[Congressional Record Volume 146, Number 140 (Monday, October 30, 2000)]
[Extensions of Remarks]
[Page E2030]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 CHINA AND PNTR: SUCCESS STORIES NEEDED

                                 ______
                                 

                          HON. EVA M. CLAYTON

                           of north carolina

                    in the house of representatives

                        Monday, October 30, 2000

  Mrs. CLAYTON. Mr. Speaker, one of the truly momentous decisions 
reached by this Congress was to approve Permanent Normal Trade 
Relations with China. Supporters of PNTR worked very hard to achieve 
this outcome, which held out so much promise for the development of 
stronger trade and business ties between China and the United States. 
Now, the major challenge facing both countries will be to show positive 
results that justify such extraordinary efforts and faith in the 
future.
  Like many of my colleagues, I voted for PNTR and view with hope the 
potential for mutual benefits. For that reason, it concerns me to learn 
of examples where American companies have encountered unexpected 
difficulties in trying to do business in China. One such distressing 
case of which I am aware involves Panda Energy. Panda is a Dallas-
headquartered company with a significant gas-fired cogeneration power 
plant located in Roanoke Rapids, North Carolina, within my 
Congressional district. Based upon an earlier agreement reached with 
the local Chinese government, in 1995, Panda began construction of a 
major, private, foreign-invested plant near Tangshan in Hebei Province. 
unfortunately, while that facility is now completed and ready to 
commence generating electricity, it is still not operational. Why? 
Because the local government has failed to honor its agreement to grant 
a reasonable tariff computed on a negotiated formula. The situation is 
even more complicated and troubling in its implications, because 
construction of the facility was financed through the U.S. capital 
markets in good faith reliance on this agreement. Unless a fair tariff 
is granted soon, the bonds are in danger of default, putting at 
financial risk not only the investors but also the company.
  Mr. Speaker, Panda's experience in China is disappointing and 
contrary to the spirit of PNTR. Therefore, I would urge the Beijing 
government and its Ambassador to the U.S., His Excellency Li Zhao Xing, 
to review this situation carefully and do everything possible to find a 
fair and workable solution. It is not too late to avoid an 
unnecessarily negative precedent that could undermine high hopes raised 
by passage of the PTNR legislation.

                          ____________________