under the WTO and the
available means of retaliation. . . . I will make one of my
top priorities enforcement of our trade laws and compliance
with our trade agreements, particularly the WTO. Our goal
must be to ensure that panel decisions are faithfully
implemented. Let me assure you that I will work closely with
you and members of the Administration to find effective means
of retaliation when decisions are not property implemented.
These are some of the initiatives I have recently undertaken to
address Missourians'--and my own--concerns with China's past
noncompliance record and our ability to enforce agreements in the
future. I believe the job of opening markets begins, not ends, with the
signing of agreements and the approval of PNTR for China. I know we
have a continuing and great responsibility to ensure that America's
farmers, ranchers, workers, and businesses receive the full benefit of
the agreements that have been negotiated on their behalf. I embrace
this responsibility on behalf of the millions of Missourians who are
impacted by this vote and this issue. I am committed to monitor China's
compliance with our trade agreements and demand action if they fail to
keep their promises. In addition, I will continue to encourage this
Administration, and the next, to be vigilant about enforcing our
rights. Missourians deserve the opportunity to export their products
according to the terms promised in agreements.
In closing, Mr. President, I would like to reiterate the fact that
there is, quite frankly, a declining satisfaction in America's
heartland with our ability--or inability--to open foreign markets. The
only way we will rebuild confidence in trade agreements is by real
enforcement of existing agreements, not by entering into newer, more
unreliable ones.
It is time for U.S. trade policy to be fortified with a strong
foundation--that of real enforcement. It is time that our policies lead
to job creation in practice, not just in theory. It is simply
unacceptable for the Chinese to repeatedly repackage the same deal with
a new label and not live up to the commitments it makes.
I will continue to work with all parties to fashion fair trade
policies with China and all our trading partners to increase
Missourians' access to world markets, which will create more jobs and a
stronger economy. As a Senator from the Show Me State, I believe China,
and other WTO members, need to show us that they are serious about
living up to trade agreements. I will continue to work toward this
goal.
Ms. SNOWE. Mr. President, I rise today to speak on the issue we have
been debating here in the Senate for the past week--the matter of
permanent normal trade relations (PNTR) for China.
[[Page S8708]]
Mr. President, my concerns about China are longstanding. They are
based in no way on antipathy for the people of China, but rather
China's authoritarian government--a government with a human rights
track record that no one in good conscience could even defend. That is
why I opposed the annual renewal of normal trade relations for China
just last year.
At the same time, we are faced with another irrefutable fact--China
is becoming a member of the global trading community with or without
the concurrence of the United States. The fundamental question we are
faced with is whether the U.S. will be fully engaged with China during
this process.
A vote in favor of PNTR for China represents a recognition of
reality, a recognition that China currently has complete access to our
market while we have very limited access to theirs, a recognition that
China is about to burst on to the international trading scene as a full
fledged member of the World Trade Organization, a recognition that we
would be actively choosing to put ourselves at a distinct disadvantage
relative to our fellow WTO members should we fail to grant China PNTR.
A ``yes'' vote is a recognition that our success in the new century's
new global economy--which has arrived whether we care to admit it or
not--will only be as great as our willingness to be a part of it, a
recognition that we have, rightly or wrongly--and I would argue
wrongly--already de-linked our trade policy with China from our human
rights policy, and a recognition that the status quo has done little or
nothing to help improve the lot of the typical Chinese man or woman.
Mr. President, this is an imperfect bill we have before us.
Personally, I would have preferred to support a bill improved by a
number of amendments we have considered during our debate. Because I
believe we must do our utmost to impact human rights in china, to
protect against the potential impact of their massive cheap labor
market, to preserve our national security and to ensure compliance with
our trade agreements.
For instance, as my colleague, Senator Wellstone, stated on the floor
during the debate on his amendment conditioning PNTR on China's
compliance with previous U.S.-China prison labor agreements, the 1992
agreement allowed on-site inspections by U.S. Customs officials in
China to determine whether allegations that forced or prison labor were
manufacturing products were true.
Yet as soon as Taiwan's then-President Lee visited his alma mater,
Cornell University, In 1992, China demonstrated its displeasure with
the U.S. by among other things, suspending its agreement to allow U.S.
inspections. China still refuses to abide by the terms of this
agreement.
That's why I supported Senator Wellstone's amendment because I
believe it is time for China to start living up to the international
economic role it seeks. Even absent that amendment, under the WTO,
China is expected to abide by all trade agreements all the time--not
just when it is in its best interest. And I will be looking to the WTO
to hold them to that standard.
Indeed, as a WTO member, China would be subject to reams of trade
rules, and any of the organization's 138 members would demand that a
rule be enforced. I believe that this perhaps, more than anything else,
would spur the development of a market economy in china which is based
on full compliance with its trade agreements.
Moreover, it is encouraging that the Administration has put forth a
plan to monitor China's compliance with the establishment of a new
Commerce Department Deputy Assistant Secretary for China, who would be
devoted to monitoring and enforcing China's WTO trade agreements. I am
also encouraged by announcements that a ``rapid-response compliance''
team of 12 staff people working in the U.S. and China, and a China-
specific subsidy enforcement team, will be established to monitor
China's trade compliance.
Further, Mr. President, the legislation itself requires an annual
report from the USTR on Chinese compliance with WTO obligations and
instructs the USTR to work to create a multilateral mechanism at the
WTO to measure compliance. It also authorizes funding deemed necessary
for the U.S. to monitor China's compliance. This is a step in the right
direction and a necessary component of this bill.
Another issue of utmost importance as we have reviewed PNTR from the
perspective of what is in the best interests of the United States is
our ability to maintain our national security.
As my colleagues are well aware, one of a president's primary
responsibilities under the Constitution is to conduct foreign affairs,
and in doing so, Americans assume that a president is promoting our
national security and interests abroad. As trade among nations is
inexorably intertwined with political relations among nations, national
security cannot--and should not--be considered in isolation. Therefore,
it has been entirely appropriate that China's proliferation of weapons
of mass destruction have been part of this debate.
I have long been concerned about transfers of technology by China
that contribute to the proliferation of weapons of mass destruction or
missiles that could deliver them. Recent issues have involved China's
sales to Pakistan, Iran, North Korea, and Libya. On August 9, the CIA
reported that China remained a ``key supplier'' of weapons technology
and increased missile-related assistance to Pakistan in the second half
of 1999.
This is why I was a cosponsor of the Thompson-Torricelli bill and a
supporter of their amendment. It is vital that the U.S. demonstrates
that we will not turn a blind eye to China's proliferation and that we
will actively take steps to induce change.
The Thompson-Torricelli amendment did not address trade but, in fact,
was a crucial part of this debate as China continues to facilitate the
proliferation of missile technology and weapons of mass destruction, to
rogue countries. It would have provided an annual review mechanism,
mandatory penalties, and an escalating scale of responses to Chinese
proliferation of weapons of mass destruction, missile technologies, and
advanced conventional weapons.
Accordingly, I consider the passage and enactment of the Thompson-
Torricelli proposal in the future not simply to be good policy, but a
critical companion to PNTR, and I hope we will revisit this critical
issue in the 107th Congress.
Mr. President, in addition to an in concert with our national
security responsibilities, one of the most prominent national interests
of the U.S. is the promotion of human rights around the world. Indeed,
one of the ongoing and essential reasons I have voted against NTR
status for China in the past was due to its infamous human rights
abuses.
During the consideration by the House, provisions were added to the
PNTR legislation to monitor China's human rights by creating a
Congressional-Executive Commission. The Commission will submit to
Congress and the President an annual report of its findings, including
as appropriate WTO-consistent recommendations for legislative or
executive action.
I also recognize that any U.S. trade sanction taken against China
could be brought before the WTO for resolution by China. The WTO's
focus is international trade law, not human rights.
Accordingly, I supported Senator Helms' amendment that would require,
as a condition of China receiving PNTR, that the President certify that
China has taken actions regarding its human rights abuses and religious
persecution. Just as importantly, I also supported another Helms
amendment that called on U.S. businesses to conduct themselves in a
manner that reflects the basic American values of democracy, individual
liberty and justice--a voluntary code of conduct.
While both amendments were clearly defeated on grounds other than the
merits of the issue itself, I make a personal appeal to America's
businesses to conduct themselves in a manner that does credit to the
ideas we hold dear as a nation.
And I'm certain my colleagues agree that it is clearly in America's
best interest--not to mention in keeping with the principles on which
we were founded--to keep up the pressure on China to improve human
rights for its own people and it is my fervent hope that we will do so.
Mr. President, economically, U.S. companies have expressed to
Congress
[[Page S8709]]
throughout this debate that our future competitiveness and, ultimately,
our economic success as a country will be hamstrung without this
agreement--but with it, all of America will be better off. Again, while
I would have preferred to vote on a bill strengthened by the amendments
I have just discussed, I find that I must concur.
For the past two decades, the U.S. has granted China low-tariff
access to our market. And what have we gotten in return? Any number of
different trade barriers which have severely limited U.S. access to
China's market. To me, Mr. President, this has been far from fair.
Under this lopsided arrangement where China maintains nearly complete
access to our market while we face stiff barriers, this has contributed
to the increased trade deficit with China. In 1992, our trade relations
with China produced $7.5 billion in U.S. exports and $25.7 billion in
U.S. imports from China. By last year, our exports rose to $13.1
billion while our imports from China reached an astonishing $81.8
billion--a $68.7 billion deficit.
Now, some have argued that by improving the business climate in
China, we're opening the floodgates for a massive outflow of U.S.
businesses that will wish to relocate to that country. And certainly,
China will be a more attractive place to do business should PNTR be
approved.
But we must keep in mind that, under our current trade arrangement
with China, many U.S. businesses have chosen to relocate a degree of
their operations to China because Chinese tariff and non-tariff
barriers make it very difficult to export products directly to that
country. In order to gain access to the market, many firms build plants
in China--however, this strategy has been by no means without is own
problems.
In fact, businesses currently face a variety of discriminatory
practices, including technology transfer, domestic content, and export
performance requirements--in other words, that firms must export a
certain share of their production. Once China becomes a member of the
WTO--which of course we know is inevitable regardless of how we vote on
PNTR--it will lower tariffs and eliminate a wide range of non-tariff
barriers.
What does this all mean for U.S. businesses? It means that many
firms--especially small and medium-sized firms, so we're not just
talking about large corporations here--might choose instead to export
products directly to China.
In other words, a greater investment in China under the provisions of
the agreement that has been negotiated could promote an increase in
U.S. exports to China. And that's not just me talking. According to the
well-respected firm of Goldman Sachs, passage of PNTR for China can be
expected to increase our exports to China by anywhere from $12.7 to
$13.9 billion per year by 2005.
In my home state of Maine, there are a variety of facets of our
economy that can expect to benefit. Already, Maine is significantly
engaged in trade with China--to the tune of $19 million in 1998. From
agriculture to civil aircraft parts to insurance to wood products to
high-tech industries and fish products, PNTR would allow these vital
sectors of our economy to continue to complete on an even footing with
our global competitors, and to do so under WTO enforced rules.
For example, there would be zero tariffs on all semiconductors,
telecommunications equipment, and other information technology products
by 2005. Tariffs on wood and paper would be reduced from between 12 to
25 percent to between 5 and 7.5 percent. And tariffs on fish products
would be reduced from 20.5 to 11.4 percent. These are significant
numbers for significant industries in Maine.
Now, some will argue that PNTR will adversely affect our textile
industries. Mr. President, as someone who has long been concerned about
our trade agreements because of the effect they will have on the
textile and apparel industry in the U.S. and in Maine, nobody is more
sensitive to this issue that I am. Since 1994, Maine has lost 26,500
textile and apparel jobs, so I have scrutinized every trade agreement
with this situation in mind.
This legislation, however, represents an improvement over past trade
agreements I have opposed. Again, the fact is, China will become part
of the WTO. And all WTO members must abide by the Agreement on Textiles
and Clothing, or ATC, that phases out existing quotas and improves
access to the markets of developing countries. In fact, all import
quotas on textiles and apparels are to cease to exist by January 1,
2005, and China will reduce its tariffs on U.S. textiles and apparels
from 25.4% to 11.7%.
In other words, under the ATC, the U.S. will be required to end
quotas as will China. I understand that the textile industry wanted a
10-year phase out period and that opponents have contended that this
will allow massive Chinese imports to the U.S., but the U.S. has
negotiated specific protections regarding textiles and the PNTR
legislation itself contains anti-surge safeguards.
Under the bilateral trade deal, the U.S. was able to retain the right
to impose safeguard measures through 2008 and the PNTR legislation
authorizes the president to take action if products from China are
being imported in such increased quantities or under such conditions as
to cause or threaten to cause market disruptions to the domestic
producers.
Mr. President, I understand that textiles and apparels are an
inviting industry for China to utilize its vast labor pool, but I
believe that what we have negotiated and are about to enact into law
addresses this issue while still allowing us to be full participants in
the future.
And that is what this is about, Mr. President--the future--for both
the United States and China.
The fact of the matter is, recent economic development has led to a
rising standard of living for the average Chinese. Does China have a
long way to go? Absolutely. Is this a hopeful beginning? I believe it
is.
We are not going to change China overnight, with or without PNTR. But
we must start somewhere. If we are not going to use the annual review
of NTR for China as leverage for greater human rights in that nation--
and clearly, as I noted at the beginning, we seem to have long since
conceded the point, despite my protestations--then it is time to bring
the American promise to China through the promise of increased economic
opportunity for the Chinese people.
Change will be incremental at best. The Chinese government has proven
itself a master of self-perpetuation. They still control the lion's
share of finance and the means of production, and they are still a
government not of the people or for the people.
But under this new trade agreement, and as a member of the WTO, the
Chinese government will have a little less control then they had
before. They will be subject to more rules--and rules made by those
outside of China. And they will know that if they want to be a part of
the tremendous promise of the 21st century, this is their only course.
Here at home, we have choices to make as well. Will we remain
globally competitive? Will we embrace the opportunity to engage
ourselves in a market of 1.3 billion people? Or will we tie oversees to
the status quo, where China has access to our market, we don't have
access to theirs, and the human rights issue gets no better than it has
over the past ten years?
The bottom line is that the U.S.-China trade agreement--which is
contingent on PNTR--represents an unprecedented, albeit imperfect,
opportunity for the U.S. to gain access to the China market, for the
U.S. to increase trade and thereby increase innovation and prosperity
for ourselves and the generations to come. For these reasons, I will
support PNTR for China.
Mr. LEVIN. Mr. President, there are weighty arguments that can be
made on both sides of the question regarding whether or not to grant
permanent normal trade relations status, PNTR, to China. But in the end
there are two compelling arguments for granting PNTR that, I believe
outweigh the arguments against it.
The first is that our current trade relationship with China is
unacceptable and the second is that the existing annual review of our
trade relationship has failed to improve either that relationship or
the human rights situation in China. Granting China PNTR will result in
concrete improvements in our trade relationship and offers the promise
of a significantly more effective
[[Page S8710]]
tool for both monitoring and changing the human rights conditions in
that country.
When I say that our trade relationship with China is unacceptable, I
am referring to the $69 billion trade deficit with China we ran up last
year ($82 billion in imports versus $13 billion in exports). And as bad
as that deficit is, economists are predicting it will grow. These
levels are totally unacceptable. Today, access to China's highly
regulated and protected market is extremely difficult. China protects
its domestic market with high tariffs and non-tariff barriers that
limit access of foreign companies. There is also inadequate protection
of intellectual property and trade-distorting government subsidies.
There are clearly some advantages to this agreement in terms of
gaining greater access to Chinese markets. China's current trade
barriers, for instance, are especially high in the automotive sector.
Concessions made by China in the agreement with the United States to
open up their automotive sector to our exports are significant,
including tariff reductions. Before the agreement, China's auto tariffs
average 80-100 percent. China agreed to lower that to 25 percent by
2006. Before the agreement China's tariff on auto parts averages 20-35
percent. That is reduced to 10 percent by 2006 under the agreement.
There are significant tariff reductions in other areas than the auto
sector. Before the agreement, China's agricultural equipment tariffs
average about 11\1/2\ percent. China will reduce them to 5.7 percent by
2002. Before the agreement the Chinese tariff on apples, cherries and
pears is 70 percent. After the agreement, China will reduce that to 10
percent, by 2004. China's tariff on chemicals averages 14.75 percent
now, and in the agreement China has agreed to reduce it to 6.9 percent
by 2006. It also agreed to reduce its tariff on filing cabinets from 18
to 10.5 percent by 2003. Chinese tariffs on refrigerators would come
down from 25 percent to 20 percent by 2002. American farmers and
exporters have told me they believe they can export to and compete in
China with these lower tariffs.
China has also agreed to phase out its restrictive import licensing
requirements and import quotas for vehicles. China agreed to phase out
all restrictions on distribution services, such as auto maintenance and
repair industries, giving U.S. companies the right to control
distribution of their products, which is currently prohibited. In its
agreement with the European Union, which will apply to all WTO members
once China joins the WTO, China agreed to let foreign auto
manufacturers, not the Chinese government, as is currently the case,
decide what vehicles they wish to produce for the Chinese market. Also,
as a member of the WTO, China would be required to drop its local
content restrictions. Such changes are significant and long overdue.
If the status quo in our trade with China is unacceptable, so too is
our mechanism for impacting the human rights climate in that country. I
know that some have argued that Congress should not grant China PNTR
status because they are reluctant to abandon our annual human rights
review process and thus reduce our leverage with China on human rights
practices. But what real leverage has this annual review and
certification process given us when the United States has granted China
normal trade relations status every year for 21 years without
interruption? Even in 1989, after Tiananmen Square, China's normal
trade relations, NTR, status was renewed. If we can certify China even
after Tiananmen Square, what is this annual review pressure really
worth?
The human rights situation in China is miserable. That's the current
situation, the status quo before the agreement we are considering.
Describing the violations of human rights in China now doesn't answer
the question of whether we should grant China PNTR any more than
whether we should have granted PNTR to Saudi Arabia or other countries
where human rights are violated.
In other words, the current situation before this agreement is bad
regarding human rights as is true with many other countries with whom
we have PNTR. I don't see how we are worse off with this agreement in
terms of getting China to improve their human rights. In fact, the PNTR
bill we are voting on includes a specific mechanism to monitor and
report on China's human rights practices that was proposed by my
brother, Congressman Sander Levin. Through the establishment of a
congressional-executive commission on human rights, labor market issues
and the establishment of the rule of law in China we will be keeping
some public, visible and ongoing pressure on China to reform in these
areas. Even the president of the AFL-CIO, John Sweeney, who was
critical of the House vote approving PNTR acknowledged that my
brother's provisions,
. . . marked an historic turning point: a trade bill cannot
be passed in Congress anymore unless it addresses human
rights and workers' rights.
In addition to the improved human rights enforcement we gain under
PNTR, I believe it is at least possible the opening of Chinese markets
to our products and involving them more and more in the world economy
will produce human rights results which the current approach hasn't
produced.
There may be some truth in the argument that the year-to-year
certification creates some uncertainty for American businesses thinking
of investing in China if they export some of their Chinese production
back here despite their stated intention not to. This uncertainty, it
is argued, results in lower levels of US investment in China, and lower
levels of job transfers which sometimes accompanies that investment,
than would be the case without the tariff uncertainty created by the
annual review. However, it's unrealistic to expect that investments
will not be made in China by companies from other countries even if not
made by our companies. European and Asian companies will presumably
fill any gap. And they could just as easily export their Chinese-made
products to the United States, in which case more US jobs would
probably be displaced as a result of those imports than would be
displaced if American companies were the investors.
Let's assume you have an American and a German refrigerator
manufacturer vying to make refrigerators in China. If both companies
were going to ship refrigerators back to the United States, the jobs of
people making refrigerators in the United States would seemingly be at
least as much jeopardized by the German made-in-China refrigerator as
the American made-in-China refrigerator. Actually, the job displacement
would probably be less with the American made-in-China refrigerators
being sold back here because the American company is more likely to use
some US made components, stimulating at least some US exports. And not
only will European and Asian businesses probably be less likely to use
American made components in items they assemble in China, they will
probably have fewer US stockholders gaining from their investments in
China than would be the case with an American company's investment.
For instance, even though General Motors started production of the
Buick Regal two years ago in Shanghai, no GM vehicles have come back to
the US and $250 million a year worth of American made auto parts were
used in that production. As a result of General Motors and other US
vehicle manufacturers' investment in China, in 1999 Chinese imports of
US automotive parts grew by 90 percent over the prior year.
Percentagewise, China's imports of US automotive parts are increasing
faster than China's exports of automotive parts to the United States.
We are seemingly better off with some US content in Chinese-made
products than with none.
It's clear to me that the status quo is failing to improve human
rights conditions in China and failing to improve our trade
relationship with that country. Given that I believe our trade
relationship with China is intolerable and China's human rights climate
is miserable, I do not vote for PNTR to reward China. Far from it. I
have no desire to reward China for creating unfair barriers to American
products and maintaining tariffs on our exports while Chinese imports
flood our marketplace. Nor do I want to reward China for its failure to
comply with earlier trade agreements. And I have no desire to reward
China for persecuting those who only seek to practice their religious
beliefs or to secure their rights as workers. But in the end PNTR is
not a reward to China, it is a tool our country
[[Page S8711]]
should use and use aggressively to open China's markets to our goods
the way our market has been open to China's goods and to exert
meaningful pressure on China to join that community of nations that
respects basic human rights. My vote for PNTR is a vote against a
status quo that has failed to advance either of those goals. It is a
vote for a measure, however imperfect, that can move us closer to a
fair trading relationship with China and to a day when the people of
that country can enjoy their fundamental human rights.
Mr. MACK. Mr. President, I rise today to speak on the future of U.S.
trade relations with China and the impending vote on China's PNTR
status. The prosperity that this nation has enjoyed for the past 50
years has been a result of our commitment to free trade and opening
markets. Free trade benefits all--it enhances prosperity and develops
markets, essential elements to the spread of freedom, democracy, and
the rule of law. China's entry into the World Trade Organization will
also enhance American competitiveness, further our national interests,
and benefit our trading partners. But we must enter into this agreement
with our eyes open. China must comply with this agreement for it to
have meaning. The United States must vigilantly seek enforcement of all
agreements with China, including those addressing national security and
human rights.
I share the concern of my colleague, Senator Thompson, regarding
China's proliferation of weapons of mass destruction. On August 9th of
this year, the Director of Central Intelligence reported that China
remained a ``key supplier'' of weapons technology and increased-missile
related assistance to Pakistan as recently as the second half of 1999.
In the last year it has been reported that China transferred missile
technology to Libya and North Korea and may still be providing secret
technical assistance to Pakistan's nuclear program. U.S. Intelligence
has also provided evidence that the PRC has provided Iran with nuclear
technology, chemical weapons materials, and missile technology that
would violate China's commitment to observe the MTCR and U.S. laws. I
do not suggest that because of these violations we should cut off trade
with China, but we must address the fact that they are supplying rogue
nations with weapons of mass destruction. This threat to our national
security has made my decision on this vote a difficult one, and that
has been compounded by my concerns with China's repeated human rights
abuses.
I suspect that each of my colleagues has had some opportunity over
the years to hear about the human rights abuses taking place in China.
I think one of the more eloquent spokesmen for the struggle for freedom
has been Wei Jingsheng. He reminds us that those of us who live in the
luxury of freedom should not forget those who are still struggling for
liberty and freedom.
Mr. President, because of these very strong conflicting views, the
importance of open and free trade on the one hand, and the importance
of human dignity and the pursuit of freedom on the other, this has been
a difficult decision for me. But, after due consideration, I conclude
that moving toward open and free markets advances freedom in China, so
long as China is willing to abide by the rules of the WTO.
By exposing China to global competition and the benefits it has to
offer, Chinese leaders will be both obligated and empowered to more
quickly move their country toward full economic reform. And by virtue
of their business relationships, over time the Chinese people will be
exposed to information, ideas and debate from around the world. This in
turn will encourage them and their leadership to embrace the virtue and
promise of individual freedom. The reason I am willing to embrace it
has much has to do with the kinds of changes we have seen taking place
in China over the years. If they were still committed to the ideology
of the 1950's and 1960's, I do not think we would be here today. But,
they have clearly moved toward opening their economy, and we should
continue to push to open the country to freedom.
So I think it is time for us to respond to these changes by saying to
the Chinese people--we want to be engaged in free trade and competition
with you. I think, in the end, humanity will benefit. So I will cast a
vote in favor of this legislation.
Mr. President, I thank the Chair and yield the floor.
Mr. LEAHY. Mr. President, today the Senate votes on whether to
establish Permanent Normal Trade Relations with China.
This issue has been the subject of longstanding and emotional debate.
It is an issue which has divided the Congress, human rights groups and
policy experts from across the spectrum. There are strong arguments on
both sides--arguments I carefully weighed in deciding how to vote.
In the past, I have opposed extending annual Most Favored Nation
status to China because of concerns about China's egregious record on
human rights and labor rights. By many accounts, including the State
Department's, the situation there has deteriorated over the past year.
Repression of political dissent, restrictions on freedom of religion
and the persecution of ethnic minorities are realities of everyday
life. I witnessed with my own eyes the tragedy that has befallen the
people of Tibet, when I traveled there in 1988.
For Vermonters, the young Tibetan and former Middlebury College
student, Ngawang Choephel, and his mother, Sonam Dekyi, are the human
faces of the hardships and injustices endured under Chinese rule.
Ngawang was arrested more than four years ago by Chinese police when
he was in Tibet making a film about traditional Tibetan culture. He was
sentenced to 18 years in prison, despite the fact that the Chinese have
never produced a shred of evidence that he committed any crime.
President Clinton and Secretary of State Albright have personally
sought his release, to no avail. In May 1999, the U.N. Commission on
Human Rights declared his detention to be arbitrary. I have taken
countless steps in seeking his release, year after year, and so have
Senator Jeffords and Congressman Sanders.
Since 1996, Ngawang's mother sought permission to visit him. Chinese
law permits family members to visit imprisoned relatives, but for four
years the Chinese Government ignored her pleas. Finally, last month,
the Chinese Government made it possible for her to see him. She found
that he is suffering from recurrent, serious health problems, far more
serious than those of us who have followed his case closely had been
led to believe.
Thirty-two years ago, Ms. Dekyi made the dangerous journey from Tibet
to India to escape Chinese repression. She lost a child along the way.
Her remaining son is now paying a terrible price for his brave attempts
to document Tibetan culture.
No one here would disagree that in so many ways the policies and
practices of the Chinese Government stand in direct opposition to the
democratic principles upon which our country is founded. Mr. Choephel's
case is just one of many examples.
The question, however, is not whether we approve or disapprove of
this reality. It exists. The question is what can we do about it? How
can we most effectively encourage China to become a more open, humane
and democratic society?
The unavoidable fact is that our current approach has not worked. Due
process is non-existent. Ngawang Choephel and many other political
prisoners remain in custody. Many of China's workers are exploited.
Anyone who publicly expresses support for democracy is silenced. If I
thought that we could solve these problems by preventing normal trade
relations with China, I would support it without hesitation, but I do
not believe that course would achieve our long-sought solutions to
these many problems.
Preventing normal trade with China would not advance the political
and humanitarian goals that the United States has long worked for in
China, nor will it advance the economic goals we have set for ourselves
here at home.
The fact is, with or without Congress' approval, China will join the
World Trade Organization.
It will join 135 other countries in an organization which regulates
global trade. It will be part of an international economic system
created by democratic nations and governed by the rule of law. It will
be required to further liberalize an economy which is already being
transformed by trade and technology, and which has contributed to slow
but steady reform.
[[Page S8712]]
So on the one hand, preventing normal trade relations with China
would not stop China from enjoying the benefits of WTO. It will join
WTO regardless. Nor, I believe, would blocking China PNTR result in
Ngawang Choephel's release. But on the other hand, by blocking PNTR we
would deny ourselves the significant economic benefits that will result
from China's agreement to reduce tariffs and open its markets to U.S.
exports in ways that it never has before. And, I believe, we would deny
ourselves the opportunity to build a better relationship with China.
Some have suggested that this debate is about what is right and what
is wrong with the WTO. From its history of negotiating trade agreements
in secret, to inadequate consideration of labor rights, human rights
and the environment, there are plenty of problems with the WTO. These
issues are important and they absolutely should be addressed. But they
are not what this debate is about.
I have long spoken out against the lack of basic freedoms in China. I
strongly supported the Administration's decision to sponsor a
resolution condemning China at the U.N. Human Rights Commission. I have
done everything I can think of to seek Ngawang Choephel's release, and
I will continue to do so until he is released. I fervently hope that
the Chinese Government will respond to the Congress' vote in favor of
PNTR by releasing Mr. Choephel, along with others who do not belong in
prison and who in no way threaten China's security.
Until the rule of law is respected and there is an independent
judiciary that protects people's rights, until Ngawang Choephel and the
other prisoners of conscience who languish in China's prisons are free,
China will never be able to fully join the global community.
I am encouraged that the legislation that has come from the House
would create a bipartisan Helsinki-type commission to monitor, promote
and issue annual reports on human rights and worker rights in China.
This bill requires hearings on the contents of these reports, including
the recommendations of the commission, and it establishes a task force
to strengthen our ability to prevent the import of goods made with
prison or forced labor.
In the past, questions have been raised about the effectiveness of
the yearly review of China's human rights record. However, I believe
that it is important to have an annual debate on this issue, and I feel
that the Helsinki-type commission and task force will provide useful,
albeit limited, mechanisms for the examination of China's record on
these issues
I have voted for every amendment to this legislation that was
consistent with PNTR, and which would have also strengthened human
rights. I deeply regret that they were not adopted. We can expand our
trade with China, we can build a better relationship with China, and we
can also stand up for human rights. The amendments offered by Senator
Feingold, Senator Wellstone, and others were reasonable and fully
consistent with our most cherished values.
Profound differences over human rights will continue to cast a shadow
on our relationship with China, and that is unfortunate. But it is also
important to recognize that life in China is significantly different
from what it was two decades ago or even two years ago.
For the first time, Chinese citizens are starting their own
businesses. More and more Chinese are employed by foreign-owned
companies, where they generally receive higher pay and enjoy better
working conditions. State-run industries are gradually being dismantled
and state-owned houses, health clinics, schools and stores are no
longer the rule--reducing the influence that the Chinese Communist
party has over its citizens everyday lives.
Technology has also weakened the government's ability to control
people's lives. In the past year, the number of Internet addresses in
China has risen dramatically. This year, the number is expected to
exceed 20 million. With the Internet comes the exchange of information
and ideas. And the government's best efforts to stifle this exchange
are little match for a phenomenon that has transformed the lives of
people around the world, from the most open to the most closed
societies. In addition, access to print and broadcast media has
expanded rapidly, along with nonprofit and civic organizations.
It is impossible to know what path Chinese authorities will
ultimately choose--whether WTO membership and the changes it requires
will indeed contribute to real democratic reform. But it would be a
mistake for us to err on the side of isolation when there is so much
that could be gained by engagement.
The President's arguments on this issue have been persuasive. So have
the arguments of three former Presidents, six former Secretaries of
State, and nine former Secretaries of the Treasury.
I also found persuasive the fact that many Chinese democracy and
human rights activists, who have suffered the most under Chinese rule
and have the most to gain from change, support PNTR.
And so I will vote for PNTR today.
Our archaic, counterproductive and ill-conceived approach toward Cuba
is a perfect model for what we should not do in China. Our isolationist
policy, which I have long argued against, has fallen hardest on
everyday Cubans. Nothing has done more to perpetuate Castro's grip on
power, and the denial of basic freedoms there, than our embargo.
Rejecting PNTR would strengthen the same element in China--the hard-
liners who are afraid that engagement with the outside world will
dilute their power and influence. These are the same hard-liners who
are refusing to negotiate with the Dalai Lama on Tibet and who would
settle differences with Taiwan by force.
Which brings me to the issue of national security. China is an
emerging military power, with a small but growing capability to deliver
nuclear arms. It has an increasing influence in Asia, which military
experts have identified as the most likely arena for future conflict.
Passage of PNTR and China's accession to the WTO offer important
opportunities to increase China's stake in global security and
stability and to help ensure that over the long term China becomes our
competitor and not our adversary.
Moreover, this legislation will not undermine U.S. efforts to use a
full range of policy tools--diplomatic, economic and military--to
address any potential Chinese noncompliance with American interests or
international norms.
In purely commercial terms, Congress concedes nothing to China by
approving PNTR. We do not open our country to more Chinese products.
Rather, we simply maintain the present access to our economy that China
already enjoys. In return, Chinese tariffs--from telecommunications to
automobiles to agriculture--will fall by half or more over just five
years, paving the way for the export of more American goods and
services to the largest market in the world.
It is important to remember that if Congress rejects PNTR, other
countries will continue to trade with China. They will reap the trade
benefits that we have rejected.
PNTR will benefit Vermont. In the past year, Vermont exports to China
have increased significantly--from $1 million in 1998 to $6.5 million
in 1999. While this represents only a small fraction of Vermont's total
exports, lower tariff barriers are likely to help Vermonters export
their products beyond the Green Mountains to a quarter of the world's
people. More Vermont exports mean more Vermont jobs.
I recognize the concerns of some in the labor community who believe
that approving PNTR may cause the loss of some jobs in the United
States. I know that many leaders of American labor organizations are
motivated by their concern about their workers, and I respect them for
that. Behind the statistics are real people with real families who
suffer real consequences.
Some American workers will be hurt by this agreement. It is likely
that some jobs will be lost as some businesses shift operations to
China. However, trade experts generally agree that granting China PNTR
will ultimately create a more favorable trade balance by increasing
exports to China. And more American exports means more American jobs at
a time when unemployment is at a historic low.
[[Page S8713]]
I support the strong anti-surge controls that have been included in
the legislation, which will help protect American industries from a
surge in Chinese imports that disrupt U.S. markets. The bill also
authorizes funding to monitor China's compliance with its WTO
commitments.
Mr. President, as with most trade bills that have come before
Congress in the last ten years, the debate over granting PNTR for China
has become clouded with simple slogans and half-truths.
Despite what we may hope for, history has proven time and again that
there is no quick fix for the problems facing the Chinese people. And
as it becomes harder for Chinese authorities to maintain control in the
face of outside influences, the temptation to crack down on dissent may
get worse before it gets better.
But we need to look beyond next month or next year. Freer trade will
not in and of itself improve civil and political rights in China. It
will not guarantee U.S. national security. It will not create thousands
of American jobs overnight. But China's civilization is thousands of
years old. It is changing faster today than ever before. With continued
engagement on all fronts, we can, I believe, advance each of those
important goals. For my part, I personally look forward to a much more
intensive and regular dialogue with Chinese officials on these and
other issues of importance to both our countries.
At the end of this debate, all of these many issues and arguments
must be distilled to answer this one question: Is a vote for permanent
normal trade relations with China in the best interests of the United
States? The answer to that question is clearly ``yes.''
Mr. HATCH. Mr. President, this proposal has engendered one of the
most serious and genuine debates we have had recently in the Senate. I
have listened carefully to the pros and cons of H.R. 4444 which have
been expressed over the last several months as well as here on the
Senate floor in the last several weeks.
I have not come to a decision lightly and have given a great deal of
consideration to all the arguments. There is no question that China is
today a communist police state. There is no question that it has an
abysmal human rights record.
But, the question is not the state of China today. It is what impact
PNTR will have in the future, both for the United States and for China.
On balance, Mr. President, I have concluded that permanent normal
trade relations with China and passage of H.R. 4444 will contribute to
America's commercial prospects, enhance the spread of free market
principles, and further strengthen the social and economic forces in
China that will eventually sweep the police state into the dustbin of
history.
Mr. President, Asia is the state of Utah's fourth largest market.
While the predominant consumer of Utah exports is Japan, which buys
nearly $500 million of Utah's products, as China's economy grows, so
will the demand for Utah's industrial machinery, processed foods,
nutritional and health food products, electronic software, and other
products demanded by maturing societies.
This trade development cannot occur without PNTR, which will allow
the U.S. to take China to court over unfair trading practices.
Up to now, Utah's 1,200 informational technology companies have been
at a disadvantage in the Chinese market. The Chinese steal and
counterfeit virtually all software, videos, and other intellectual
property media entering the country. As the chairman of the Judiciary
Committee, which has jurisdiction over copyrights and patents, I am
most concerned with enforcing intellectual property laws both at home
and abroad. China's WTO membership will place major restraints on
pirating, the most important of which is our right to take China to the
WTO dispute settlement panels.
It is worthwhile to note, Mr. President, that the U.S., whose economy
is the most dynamic in the world, and whose producers are the most law-
abiding, will be the beneficiary of the equal enforcement of the trade
rules of the WTO, which we played a large role in shaping. This is not
merely a prediction: To date, the U.S. has won over 90 percent of the
cases we have initiated before the WTO.
If the U.S denied China PNTR, we would lose the right to go to court
and would risk surrendering our market access potential in China to our
competitors.
Mr. President, job-creating Utah businesses want PNTR. Utah's
business community understands the prospective value of China's trade
as well as the benefits of WTO. In meetings with state agricultural
groups, community leaders, as well as virtually every other major job-
creating business sector with export markets or export-market potential
in the state, the demands have been consistent: ``Give us access to
China.''
While this position is strongly held in Utah, it would be unfair to
say it is unanimous. Utah's steel worker community, for example,
opposes PNTR for China. But, with WTO, I believe many of their fears
can be addressed, since China's current ability to dump steel products
in the U.S., and anywhere else, can now be met head-on with a WTO
dispute settlement judgment that would bring sanctions against the
Chinese, not just from the U.S., but from the entire world.
I have worked hard to assure the steel interests in Utah regarding
the passage of PNTR. We passed the Steel Trade Enforcement Act of 1999,
which requires the President to consult with steel companies suffering
from dumping and to get their consent as a condition for lifting
dumping-related sanctions.
Finally, a third advantage is afforded the steel industry in the
U.S.-China Bilateral Trade Agreement, which has a 12-year restriction
on exports from China that surge into the U.S. causing sudden, often
irreparable harm to this important sector of our economy.
The fact is, the American economy dominates, and has benefitted
enormously from, the global marketplace. That includes Utah. Today, 5.2
percent of Utah's gross state product comes from merchandise exports.
Utah sent $2.6 billion of exports into the global marketplace in 1999,
and we expect an increase of about five percent in export volume for
the year 2000.
Trade-related jobs in the state, especially in the manufacturing
sector, are more stable, pay better, and tend to demand higher skills.
International trade competition is good for Utah.
There have been, and will be, job losses, but Utah's economy has
absorbed them. But, Utah also provides an excellent system for
assisting workers make transitions to new positions, including
education and training trade-displaced persons for new skills in new
industries. I will continue to support these programs.
Utah has the right type of industrial base. We have an unmatched
business climate for export-oriented companies. My state's population
is sophisticated in terms of linguistic skills, cultural experience and
tolerance, foreign travel, overseas living experience. Our
infrastructure is in place: we have an international airport; our ports
of entry are modern and automated; our freight forwarding and customs
brokerage communities are highly efficient; our merchandise and
commercial banking, insurance and other financial institutional base is
competitive with any region in the world. We are poised for another
economic take-off, and passage of PNTR so that China and the U.S. can
actively participate in the WTO is essential.
Mr. President, the WTO enhances the free market principles that I
have been committed to since I came to the Senate in 1977. I remain a
conservative who believes that the lessons of the 20th century
regarding the relationship between the free market and individual
freedoms are incontrovertible.
I remain convinced of the theses presented by such great thinkers as
the Austrian economist Friedrich Hayek and the American Nobel Laureate
Milton Friedman. Capitalism cannot exist without expanding individual
freedoms. And the growth of individual freedom is antithetical to
authoritarian control.
I believe that the opportunities of a free market which have so
essentially contributed to our own growth and development will also
benefit societies all over the world.
From this perspective, I have been a little disappointed by the way
some members have characterized aspects of this debate, particularly
when they used the term greed in opposition to
[[Page S8714]]
national security interests. I do not believe the promotion of
capitalism is synonymous with the promotion of greed. It is an excess
of self-interest that can lead to greed; but greed, of course, is not
limited to capitalist societies, and I wish to make clear that I
believe that those who are promoting PNTR for China are doing so for
honorable reasons, and not for greed.
Moreover, for individual corporations, PNTR is no guarantee of
success. Companies must still manufacture and market a good product.
They must still be competitive.
I have spoken at length about the commercial benefits of granting
PNTR for China for Utah, as numerous other speakers have discussed the
benefits to their states. But our duties here as Senators require that
we always consider the national interest as well as the local interest.
And, in this debate, we have revisited again, throughout the exchanges
we've had on numerous amendments, the broader question of the U.S.-Sino
bilateral relationship and American national security interests.
Let me be clear: I deplore the appalling human rights situation in
China today, including the repression of political expression and other
fundamental expressions of human conscience. I deplore the repugnant
practices in forced abortion and organ harvesting. All of this is
evidence of the continuing level of social backwardness and political
barbarism that remains in effect in many parts of China.
But there is a relationship between barbarism and economic autarky
that cannot be denied. The peak of modern China's human rights
atrocities--measured on a grotesque scale in human casualties--occured
during a period when China was in self-imposed economic and political
isolation from the rest of the world. During Mao's reign, through the
Cultural Revolution, and prior to the opening to the rest of the world
orchestrated by President Richard Nixon, over 40 million Chinese were
murdered or starved by their government. What a tragic reality that is,
Mr. President, but reality it is.
Capitalism corrodes communism, Mr. President. Opportunity crowds out
totalitarianism. We have certainly seen that occur since Deng Xiaoping
realized that the only way China could develop--could, in fact, recover
from nearly a quarter century of Mao's economic nihilism--was to open
to the world and to engage the free market.
One thing I'm not, Mr. President, is a pollyanna. As I've said, I am
aware of the political and human rights conditions in China today.
The fact is that many of the Chinese are also aware of the situation.
The abortion policies, for example, are not supported by the Chinese
people. Some Chinese are even becoming aware of a growing social
problem called by scholars here the ``surplus males phenomena.'' Dr.
Valerie Hudson of Brigham Young University has done excellent work in
this area.
Orwellian population practices in China have had the effect of
creating a growing demographic imbalance in Chinese society between men
and women. As the demographic bulge in men moves into young adulthood,
Chinese society will grapple with a surfeit of unmarried men. The
potential consequences for internal and external instability should be
of great concern to the Chinese authorities, as well as for us. These
are the consequences of the communist control over families for the
past two generations.
China has a huge population with a small percentage of arable land.
The Maoist answer was to kill large segments of the population through
starvation and promote the most inhumane abortion policies in the
modern era. As China has opened up to the rest of the world, however,
the Chinese are starting to recognize that the answer to population
pressures is not a totalitarian abortion policy, but economic
development that can support families.
The best example for them is Hong Kong, which has a large population
on a piece of land that has virtually no natural resources, except a
harbor. Capitalism provided the economic development that launched Hong
Kong into the developed world, probably beating the PRC to that level
of economic development by at least a century, if current predictions
hold.
Mr. President, I support PNTR because I want to see an end to the
barbarisms, such as the abortion policies, of the Chinese police state.
Capitalism corrodes communism.
We have had a long debate on a number of amendments. Frankly, many of
these amendments, all of which have been defeated on this bill, would
pass the Senate as amendments to other legislative vehicles, or as
stand-alone bills. Certainly the debate over China's deplorable record
on proliferation, and the legislative proposal presented by the
Thompson-Torricelli amendment, are worthy of further discussion and
review.
While we will end the annual most-favored nation review of the PRC,
nothing of this PNTR debate proscribes the Senate from future
initiatives regarding the bilateral U.S.-Sino relationship.
Mr. President, sometime, I believe within my lifetime, there is going
to be a change in China. There will be a transition from the current
police state. I am quite certain of that.
I am somewhat less certain--as is any other analyst--about what the
change will be. The analysts have parsed out the possibilities for us,
including chaos and disintegration, a new Chinese fascism, or another
Chinese democratic state. I say ``another,'' because Taiwan has
demonstrated conclusively that there are no particular Asian values
that prevent the Chinese people from developing, nurturing and robustly
practicing democracy.
United States policy cannot guarantee the outcome of the transition
in mainland China--it would be naive to think otherwise. But we can
influence the evolution toward the most desirable outcome. That means
promoting economic development and the values of the free market in
China. We should plant these seeds, Mr. President.
A vote for PNTR is a vote for promoting economic markets for Utah and
other American companies, for promoting economic development in China,
and for promoting the rule of law in China. PNTR is a promising means
of accomplishing these goals, not just for the benefit of U.S.
commerce, but also for long-term U.S. strategic interests.
Mr. BIDEN. Mr. President, the issue before the Senate today is not a
mundane redefinition of China's status under our trade laws. Nor does
it mark a profound shift in our policy toward the most populous nation
on earth.
The question before us--neither mundane, nor profound--is nonetheless
of vital importance to the future or our relationship with China.
Granting China PNTR and bringing China into the global trading regime
continues a process of careful engagement designed to encourage China's
development as a productive, responsible member of the world community.
It is a process which has no guarantees, but which is far superior to
the alternatives available to us.
Our decision on normalizing trade with China is best understood in
its historical context. The search for a truly modern China is now more
than a 100 years old. It arguably began at the turn of the last century
with the collapse of the Qing Dynasty and the birth of the Republic of
China under Sun Yat-sen. The search has continued through Japanese
invasion, a bloody civil war, the unmitigated disaster of the Great
Leap Backwards), the social and political upheaval of the Cultural
Revolution, and now through two decades of economic opening to the
outside world.
Viewed in this context, a vote for permanent normal trade relations
says that we welcome the emergence of a prosperous, independent, China
on the world stage. It also says we want China to be subject to
stronger, multilateral rules of economic behavior--rules about
international trade that will influence the structure of their internal
social, economic, and political systems.
Granting permanent normal trade status to China is not a new
direction in our relationship with China, Mr. President, but it is an
important change in the means we choose to pursue it. We have the
opportunity to move some, but not all, of our dealings with China into
a new forum; the forum of established, enforceable international trade
rules. This will take our economic relationship to a new level; a level
commensurate with the importance of our two economies to the world.
As important as this legislation is to our overall relationship with
China and
[[Page S8715]]
to our aspirations for China, we must keep our expectations in check.
The reality is that extending permanent normal trade relations to China
will not magically cause China's leaders to protect religious freedom,
respect labor rights, or adhere to the terms of every international
nonproliferation regime.
No single piece of legislation could accomplish those objectives:
indeed, these changes ultimately must come from within China, with such
encouragement as we can provide from outside.
Some of our colleagues disagree on this point. They would have
preferred that the China trade bill be turned into an omnibus China
Policy Act. I understand their objectives and their frustration with
the slow pace of reform in China. But amendments offered by Senator
Smith of New Hampshire--covering such diverse issues as POW/MIA
cooperation, forced labor, organ harvesting, etc.--and Senator
Wellstone of Minnesota--conditioning PNTR on substantial progress
toward the release of all political prisoners in China--pile too much
onto this legislation. Moreover, those amendments would effectively
hold the trade legislation hostage to changes in China which passing
the trade bill would promote. This seems backwards to me.
Other colleagues have such a deep reservations about trading with
China that they proposed amendments which would essentially have taken
the ``Permanent'' and the ``normal'' out of permanent normal trade
relations. Amendments offered by the junior Senator from South
Carolina, Senator Hollings, and the senior Senator from West Virginia,
Senator Byrd, reflect a deep ambivalence about the benefits to the
United States of trading with China. As I will discuss later, I share
the Senators' skepticism about the grandiose claims some have made
about the economic benefits which will flow to the United States from
this trade agreement. But we are not voting on whether to trade with
China. We are voting on whether to lock in concessions by China to open
its market to the United States. That is why I opposed their
amendments.
My opposition to efforts to turn this trade bill into an omnibus
China Policy Act, and my opposition to efforts to take the ``P'' and
the ``N'' out of PNTR, does not mean that I found all the amendments
offered during the previous two weeks of debate without merit.
Indeed, on their own merits, I would have supported a number of the
amendments offered by my colleagues. If we had considered this
legislation in May, June, or July, there might have been a realistic
possibility of resolving differences between the House and the Senate
versions of this bill. Under those circumstances, some amendments
offered here in the Senate might well have been appropriate.
For instance, Senator Feingold offered an amendment to improve the
Congressional Executive Commission on China to be established under the
terms of H.R. 4444. The modest changes in the commission suggested by
the Senator from Wisconsin are reasonable, and include making sure that
the commission produces concrete recommendations for action and that it
reports equally to both the House and the Senate. I hope that we might
revisit this issue to ensure that the special commission on China is as
effective as it can be.
Another Foreign Relations Committee colleague, Senator Wellstone,
offered several meritorious amendments, including one endorsing the
recommendations of the U.S. Commission on International Religious
Freedom with respect to China policy, and another requiring the
President to certify that China is in compliance with certain memoranda
of understanding regarding prohibition on import and export of prison
labor products.
We should seriously consider the input of the religious freedom
commission and we should hold China accountable for its failure to
implement agreements with the United States, and I look forward to
working with my colleagues on these issues in the future.
Finally, the chairman of the Foreign Relations Committee offered
several amendments, including one expressing the sense of Congress
condemning forced abortions in China. No member of Congress condones
the practice of coerced abortion in China or anyplace else. Senator
Helms, who opposes normalizing our trade with China, knows that, which
is why he offered his amendment.
Now I share the revulsion of the senior Senator from North Carolina
toward forced abortion. It is beyond the pale. But I'm concerned--as I
believe the Senator well knows--that his amendment would imperil the
entire bill and risk a major setback in our efforts to achieve the very
goals we both seek.
Sadly, that is the predicament we find ourselves in now. By delaying
consideration of this historic legislation until the last days of this
Congress, the Republican leadership has effectively denied the Senate
the opportunity to debate the merits of various amendments without also
considering the impact that any amendment, no matter how reasonable,
would have on the prospects of passing the trade bill during this
session of Congress.
So, I approach the pending vote on final passage with some
frustration at the process, but which considerable confidence that
extending permanent normal trade relations to China is in the best
interests of both the United States and the people of China.
I have listened carefully and respectfully to my colleagues on both
sides of the aisle and on both sides of this question. I share with
many of my colleagues a feeling of deep dissatisfaction with the many
deplorable aspects of China's domestic and foreign policies.
But, for reasons I want to make clear today, I do not share the
belief that by preserving the status quo in our relations with China we
will see progress.
This, in a nutshell, is the question before the Senate: shall we
stick with the status quo? Or shall we join with virtually every other
advanced economy in the world, and endorse the membership of China in a
rule-based organization that will help to encourage many of the changes
in Chinese behavior that the opponents of permanent normal trade
relations say they want to see?
While there are few simple answers to the many questions raised by
China, one thing seems clear: If we don't like Chinese behavior now,
why vote to preserve the status quo?
The answer, say some of my colleagues, is that we must preserve the
annual review of China's trade status to keep the spotlight turned on
China.
There are two problems with this answer, in my view. First, we have
never, not once in the two decades of annual reviews of China's trade
status, voted against renewal of normal trade relations. Not after the
tragedy of Tiananmen Square, not after missile launches against Taiwan,
not after so many other provocations, broken promises, and
disappointments. Annual review of China's trade status is an empty
threat--an excuse for a ritual that at one time may have served a
purpose, but that no one can seriously argue today has an affect on
China's behavior.
The second problem with this argument lies in the premise that
extending permanent normal trade relations to China means taking China
out of the limelight. I submit to you that anyone who thinks China is
going to escape scrutiny by the U.S. Congress and the American people
just because it enjoys normal trading privileges with us doesn't know
beans about politics.
As I understand their arguments, those who will vote against
normalizing our trade relationship with China believe China's foreign
and domestic policies remain so objectionable under the system of
annual review that we should not, as they put it ``reward'' China with
permanent normal trade relations.
But if there has been no improvement in China's human rights record
over the past two decades, why should we persist in the fiction of
annual review, repeating the empty threat that we might withdraw normal
trade relations? What has the annual review gained us?
I see the situation differently, Mr. President, I believe China is
changing. China is far from the kind of country that we want it to be,
or that its own long-suffering citizens are now working to build. But
no single snapshot of unsafe working conditions, of religious and
political repression, of bellicose pronouncements about Taiwan, will do
justice to the fundamental shifts that are underway in China.
[[Page S8716]]
An objective assessment of China over the past two decades reveals
sweeping changes in almost every aspect of life--changes facilitated
and accelerated by China's opening to the world. These changes are not
the result of our annual review of China's trade status. The roots of
change reach much deeper than that.
China's leaders have consciously undertaken--for their own reasons,
not ours--a fundamental transformation of the communist system that so
long condemned their great people to isolation, poverty, and misery.
They have been forced to acknowledge the failure of communism, and have
conceded the irrefutable superiority of an open market economy. The
result has been a marked improvement in living standards for hundreds
of million of Chinese citizens.
This growing prosperity for the Chinese people, in turn, has put
China on a path toward ever greater political and economic freedom. The
Chinese people, taking responsibility for their own economic
livelihood, are demanding a greater voice in the governance of China.
This is not just my analysis.
This is also the view of people inside and outside of China who are
struggling to deepen China's reforms and to extend them into the
political arena.
Dai Qing, a former Chinese rocket scientist turned political
dissident and environmentalist, testified passionately in support of
permanent normal trade relations before the Senate Foreign Relations
Committee in July. She said, ``PNTR will help reduce governmental
control over the economy and society; it will help to promote the rule
of law; and it will help to nourish independent political and social
forces in China.''
Wang Dan, the Beijing University student who helped lead the
Tiananmen Square protests and now lives in exile, says, ``Economic
change does influence political change. China's economic development
will be good for the East, as well as for the Chinese people.''
And Xie Wanjun, the Director of the Overseas Office of the China
Democratic Party--a party banned within China--says,
We support unconditional PNTR with China by the U.S.
government. . . . We believe the closer the economic
relationship between the United States and China, the more
chance for the U.S. to politically influence China, the more
chances to monitor human rights conditions in China, and the
more effective the U.S. will be to push China to launch
political reforms.
Martin Lee, Chairman of Hong Kong's Democratic Party, supports
China's entry into the World Trade Organization and the granting of
permanent normal trade relations. ``The participation of China in WTO
would not only have economic and political benefits, but would also
serve to bolster those in China who understand that the country must
embrace the rule of
law. . . .''
And Chen Shui-Bian, Taiwan's democratically elected President, said
last spring,
We feel that a democratic China will contribute to
permanent peace in this region. Therefore, we support U.S.
efforts to improve relations with China. While we seek to
normalize the cross-strait relationship, especially in the
area of business and trade, we are happy to see the United
States and China improve their economic relations. Therefore,
I am willing to support the U.S. normalization of trade
relations with the PRC.
It's not must dissidents and leading Chinese democracy advocates who
support PNTR.
At this time, I ask unanimous consent to introduce into the Record
recent statements by former Presidents Gerald Ford and Jimmy Carter,
former Secretaries of State Henry Kissinger and James Baker, Chairman
of the Federal Reserve Alan Greenspan, chairman of the Christian
Broadcasting Network Pat Robertson, former National Security Advisory
Brent Scowcroft, and yes, even former President of the United Auto
Workers and former U.S. Ambassador to China Leonard Woodcock, all of
whom support extension of permanent normal trade relations to China.
There being no objection, the material was ordered to be printed in
the Record, as follows;
Quotes in Support of Permanent Normal Trade Relations With China
Former President Gerald Ford: ``the facts are a negative
vote in the House and/or the Senate would be catastrophic,
disastrous to American agriculture; electronics,
telecommunications, autos and countless other products and
services. A negative vote in the Congress would greatly
assist our foreign competitors from Europe or Asia by giving
them privileged access to China markets and at the same time,
exclude America's farm and factory production from the vast
Chinese market.'' [remarks at distinguished Americans in
Support of PNTR event, 5/9/2000]
Former President Jimmy Carter: ``China still has not
measured up to the human rights and democracy standards and
labor standards of America. But there's no doubt in my mind
that a negative vote on this issue in the Congress will be a
serious setback and impediment for the further
democratization, freedom and human rights in China. That
should be the major consideration for the Congress and the
nation. And I hope the members of Congress will vote
accordingly, particularly those who are interested in human
rights, as I am; and those who are interested in the well-
being of American workers as I am.'' [remarks at
Distinguished Americans in Support of PNTR event, 5/9/2000]
Alan Greenspan, Chairman of the Federal Reserve: ``The
outcome of the debate on permanent normal trade relations
with China will have profound implications for the free
world's trading system and the long-term growth potential of
the American economy . . . The addition of the Chinese
economy to the global marketplace will result in a more
efficient worldwide allocation of resources and will raise
standards of living in China and its trading partners . . .
As China's citizens experience economic gains, so will the
American firms that trade in their expanding markets . . .
Further development of China's trading relationships with the
United States and other industrial countries will work to
strengthen the rule of law within China and to firm its
commitment to economic reform . . . I believe extending PNTR
to China, and full participation by China in the WTO, is in
the interests of the United States.'' [press statement at the
White House, 5/18/2000, including quote from Greenspan letter
to House of Representatives Banking Committee Chairman James
Leach released 5/8/2000]
Former Secretary of State Henry Kissinger: ``The agreement
is, of course, in our economic interest, since its grants
China what has been approved by the Congress every year for
20 years. But we are here together not for economic reasons.
We are here because cooperative relations with China are in
the American national interest. Every President, for 30
years, has come to that conclusion.'' [remarks at
Distinguished Americans in Support of PNTR event, 5/9/2000]
Former Secretary of State and Treasury James Baker: ``As a
former Secretary of Treasury and of State, I believe that
normalized trade with China is good for America on both
economic grounds and security grounds. It will help move
China in the direction of a more open society, and in time,
more responsive government. As such, normalized trade
relations with China will advance both our national
interests, as well as our national ideals, in our relations
with the world's most populous country.'' [remarks at
Distinguished Americans in Support of PNTR event, 5/9/2000]
Pat Robertson, Chairman of the Board and CEO, The Christian
Broadcasting Network, Inc.: ``If the US refuses to grant
normal trading relations with the People's Republic of China,
and if we significantly curtail the broad-based economic,
education, social and religious contacts that are being made
between the U.S. and China, we will damage ourselves and set
back the cause of those in China who are struggling toward
increased freedom for their fellow citizens.'' [letter to
Congressman Joseph Pitts, 5/10/2000]
Brent Scowcroft, USAF Lt. Gen (ret) and former National
Security Advisor: ``I'm strongly in favor of granting
permanent normal trade relations to China, not as a favor to
China, but because doing so would be very much in the U.S.
national interest. This, in my judgment, goes far beyond
American business and economic interests, as important as
these are, to key U.S. political and security interests . . .
This may be one of those rare occasions on an important issue
where there's virtually no downside to taking affirmative
action. We cannot ourselves determine the ultimate course
China will take. And denying permanent normal trade relations
will remove none of the blemishes that China's opponents have
identified. But we can take steps which will encourage China
to evolve in directions compatible with U.S. interests. To
me, granting permanent normal trade relations is one of the
most important such steps that Congress can take.''
[testimony before the Senate Commerce Committee, 4/11/2000]
Leonard Woodcock, former president of the United Auto
Workers and former U.S. Ambassador to China: ``I have spent
much of my life in the labor movement and remain deeply loyal
to its goals. But in this instance, I think our labor leaders
have got it wrong . . . American labor has a tremendous
interest in China's trading on fair terms with the Untied
States . . . The agreement we signed with China this past
November marks the largest single step ever taken toward
achieving that goal.'' [Washington Post, 3/8/2000]
Mr. BIDEN. Finally, I would like to point out that my support for
permanent normal trade relations with China is based not just on an
assessment of
[[Page S8717]]
the economic benefits to the U.S., not just on the prospects for
political reform in China, but also on the impact on our national
security. As I discussed during the debate on the Thompson amendment at
some length, improving our trade relations with China will help put the
overall relationship on a sounder footing. We need to cooperate with
China to rein in North Korea's nuclear missile ambitions, to prevent a
destabilizing nuclear arms race in South Asia, and to combat the
threats of international terrorism and narcotics trafficking. We cannot
work effectively with China in these areas if we are treating them as
an enemy in our trade relations.
Let me quote General Colin Powell, former chairman of the Joint
Chiefs of Staff: ``I think from every standpoint--from the strategic
standpoint, from the standpoint of our national interests, from the
standpoint of our trading interests and our economic interests--it
serves all of our purposes to grant permanent normal trading
relations.''
So, with all due respect to my colleagues who have brought before us
the images of the worst in China today, we must keep the full picture
before us and keep our eye on the ball. China is changing. We must do
what we can to encourage those changes.
Can we control that change? Of course not. We know that not even
those who currently hold the reins of power in China are confident that
they can control the process that is now underway. What little we know
of internal debate in China tells us that support for China's entry
into the world Trade Organization is far from unanimous there.
It is those who are most closely tied to the repressive, reactionary
aspects of the current China who are most opposed to this profound step
away from China's Communist past. I urge my colleagues who so rightly
and so passionately seek change in China to pause and reflect on that.
While we cannot dictate the future of China, we can--we must--
encourage China to follow a course that will make it a more
responsible, constructive member of the community of nations.
That is why I am proud of my sponsorship of legislation which created
Radio Free Asia, and am pleased that the bill before the Senate
includes increased support for the broadcast of independent news and
analysis to the people of China. The opening of China--to investment,
to trade, to travel, and yes, to foreign news sources--is a necessary
ingredient to the process of economic reform and political
liberalization.
Some of my colleagues have argued that we must not cast our vote on
PNTR simply on the promise of increased commercial opportunities for
American corporations. I agree, Indeed, unlike some of my colleagues--
on both sides of this question, pro and con--I do not see the question
of China's trade status simply in terms of the economic implications
for the United States.
I do not anticipate a dramatic explosion in American jobs, suddenly
created to fuel a flood of exports to China. Nor do I see the collapse
of the American manufacturing economy, as China, a nation with the
impact on the world economy about the size of the Netherlands',
suddenly becomes our major economic competitor.
Both the opponents and proponents of PNTR, I believe, have vastly
oversold the economic impact of this legislation.
For the record, let me say a few things about that aspect of this
issue. First and foremost, this vote will not determine China's entry
into the WTO. With or without our vote of support here, China will
become a member of the only international institution--created by and,
yes, strongly influenced by, the advanced industrial economies of the
world--in a position to formulate and enforce rules of fairness and
openness in international trade.
The issue for us is what role will we play in that process--will we
put the United States on record in support of change in China's
economic relations with the rest of the world? Will we put the United
States on record in support of China's participation in a rules-based
system whose basic bylaws will require fundamental changes in the
state-owned enterprises, in the People's Liberation Army conglomerates
that are the last bastions of the failed Chinese system?
Or will we put ourselves on the sidelines, and on record in favor of
the status quo?
Will we accept the deal negotiated between the United States and
China last year, in which China made every concession and we made none?
Will we accept the deal which opens China's market to products such
as Delaware's chemical and poultry exports, to Chrysler and General
Motors exports?
Or will we consign ourselves to the sidelines while other nations
cherry-pick Chinese markets and are first out of the gate in building
distribution and sales relationships there?
Our course is clear. China's growing participation in the
international community over the past quarter century has been marked
by growing adherence to international norms in the areas of trade,
security, and human rights. If you want to know what China looks like
when it is isolated, take a look at the so-called Great Leap Forward
and the Cultural Revolution. During those periods of modern Chinese
history perhaps 20 million Chinese died of starvation, religious
practice was almost stamped out entirely, and China supported Communist
insurgents in half a dozen African and East Asian countries.
I will cast my vote today in favor of change, in favor of closing
that sad chapter in China's long history.
Mr. President, I will cast my vote with Wang Dan, Dia Qing, Martin
Lee, Chen Shui-bian, and the other courageous advocates for political
and economic reform in China.
Let us continue to seek change in China, to play our role in the
search for a truly modern China.
Mr. THURMOND. Mr. President, I rise today to discuss my concerns and
views as the Senate moves toward final passage of the bill extending
permanent normal trading relations to the People's Republic of China.
I have diligently listened to the debate in the Senate and have given
careful consideration to all points of view. This has been a valuable
debate. It has educated the American people and has provided the
international community with a statement of American values and ideals.
The intentions and actions of the Government of the Communist Party
of China do give me concern. The record of China has been thoroughly
discussed during this debate. There is no question that reforms are
overdue to improve China's record related to human rights, religious
liberty, environmental protection, and the conditions of workers.
Furthermore, China's record on proliferation of weapons technology is
dangerous both to the region and to the entire world. China's abuses of
trade agreements has been well documented. Finally, the belligerence
shown toward Taiwan has been disconcerting, if not alarming.
Many amendments were offered to this legislation to address these and
other issues. I supported many of those amendments, and am disappointed
that the Senate felt it could not amend this bill, strictly for
procedural reasons. Nevertheless, I must emphasize to the world
community in general, and specifically to China, that the rejection of
these amendments does not mean the United States is unconcerned about
these matters.
Given China's record, why should the United States grant permanent
normal trade relations? I believe, that in the long term, Americans as
well as Chinese will be better off as China joins the international
economic system.
There is no doubt there will be obstacles and slow progress in the
short term. It will take years for the Chinese to fully open up their
economy and develop the legal infrastructure that will facilitate trade
and commerce. I recognize that China has made fundamental internal
economic reforms, moving away from a Marxist state run economy and
centralized planning. The liberalization of external trade should
provide the next step in the process of giving the individual Chinese
more choices. The overall effect will be that as the Chinese economy
improves, Chinese workers will be lifted from poverty. This, coupled
with the development of a legal framework for commerce, will lay the
foundation for democracy and religious freedom.
It is essential that China follow through on its obligations to the
Chinese people to advance democratic reforms, to promote human rights,
and
[[Page S8718]]
to create greater economic equality for all its citizens. The road to
democracy is paved with free markets. Free trade is the bridge to reach
out to the Chinese.
This opening of Chinese markets will be good for South Carolinians,
specifically, and Americans, generally. In the long run, America's
workers and farmers will benefit from improved trade with China and
access to what is potentially the world's largest market. Passage of
this bill will ensure a reduction in tariffs on American products.
Chinese consumers will be able to obtain high-quality U.S. agricultural
and manufactured goods and business services.
With China's permanent normal trade status and eventual membership in
the World Trade Organization (WTO), there will be stronger incentives
for China to honor its commitments to lowering trade barriers. Finally,
the United States will have access to the WTO's dispute resolution
process to arbitrate trade disputes and seek enforcement of agreements.
In short, China will be required to ``play by the rules.''
Again, I do not expect all of this to go smoothly. But I do
anticipate that opening economic doors will open other opportunities
for prosperity and freedom for the Chinese people. As China develops a
vibrant free market and a more open and democratic society, the Chinese
people will be better off, American security will be strengthened, and
the prospects for international peace will be greatly improved.
Therefore, Mr. President, despite my many concerns, and realizing
this is a long-term process, I support the extension of Permanent
Normal Trade Relations with the People's Republic of China. I
appreciate that the bill also establishes a framework for monitoring
trade agreements and for reviewing our relations with China. I strongly
encourage the next administration to be more vigilant in addressing
national security issues related to China. Finally, I am hopeful that
expanding trade with China will provide opportunities for resolving our
differences in other areas.
Mr. DASCHLE. Mr. President, since the House vote, virtually every
news account of this trade agreement has called its passage by the
Senate all but certain. After months of such predictions, some people
might conclude that the votes we are about to cast are a mere
formality. They are not. We are making history here. The votes we cast
today will have consequences. Those consequences will affect our
economic interests, and our national security interests, for decades to
come.
In one sense, the question before us is simple: Should we grant China
the same trading status as we grant nearly every other nation in the
world? Behind that question, though, is a larger question. China is
home to 1.2 billion people--one-fifth of the world's entire population.
What kind of relationship do we want with China? Do we want a China in
which American products can be distributed--and our beliefs can be
disseminated? Or do we want a China that continues to erect barriers to
American goods and American ideals? Which China is better for our
future? That is the question at the heart of this debate.
Someone who knew something about China answered that question this
way. ``Taking the long view, we simply cannot afford to leave China
forever outside the family of nations, there to nurture its fantasies,
cherish its hates and threaten its neighbors.'' My friends, it was not
President Clinton who said that. It was not Ambassador Barshefsky, or
anyone from this Administration. Richard Nixon wrote that--in 1967.
Five years later, of course, President Nixon made his historic journey
to China, ending 20 years of stony silence between our two nations.
History has shown the wisdom of that journey. Six years after
President Nixon visited, China opened its economy--at least in part--to
the outside world. Since then, China's economy has been transformed--
from a 100-percent state-owned economy to an economy in which the state
accounts for less than one-third of China's output. Along with this
economic change has come social and political change. China is now
taking the first tentative steps toward democratic local elections.
Private citizens are buying property. People are being given more
freedom to choose their schools and careers. You can now find articles
critical of the government in the Chinese press, and a wider selection
of books in Chinese bookstores. Now, China is ready to open its door to
the outside world even further. The question is: Are we going to walk
through that door?
Several people deserve special thanks for helping us reach this
point. First among them is the President. One reason our Nation's
economy is so strong today is because this President understands the
New Economy. He understand that, to win in the New Economy, we need to
maintain our fiscal discipline, invest in our future competitiveness
and open up new markets for the products Americans produce. Under his
leadership, we have negotiated more than 300 trade agreements with
other nations. Among those agreements, none is more significant than
this agreement with China. And none holds more potential promise for
our future.
I also want to acknowledge the President's team--particularly
Charlene Barshefsky--for her extraordinary skill in negotiating this
agreement. I also want to thank our colleagues in the House, Sandy
Levin and Doug Bereuter, for their bipartisan efforts to further
improve on the Administration's efforts. The Levin-Bereuter
improvements--particularly the creation of the human rights
commission--are thoughtful solutions to concerns some of my colleagues
and I had about the original agreement. Representative Levin and I
spoke frequently about those improvements during that process. I know I
speak for many in this chamber when I say we appreciate the great care
he took to make sure his improvements addressed our concerns, as well
as the concerns of our House colleagues.
Here in this chamber, I want to thank Senator Moynihan, our ranking
member on the Finance Committee, for his tireless efforts to pass this
agreement. His accomplishment is a fitting conclusion to an historic
career. I also want to thank Senator Baucus, who is a real leader on
trade issues; Chairman Roth, for his bipartisan leadership and
determination to pass this agreement; and of course the Majority
Leader, for his cooperation and leadership as well. Finally, I want to
thank my colleagues who voted against sending this agreement back to
the House. Their decision to focus on our trade relationship with China
and leave other important questions about that relationship for later
was not an easy decision to make. But it was necessary. I thank them
for making it.
We have heard many eloquent arguments for--and against--this bill.
That's as it should be. Critical decisions require careful
deliberation. No one who values the freedoms we enjoy as Americans can
possibly condone what we have heard about human rights, workers'
rights, and religious freedom in China. None of us approves of China's
frequent hostility, in the past, to the rule of law. I certainly do
not. I intend to vote for this agreement, however, not to reward China
for its past, but to engage China and help it create a different
future.
In the 22 years since it re-opened its doors to outside investors,
China's economy has grown at a rate of 10 percent a year. Still, China
remains--by Western standards--a largely poor and underdeveloped
nation. Reformers there understand that the only way China can build a
modern economy is by becoming a full and accountable member of the
international trade community. In exchange for the right to join the
World Trade Organization, they have therefore committed--in this
agreement--to make a number of extraordinary and fundamental changes.
Under this bilateral agreement, China has agreed to cut tariffs on US
exports drastically. Tariffs on agriculture products will be cut by
more than half--from 31 percent to 14 percent Tariffs on industrial
products will be cut by nearly two-thirds--from about 25 percent to 9
percent. And tariffs on American computers and other telecommunications
products will be eliminated entirely. On our end, this agreement does
not lower a single tariff or quota on Chinese goods exported to the
U.S. Not one.
China has also agreed to lower or eliminate a number of non-tariff
barriers that now make doing business in
[[Page S8719]]
China extremely difficult. Under this agreement, American businesses
will be able--for the first time--to sell and distribute their own
products in China. The Chinese government will no longer be the
monolithic middle man in every business deal. In addition, American
businesses will no longer be forced to include Chinese-made parts in
products they sell in China.
To appreciate the magnitude of these concessions, you need to
understand the hold the Chinese government now has on China's economy
and--by extension--its citizens. Today in China, the state decides what
products may be imported, and by whom. The state decides who may
distribute and sell products in China. State-owned banks decide who
gets capital to invest. For the more than half of China's workers who
are still employed by state-owned enterprises, the state decides how
much they earn, whether they are promoted, even where they live.
But the state's grip on its citizens' lives is starting to weaken and
will weaken further with this agreement. Nicholas Lardy, a China
scholar with the Brookings Institution, notes that ``the authoritarian
basis of the Chinese regime is (already) . . . eroding. . . .'' By
agreeing to let its citizens own their own businesses, and buy products
and services directly from the outside world, the Chinese government is
agreeing to further relax its authoritarian grip on its people. That is
not just in the interests of Chinese reformers. It is in our interests
as well.
None of us can know, with absolute certainty, the effect these new
economic freedoms will have on China. But I had an experience a few
years ago that makes me think there is reason to be hopeful. I was with
two other Senators on a bipartisan trip to the republics of the Former
Yugoslavia. We were there to assess what progress was being made under
the Dayton peace agreement, and what help the republics might need to
rebuild politically and economically.
One day, in Albania, I was talking to a man in his early 30's. As you
know, until 1992, Albania was arguably the most closed society in the
world. No one entered or left. And no new information was allowed in
except what the government permitted. The man I talked with said that
when he was a boy, if someone had a satellite dish, and they turned it
to face the sea, to receive uncensored information from Italy, police
would come and turn the dish around. That was for the first offense. If
the police had to come a second time, they took you off to jail.
Then the communications revolution occurred--the explosion of e-mail
and Internet. Suddenly, the government couldn't just pull the plug, or
turn the satellite dish around. Suddenly, Albania was connected to the
rest of the world.
Today, Albania is struggling to create a free society and a free
economy. The man I spoke with told me he hopes the Albania of the
future looks like America.
Today, fewer than 2.5 percent of China's people own personal
computers. And fewer than 1 million Chinese have access to the
Internet. By the end of this year, there will be 10 million Internet
users in China. By the end of next year, it's expected there will be 20
million.
Recent attempts by China to police the Internet, and punish advocates
of democratic reform, are troubling to all of us. They are also
destined to fail. By eliminating all tariffs on information technology
in China, liberalizing distribution, and allowing foreign investment in
telecommunications services--the infrastructure of the Internet, this
agreement will accelerate the telecommunications revolution in China.
That is not just in the interest of Chinese reformers. It is in our
interest as well.
Some have expressed concerns about whether China will honor the
commitments it makes in this agreement, and whether this agreement is
enforceable.
Their concerns are understandable. China has no history with the rule
of law, as we know it. The important point is: by entering the WTO,
China is agreeing--for the first time--to comply with the rules of the
international trade community. It is agreeing to settle its trade
disputes through the WTO, and to honor the WTO's decisions in those
disputes. If it does not, it will face sanctions.
This is a fundamental change. In previous disputes with China--
including our disagreements over intellectual property rights--we have
had to fight alone. But there are 135 members in the WTO. Under this
agreement, we will be able to work with those other nations, many of
whom share our concerns. China's ability to pit its trading partners
against each other will be greatly diminished. By agreeing to these
terms, China is, in fact, agreeing to live by the rule of law. And
while that agreement may be limited--for now--to trade issues,
eventually it is likely to be extended to other areas as well--
including human rights.
Rejecting this agreement, on the other hand, is likely to harm the
cause of civil rights in China. Former President Jimmy Carter--one of
the world's most respected human rights advocates--has said: ``There's
no doubt in my mind that a negative vote on this issue in the Congress
will be a serious setback and impediment for the democratization,
freedom and human rights in China.''
Respected Chinese democracy advocate Martin Lee agrees. In a letter
to President Clinton, Lee wrote that this agreement ``represents the
best long-term hope for China to become a member in good-standing in
the international community.'' Should the agreement fail, he added, ``
we fear that . . . any hope for political and legal reform process
would also recede.'' Clearly, it is in the interest of Chinese
reformers to prevent such a failure. But it is in our interest as well.
There is another reason this agreement is in our national interest,
Mr. President. It will strengthen peace and stability throughout Asia--
particularly in Taiwan. Why? Because the more China trades, the more it
has to lose from war. Taiwan's newly elected President, President Chen,
supports China's entry into the WTO.
By passing this agreement, we would put the United States Congress on
record as saying: ``If China is admitted to the WTO, Taiwan must be
permitted, too--without delay.'' China has already agreed, as part of
this agreement, to accept that condition.
As I said, Mr. President, under this agreement, China is lowering its
tariffs; we are not lowering ours. China is reducing or eliminating its
non-tariff barriers; we are not. There is another way to evaluate the
benefits of this agreement. That is by comparing China's WTO
commitments to those of another huge, largely poor and under-developed
nation: India.
India places a 40 percent tariff on US consumer goods. Under this
agreement, China will lower its tariffs to 9 percent. India places a 30
percent tariff on agriculture products. Under this agreement, China
will reduce its agriculture tariffs to an average of 14 percent. In
addition, China will eliminate all agriculture subsidies to its
farmers. That's something not even our closest ally, the European
Union, has agreed to do.
Four years ago, Congress re-wrote the rules that had governed farming
in this country for 60 years. Supporters of the new rules said at the
time that America's farmers didn't need a safety net any more because
they would make so much money selling their products to new markets
around the world. But that isn't what happened.
Instead of prospering in this New Economy, over the last four years,
family farmers and ranchers in South Dakota and across the country have
suffered through the worst economic crisis since the Great Depression.
Obviously, the lack of new market opportunities isn't the only reason
Farm Country is hurting, Mr. President. But opening new markets for
American farm products is a necessary part of the solution to the farm
crisis.
It's time for this Congress to keep its commitment to family farmers
and ranchers. It's time--at the very least--to provide access to the
new markets we said would be available when the rules were re-written
four years ago. The South Dakota Wheat Growers Association is right.
``We have everything to gain by approving PNTR with China, and nothing
to lose.''
One lesson we have learned from past experience is that trade
agreements must be specific. That is why this agreement is
painstakingly detailed. Every commitment China is making is clearly
spelled out, in black and white. We also know from past experience that
no trade agreement--not even one
[[Page S8720]]
with a nation as large as China--will solve all of our economic
challenges.
Even if we pass this agreement, we will still have a responsibility
to fix our federal farm policy--so family farmers and ranchers can get
a fair price for their products. We will still have a responsibility to
make sure all American workers can learn the new skills required by
this New Economy. And we will also still have a responsibility to
monitor how this agreement is enforced.
We have heard a great deal of concern during this debate--and rightly
so--about how China limits the rights of its citizens to organize their
fellow workers, or pray to their own God. Basic legal safeguards and
due process in China are routinely ignored in the name of maintaining
public order. News reports just before we started this debate told of
Chinese being jailed because they practice their faith in ``non-
official'' churches. Several key leaders of the China Democracy Party
have been jailed because they advocated for democratic change. Workers
rights are tightly restricted, and forced labor in prison facilities
continues.
Let me be very clear: No one should confuse endorsement of this trade
agreement with endorsement of these and other assaults against basic
human rights. Such practices are abhorrent and deeply troubling to
Americans, and to freedom-loving people everywhere.
As part of the Levin-Bereuter improvements, this agreement will
create a high-level commission--modeled after the Helsinki Commission--
that will monitor human rights in China and report annually to
Congress. We have a responsibility to support that commission.
Finally, this agreement calls on Congress to help the Chinese people
develop the institutions of a civil society that are needed to support
fair and open trade. We have a responsibility to provide that
assistance.
This is a good agreement. But it is not a panacea. And it is not
self-enforcing. If we want it to work, we have to keep working at it.
In closing, there is another quote I would like to read from
President Nixon. In a toast he made to China's leaders during his 1972
visit, he said, ``It is not our common beliefs that have brought us
together here,'' he said, ``but our common interests and our common
hopes, the interests that each of us has to maintain our independence
and the security of our peoples, and the hope that each of us has to
build a new world order in which nations and peoples with different
systems and different values can live together in peace--respecting one
another while disagreeing with one another, letting history, rather
than the battlefield, be the judge of their individual ideas.''
We have made progress toward that goal over these last 28 years. This
agreement will enable us to build on that progress. It is in China's
interest. It is in our interest. It is in the world's best interest
that we pass it. I urge you to support it.
Mr. ROTH addressed the Chair.
The PRESIDING OFFICER. The Chair recognizes the Senator from
Delaware.
Mr. ROTH. Mr. President, we have had an excellent debate over PNTR,
touching on many aspects of our complex relationship with China.
It was, indeed, important we had such an exhaustive discussion
because the vote we are about to cast on PNTR will be a defining moment
in the history of this Chamber and in the history of our country.
That is partly because passage of PNTR will create vast new
opportunities for our workers, our farmers, and businesses. But it is
also because PNTR will serve America's broader national interest in
meeting what is likely to be our single greatest foreign policy
challenge in the coming decades--managing our relations with a rising
China.
China's accession to the WTO has been the subject of intense
negotiations for the past 14 years. The market access package the U.S.
Trade Representative reached with Beijing represents, in my judgment, a
remarkable achievement. From the point of view of every sector of the
American economy, and from the perspective of every U.S. enterprise, no
matter how big or small, the agreement holds the promise of new markets
and future sales.
For the citizens of my own State of Delaware--from poultry farmers to
auto workers to those in our chemical and services businesses--gaining
access to the world's largest country and fastest-growing market, which
is what PNTR permits, offers extraordinary new opportunities.
Passage of PNTR is in our economic interest. I hope our debate has
made that clear. But I hope my colleagues and the American people have
come to understand why PNTR is also in our national interest.
To gain entry to the WTO, China has been compelled to move its
economy to a rules-based system and to end most forms of state control
within roughly 5 years. Indeed, in a number of sectors of its economy,
China will soon be more open to U.S. products and services than some of
our developed-country trading partners in Asia and Europe.
The results of China implementing its WTO obligations will be
revolutionary. But contrary to what occurred in 1949, China will be
transforming itself by adopting a fully-realized market economy,
thereby returning individual property rights and economic freedom to
the people of China.
Why has China accepted such a capitalist revolution? As Long Yongtu,
China's top WTO negotiator and Vice Minister of China's trade ministry,
said earlier this year, what is ``most significant at present [is that]
WTO entry will speed China's reform and opening up. Reform is the only
outlet for China.''
In other words, China has no choice. Its state-directed policies do
not work; free markets and capitalism do.
Mr. Long went on to say:
China's WTO entry would let enterprises make their own
business decisions and pursue benefits according to contracts
and market principles. Liaison between enterprises and
government will only hurt enterprises. Contracts kowtowing to
government, though they look rosy on the surface, usually
lead to failure. After joining the WTO, the government will
be pressed to respect market principles and give up the
approval economy.
I agree with those who say that the rise of China presents the United
States with potentially our biggest foreign policy challenge. But I
also believe it presents us with enormous opportunities. The single
most important step the Senate can take to allow the United States to
respond to that challenge adequately and seize those opportunities is
to pass PNTR.
We must, and we will, continue to press Beijing on the range of
issues where our interests and values diverge, from human rights to
proliferation to China's aggressive stance on territorial disputes.
Yet a China fully immersed in the global trade regime, subject to all
the rules and sanctions applicable to WTO members, is far likelier to
live under the rule of law and to act in ways that comply with global
norms. Indeed, the WTO is exactly the sort of multilateral institution
that can act as a reinforcing mechanism to make China's interests more
compatible with ours.
As that happens, and as China's economic success increasingly comes
to depend on stable and peaceful relations with its trading partners,
Beijing will be more apt to play a constructive regional and global
role.
Finally, if Asia and much of the rest of the world are any guide,
China's economic liberalization will accelerate its path toward greater
political freedom. In East Asia alone, South Korea, Taiwan, and
Thailand have amply demonstrated how economic freedom can stimulate
democratic evolution.
Ultimately, China's participation in the WTO means the Chinese people
will be given the chance to shape their own destiny. As Ren Wanding,
the brave leader of China's Democracy Wall Movement said recently,
``Before the sky was black. Now there is light . . . [China's WTO
accession] can be a new beginning.''
Mr. President, when we pass PNTR, that new beginning will be for the
American people just as surely as it will be for the people of China.
Colleagues, let us begin anew by joining together to pass PNTR
overwhelmingly.
The PRESIDING OFFICER. The Chair recognizes the Senator from
Virginia.
Mr. WARNER. Mr. President, throughout the 22 years I have been
privileged to be a Member of the Senate, I have worked very closely
with our distinguished colleague from Delaware, Senator Roth, and
indeed our
[[Page S8721]]
colleague from New York, Senator Moynihan. This has to mark one of
their finest hours in the Senate. Senator Moynihan has spoken with me
unreservedly on this important issue and it took the strong leadership
of our chairman and distinguished ranking member to shepherd this key
legislation through the Senate in light of the number of challenges
they faced.
I hope that not only the constituencies in their respective States
but the Nation as a whole recognize the skill with which these two very
seasoned and senior Senators have managed this most critical piece of
legislation. Passage of this legislation is in the interest of our
country economically and in terms of our security--I will dwell on the
security interests in a moment--for today, tomorrow, and the future.
As we enter this millennium, China, in my judgment, is our natural
competitor in economics, and perhaps the nation that could pose the
greatest challenges in terms of our national security. I was very much
involved, as were other Members of the Senate, indeed our two leaders,
in the amendment offered by Senator Thompson. I subscribe to so many of
his goals. Were it not for a framework of laws which adequately address
the concerns of Senator Thompson, I would most certainly have supported
his amendment. But as our two managers have pointed out, as drafted,
that amendment could have imperiled the passage of this legislation.
I am pleased to join colleagues today in supporting PNTR for China. I
join all Senators who have spoken so eloquently on the question of
human rights deprivation in China. Indeed, I have traveled there, as
almost every Member of this body has at one time, and have witnessed
with my own eyes the human rights deprivation of the citizens of that
nation. However, continued isolation, in my judgment, would strengthen
the hands of those who inflict the abrogation of human rights on those
citizens by restricting the Chinese people's contact with some of our
very finest Ambassadors. I am not just speaking of the diplomatic
corps. I am talking about the American people, be they traveling for
business or to gain knowledge about China. The American people are
among the best Ambassadors as it relates to human rights.
Our citizens, wherever they travel in the world, most particularly to
China, whether it is to conduct business or for pleasure or for other
reasons, bring with them the closely held and dearly valued principles
of a democratic society, principles of human rights. They are
unrelenting in trying to share those principles and impress upon the
people of China the value of reshaping their society along the
principles of human rights adopted by the major nations of this world,
particularly the United States. Therefore, exposing Chinese citizens to
many of the ideals that our democratic society is built upon can only
help in the strengthening of human rights in China.
It is through such contacts, which will be greatly expanded with the
passage of PNTR with China, that significant improvements can be made
in the human rights situation in China. Not providing the PNTR status
for China would also have a significant impact on both U.S. businesses
and consumers.
China imports 20 percent of the U.S. wheat and timber exports, and
they also are major importers of U.S. cotton, fertilizer, aircraft
equipment and machinery. China supplies the United States with one-
third of those wonderful gifts, particularly at Christmastime, that we
share with our children. They have always had a very innovative insight
into what the children want and a great deal of what we purchase comes
from that nation. Ten percent of our footwear, 15 percent of our
apparel, and a large percentage of our electronic products are supplied
by China. Without a PNTR agreement, duties on these products might
drastically increase and the costs be borne by the American consumer.
However, China's accession to the WTO will be a boon to U.S.
manufacturers, farmers, and service providers. As a requirement to join
the WTO, China has agreed to greatly reduce tariffs across the board.
This will in turn open markets in that huge nation, thereby providing
American business with great opportunities.
Let me take a minute to explain how such a reduction in Chinese
tariffs will beneficially impact my State, the Commonwealth of
Virginia. In 1998, Virginia's worldwide poultry and product exports
were estimated at $101 million. China is currently the second leading
market for U.S. poultry exports. Under its WTO accession agreement, by
2004, China will cut its frozen poultry products tariff in half, from
20 percent to 10 percent. The beautiful Shenandoah Valley of Virginia,
indeed, along with other regions of the State, are the heartland of our
poultry export market. They stand to benefit greatly.
In 1998, Virginia's worldwide live animal and red meat exports were
estimated at $87 million. Under its WTO accession agreement, by 2004,
China will reduce its tariffs 45 percent to 12 percent on frozen beef
cuts, from 45 to 25 percent on chilled beef, and from 20 percent to 12
percent on frozen pork cuts, definitely benefiting Virginia's exports
in these areas.
Virginia's lumber industry is the 13th largest in the Nation. China
is the world's third largest lumber importer. Under its WTO accession
agreement, China will substantially reduce tariffs on this import,
thereby dramatically opening up the market to the American lumber
industry.
Those are but a few examples of how China's accession into the WTO
will provide numerous opportunities for Virginia business, particularly
small- and medium-size companies which account for 54 percent of all
exports from Virginia to China.
I believe it is in the long-term interest of the United States to
maintain a positive trade relationship with China. I believe we can use
our relationship to foster positive social, civil, and economic changes
in China. Isolation tactics will only prevent the United States from
having any influence over guiding China towards democratic reform.
Mr. MOYNIHAN. Mr. President, I yield such time as the Senator from
Virginia may require.
Mr. WARNER. I thank my distinguished colleague. I will take but a few
more minutes.
Therefore, I intend to vote loudly and strongly for this measure.
In conclusion, I am privileged to work in the Senate in the area of
security, military and foreign relations as chairman of the Armed
Services Committee.
In light of that, I have looked very closely at China. China is
pushing many frontiers, whether it is the export of armaments or being
involved in some of the most complex and fragile relationships the
world over. We need only point out Pakistan and India and how Russia is
on one side and China is on the other side. Let's only hope that their
work with regard to that tension-filled part of the globe will be
constructive and in a way to prevent any significant confrontation
between those two nations.
Therefore, I think it is important that our military maintain its
relationship with the Chinese. Given the tenuous situation with regard
to Taiwan, and the strong principles of our Nation in trying to defend
and support that democracy, I believe such a dialogue will give us a
better opportunity to work on security relationships, whether regarding
India and Pakistan, Taiwan or other regions of the world.
Mr. President, I think we are on the verge of a very historic moment.
I commend the chairman and ranking member for their initiatives and
long weeks of hard work.
I yield the floor.
The PRESIDING OFFICER. The Senator from New York is recognized.
Mr. MOYNIHAN. Mr. President, I know Senator Roth will join me in
expressing great gratitude and appreciation for Senator Warner's
characteristic generosity. It comes from the chairman of the Armed
Services Committee, which is doubly important.
Mr. President, we are nearly there. In a short while, the Senate will
cast an epic vote. At the Finance Committee's final hearing on China
this spring, on April 6, 2000, our last witness--Ira Shapiro, former
Chief Negotiator for Japan and Canada at the Office of the U.S. Trade
Representative--put it this way:
. . . [this vote] is one of an historic handful of
Congressional votes since the end of World War II. Nothing
that members of Congress do this year--or any other year--
could be more important.
[[Page S8722]]
This achievement--for it is a crowning achievement--caps an eventful
year. All the more impressive in light of last December's ``global
disaster''--as the Economist magazine on December 11, 1999, put it--
that was the Seattle World Trade Organization Ministerial.
In January, it was thought that our long-standing trade policy was in
serious jeopardy--the trade policy that, for 66 years--ever since
Cordell Hull created the Reciprocal Trade Agreements program in 1934--
has contributed so much to our nation's prosperity.
But we have prevailed. And more. In May, the Senate took up and
passed--the vote was 77 to 19--the conference report on the Trade and
Development Act of 2000--establishing a long overdue trade policy for
sub-Saharan Africa and putting in place new trade benefits for the
Caribbean Basin countries. That measure was the most significant trade
legislation passed by the Congress in six years--ever since the Uruguay
Round Agreements Act of 1994.
Now, just four months later, we are about to give our resounding
approval to H.R. 4444, authorizing the extension of permanent normal
trade relations to China. And with this action, we will have passed
more trade legislation--important trade legislation--in this session of
Congress than any session of Congress in more than a decade.
It has taken us a long while to reach the point of final passage of
the PNTR legislation. We have most certainly not rushed this
legislation through the Senate. The House approved the measure nearly
four months ago, on May 24, by a vote of 237-197. The Senate, in
effect, began its consideration before the August recess--on July 27th,
when we invoked cloture on the motion to proceed to the bill. The vote
was a decisive 86 to 12.
By the time this vote is cast, we will have completed eleven full
days of debate. We have taken up and debated 19 amendments. We have
considered every facet of U.S.-China relations, and we are now ready to
give this measure our overwhelming approval.
And so we ought to do. We are giving up very little--the annual
review of China's trade status that has had at best an inconsequential
effect on China's domestic policies. In return, we are bringing China
back into the trading system that it helped to establish out of the
ashes of the Second World War.
For with its accession to the WTO, China merely resumes the role that
it played more than half a century ago: China was one of the 44
participants in the Bretton Woods Conference--July 1-22, 1944. It
served on the Preparatory Committee that wrote the charter for the
International Trade Organization that was to complement the
International Monetary Fund and the International Bank for
Reconstruction and Development. And China was of course one of the 23
original Contracting Parties to the General Agreement on Tariffs and
Trade--initially designed to be an interim arrangement until the ITO
Charter would come into force. It did not: the ITO failed in the Senate
Finance Committee and we were left with the GATT.
And in China, revolution intervened. The Republic of China (now on
Taiwan) notified the GATT on March 8, 1950, that it was terminating
``China's'' membership. It was not until 1986 that the People's
Republic of China officially sought to rejoin the GATT, now the World
Trade Organization. And now, after 14 years of negotiations, China is
poised to become the 139th member of the WTO.
It is elemental that China belongs in the WTO. It is in the interests
of all trading nations that a country that harbors one-fifth of
mankind, a country that is already the world's ninth largest exporter
and eleventh largest importer, abide by the rules of world trade--rules
that were, I would point out, largely written by the United States.
We, too, must abide by the WTO's rules. And thus we will approve
today the legislation extending permanent, unconditional normal trade
relations to China--fulfilling the most basic of our obligations under
the WTO's rules--nondiscriminatory treatment.
Let me leave the Senate with the following observations from Joseph
Fewsmith, an associate professor of international relations at Boston
University and a specialist on the political economy of China. He
writes in the National Bureau of Asian Research publication of July 2,
2000:
Some historical perspective is necessary when thinking
about PNTR. When President Nixon traveled to China in 1972,
China was still in the throes of the Cultural Revolution. Mao
Zedong was still in command, there were no private markets,
intellectuals were still raising pigs on so-called ``May 7
cadre schools,'' and labor camps were filled with political
prisoners. Nixon was treated to a performance of ``The Red
Detachment of Women,'' one of only eight model operas that
were permitted to be performed. Nearly three decades later--
not a long period in historical terms--China has changed
dramatically. Communes are gone, the planned economy has
shrunk to a shadow of its former self, and incomes have
increased dramatically. Personal freedoms, while by no means
perfect, are greater than at any other time in Chinese
history. China's opening to the United States is a major
reason for these changes, a dramatic demonstration of the
impact of international influence.
Mr. President, I urge my colleagues to cast their votes in support of
H.R. 4444.
I would like to attenuate my remarks simply to take up the question
of Taiwan and its accession to the WTO. This ought to be explicit and
perhaps the last thing said in this debate.
Just as China ought to be in the WTO--will be in the WTO--so will
Taiwan. Despite the bluster of senior Chinese officials,
intermittently, and recently as well, Taiwan is on track to be invited
to join the WTO at the same General Council session that will consider
China's application.
Article XII of the Agreement Establishing the WTO provides that:
. . . any State or separate customs territory possessing
full autonomy in the conduct of its external commercial
relations . . . may accede to the WTO.
In September 1992, the GATT Council--for the WTO was not yet in
existence--established a separate working party to examine Taiwan's
request for accession. The nomenclature was carefully chosen. Taiwan
was called the ``Separate Customs Territory of Taiwan, Penghu, Kinmen
and Matsu.'' That is the formulation under which Taiwan will enter the
WTO.
The President has confirmed this and confirmed in the strongest
possible terms that the United States will not accept any other
outcome. The President was adamant on this point in his letter of
September 12. A copy was sent to me, and I believe a copy was also sent
to our distinguished chairman. It says this:
There should be no question that my administration is
firmly committed to Taiwan's accession to the WTO, a point I
reiterated in my September 8 meeting with President Jiang
Zemin. Based on our New York discussions with the Chinese, I
am confident we have a common understanding that both China
and Taiwan will be invited to accede to the WTO at the same
WTO General Council session, and that Taiwan will join the
WTO under the language agreed to in 1992, namely, as the
Separate Customs Territory of Taiwan, Penghu, Kinmen and
Matsu (referred to as ``Chinese Taipei''). The United States
will not accept any other outcome.
Mr. President, I ask unanimous consent that the President's letter of
September 12 be printed in the Record at the conclusion of my remarks.
The PRESIDING OFFICER. Without objection, it is so ordered.
(See Exhibit 1.)
Mr. MOYNIHAN. Mr. President, if China should attempt to block
Taiwan's accession, I suggest to the Senate that there is a remedy.
H.R. 4444 gives the President the authority to extend permanent normal
trade relations status to China upon its accession to the WTO, but he
need not do so. Indeed, if Taiwan's membership in the WTO is blocked, I
would urge--and I am sure my beloved colleague, Senator Roth, would
urge, as I see him nodding--the President to simply refrain from
extending PNTR to China. So we ought to put this matter to rest.
I have no doubt that there will continue to be bumps--some serious
crises indeed--in our relationship with China. Neither membership in
the WTO nor normalized trade relations with the United States will
magically impose the rule of law in China or institute deep-seated
respect for human rights. But certainly it has the potential to advance
those purposes. That is why we are here and why we will shortly make
this epic decision.
Finally, if I may have the indulgence of the Senate--and I know this
is shared by the chairman--I want to read a short paragraph.
My only regret today is that with the final vote on PNTR for China,
we must
[[Page S8723]]
bid farewell to our chief trade counsel, Debbie Lamb, who joined the
Finance Committee staff over 10 years ago, in June 1990. Ms. Lamb has
played an integral part in every major piece of trade legislation over
the past decade--from the NAFTA and the Uruguay Round to our attempts
to renew so-called fast-track negotiating authority to the two pieces
of trade legislation that we passed this year: The Trade and
Development Act of 2000, and now, at last, PNTR for China. Her
knowledge and dedication to our committee's work has been exemplary.
She is something that is very rare in Washington--a person with great
breadth and great depth. The committee and I will miss her deeply as
she leaves today to pursue the next phase of a distinctly distinguished
career.
Exhibit 1
The White House,
Washington, September 12, 2000.
Hon. Daniel Patrick Moynihan,
U.S. Senate,
Washington, DC.
Dear Senator Moynihan: I want to commend you for commencing
debate on H.R. 4444, which would extend Permanent Normal
Trade Relations to the People's Republic of China. This
crucial legislation will help ensure our economic prosperity,
reinforce our work on human rights, and enhance our national
security.
Normalizing our trade relationship with China will allow
American workers, farmers, and businesspeople to benefit from
increased access to the Chinese market. It will also give us
added tools to promote increased openness and change in
Chinese society, and increase our ability to work with China
across the broad range of our mutual interests.
I want to address two specific areas that I understand may
be the subject of debate in the Senate. One is Taiwan's
accession to the World Trade Organization (WTO). There should
be no question that my Administration is firmly committed to
Taiwan's accession to the WTO, a point I reiterated in
September 8 meeting with President Jiang Zemin. Based on our
New York discussions with the Chinese, I am confident we have
a common understanding that both China and Taiwan will be
invited to accede to the WTO at the same WTO General Council
session, and that Taiwan will join the WTO under the language
agreed to in 1992, namely as the Separate Customs Territory
of Taiwan, Penghu, Kinmen and Matsu (referred to as ``Chinese
Taipei''). The United States will not accept any other
outcome.
The other area is nonproliferation, specifically the
proposals embodied in an amendment offered by Senator Fred
Thompson. Preventing the proliferation of weapons of mass
destruction and the means to deliver them is a key goal of my
Administration. However, I believe this amendment is unfair
and unnecessary, and would hurt our nonproliferation efforts.
Nonproliferation has been a priority in our dealings with
China. We have pressed China successfully to join the
Nonproliferation Treaty, the Chemical Weapons Convention, the
Biological Weapons Convention, and the Comprehensive Test Ban
Treaty, and to cease cooperation with Iran's nuclear program.
Today, we are seeking further restraints, but these efforts
would be subverted--and existing progress could be reversed
by this mandatory sanctions bill which would single out
companies based on an unreasonably low standard of suspicion,
instead of proof. It would apply a different standard for
some countries than others, undermining our global leadership
on nonproliferation. Automatic sanctions, such as cutting off
dual-use exports to China, would hurt American workers and
companies. Other sanctions, such as restricting access to
U.S. capital markets, could harm our economy by undermining
confidence in our markets. I believe this legislation would
do more harm than good.
The American people are counting on the Congress to pass
H.R. 4444. I urge you and your colleagues to complete action
on the bill as soon as possible.
Sincerely,
Bill Clinton.
Mr. ROTH. Will the Senator yield?
Mr. MOYNIHAN. Yes, of course.
Mr. ROTH. Mr. President, I only want to echo what my friend and
distinguished ranking member has said about Debbie. We have
accomplished a lot in the area of trade in recent years, and so much of
the credit should go to the staff who have worked so hard and so long.
Top among those is Debbie Lamb, who has been available not only to her
side, but has been most helpful to the majority as well. Sometimes I
think people don't recognize the cooperation that often exists between
Members of the two parties. But I think what Debbie has done shows that
bipartisanship is still alive. We would not be here celebrating today's
vote if not for her splendid contribution.
Mr. MOYNIHAN. I say to our chairman, as evidenced by the fact that
this measure was reported 19-1 in the Finance Committee.
I thank the Chair. We are at a moment of history and the omens are
excellent.
Mr. ROTH. Mr. President, in keeping with the words of my
distinguished colleague about Debbie, I want to say a few words of
thanks to all those who worked so hard on this bill.
Of course, first, I have to thank my dear friend, our venerable
colleague, and always gracious ranking member of the Finance Committee,
Pat Moynihan. It would never have been possible to be here today with
the kind of vote I think we are going to enjoy if it had not been for
Pat's leadership, for his knowledge and background, and his ability to
bring people together. I thank him for his outstanding contributions.
I also thank Senators Grassley, Thomas, Hagel, Roberts, and Rod Grams
for helping manage the floor. We were on this legislation something
like 11 days. There were times when Pat and I were called from the
floor for other duties. It was most helpful to have these other
individual colleagues helping manage the floor.
Again, I thank all of Senator Moynihan's committee staff who are just
as gracious as the Senator for whom they work. We have already talked
about Debbie Lamb. But David Podoff--I want to express my warm thanks
to you for bringing your expertise to bear on this legislative process.
I agree with Senator Moynihan. This is probably the most important
piece of legislation that will be adopted this year, if not this
decade. But again, it could not have happened without people such as
Dave.
I would also like to thank Linda Menghetti, and Timothy Hogan, as
well as Therese Lee, who I think was such a help as a member of the
Senator's personal staff.
Finally, let me thank my own staff. I would like to claim that I have
the best staff on the Hill. I certainly have one of the best, if not
the very best.
Mr. MOYNIHAN. Sir, we have the best staffs.
(Laughter.)
Mr. ROTH. I yield to my distinguished Senator on that point. I stand
corrected.
But, again, I really want to thank my personal staff, and my trade
staff, whether it is Frank Polk, who is always there when you need him,
and Grant Aldonas, Faryar Shirzad, Tim Keeler, J.T. Young, and Carrie
Clark from the Finance Committee. I also particularly want to thank
John Duncan and Dan Bob from my personal office. Dan is really one of
our great experts on Asia, and on international politics in general. I
owe him so much for his help during these last 2 weeks. Thank you all
for a job well done.
Let me say it is an honor and pleasure to work with the ranking
member.
Mr. MOYNIHAN. My honor, sir.
Mr. ROTH. I yield the floor.
Mr. MOYNIHAN. I yield the floor.
The PRESIDING OFFICER. The Chair recognizes the Senator from Wyoming.
____________________