[Congressional Record (Bound Edition), Volume 146 (2000), Part 13]
[Senate]
[Pages 18221-18222]
[From the U.S. Government Publishing Office, www.gpo.gov]



              PERMANENT NORMAL TRADE RELATIONS WITH CHINA

  Mr. CLELAND. Madam President, on April 11, 2000 the Senate Commerce 
Committee held a hearing regarding the impact of China's accession to 
the World Trade Organization, WTO, on the American economy. This was a 
fascinating meeting that covered a wide range of topics from trade 
deficits and tariff barriers to national security and human rights. 
After participating in this hearing, and after months of meetings and 
speaking with Georgia farmers, small business owners, and workers, as 
well as conferring with national security experts, I have concluded 
that, on balance, establishing Permanent Normal Trade Relations (PNTR) 
with China--which is necessary for the U.S. to obtain the trade 
concessions made

[[Page 18222]]

by China in order to gain entry into the WTO--is in the best interest 
of both our national security and our economic security. Therefore, I 
plan to support the PNTR legislation that passed the House in May.
  In the April hearing, General Brent Scowcroft, the former National 
Security Advisor to President Bush, stated that granting PNTR to China 
would be, ``very much in the interest of the United States. This, in my 
judgement goes far beyond American business and economic interests, 
important as these are, to key political and security issues.'' Mr. 
President, I have just returned from a trip to Japan and Korea where 
the issue of China PNTR as it pertains to our national security, while 
not the purpose of my trip, was an important topic of discussion with 
some of our key allies in the region as well as some of the U.S. 
military's finest leaders including Admiral Dennis Blair and General 
Thomas Schwartz--the Commander in Chief of U.S. Pacific Command and the 
Commander in Chief of the U.S. Forces in Korea respectively. After 
these discussions, I am even more convinced that the Senate should 
approve PNTR as an important national security measure. Admiral Fargo, 
the Commanding Officer of the CINCPAC Fleet echoed these sentiments 
when he mentioned that the ``right answer'' to many of the difficult 
questions facing us with regard to our strategic interest in the 
region, including PNTR, ``is to engage China.''
  While in Japan, I met with Japanese Foreign Minister, Yohei Kono. 
When asked, Minister Kono stated that he believes PNTR for China and 
its upcoming membership in the WTO, will help China become a member of 
the international community and, in so doing, will help stabilize not 
only the Sino-Japanese relationship--which is a part of our national 
security since we are treaty-bound to defend Japan and because we have 
46,000 troops stationed on Japanese soil--but will further stabilize 
the entire Asia-Pacific region. I find Foreign Minister Kono's 
sentiments especially significant given the historically difficult 
relations between these two nations and given the fact that Japan would 
be a primary beneficiary of trade with China should the U.S. Congress 
not approve PNTR.
  Regarding the economic security of the U.S., granting Permanent 
Normal Trade Relations will open up China's market to countless Georgia 
goods and services, especially for Georgia's emerging high-tech and 
communications sector as well as for our largest industry--agriculture. 
Earlier this year, Tommy Irvin, Georgia's Commissioner for Agriculture, 
wrote to me that, ``Normalizing trade relations with China will surely 
aid our farmers and agribusinesses' lagging export economy, which . . . 
has slowed over the past two years due to the economic crisis in 
Southeast Asia.'' Similarly, Governor Roy Barnes has signaled his 
support for PNTR and its benefits for Georgia.
  Let me be clear that I do believe that U.S. trade with China, which 
under our current trade rules accounts for our single largest bilateral 
trade deficit, has had--and will continue to have, whether or not we 
approve PNTR--a negative effect on some American industries and 
workers, including some in my state in such areas as textiles and 
manufacturing. And I would certainly concur that China's labor, 
environmental and political rights standards fall far short of those we 
enjoy in the United States.
  However, it is my belief that the annual vote currently required 
regarding China's Most Favored Nation status has not been an effective 
tool in forcing China to expand political rights or to observe 
international rules of free and fair trade. It seems obvious to me that 
both the Chinese and American leaderships have viewed the threat of not 
passing MFN as just that, a threat, which has never been carried out--
not even after the Tiananmen Square massacre. It is important to note 
that while some Chinese dissidents in the United States have indicated 
their strong opposition to PNTR, most human rights advocates who have 
remained in China, the Hong Kong democratic opposition lead by Martin 
Lee and the government of democratic Taiwan all support PNTR for China. 
They believe that China's acceptance of the multilateral WTO as the 
arbiter of its international trade polices will, in time, produce a 
significant opening up of the Chinese economic, legal and, ultimately, 
even political systems.
  Again, let's be clear on one point. China's membership in the WTO 
will happen with or without the support of the U.S. Congress. Should 
Congress not pass PNTR, then businesses in the European Union, Japan 
and other nations will gain the benefits of Chinese trade concessions 
plus fair trade enforcement by the WTO, while U.S. exporters will be 
left behind.
  Each trade agreement is different and I am not one who believes that 
so-called free trade is always and necessarily a good thing for 
America. Several months ago, I voted against the Caribbean Basin 
Initiative and the Sub-Saharan African Trade bill because I thought the 
net effect on the U.S. economy was not going to be positive. In 
contrast, the trade agreement signed with China in November of 1999--
which is contingent on our approval of PNTR for China--would slash 
Chinese tariffs on U.S. goods and services with no concessions by the 
United States.
  While increased trade with China will likely result in a net benefit 
for the American economy, we must not ignore the possible impact upon 
industries, such as textiles and auto manufacturing, that have been 
adversely impacted under previous trade agreements such as NAFTA or 
indeed under our current trade policies--including annual MFN review--
toward China. Nor should we ignore China's performance on the whole 
range of issues important to our bilateral relationship, including its 
labor and environmental standards, its respect for the human rights of 
its own citizens, its involvement in the proliferation of weapons of 
mass destruction and their delivery systems, its relationship with 
Taiwan, and its efforts to promote stability in such key regions as the 
Korean Peninsula and the Indian Subcontinent. We can, and should, 
vigorously defend our national interests in these matters through 
diplomacy, targeted sanctions, and other appropriate means.
  However, in my opinion, none of our legitimate concerns about China 
will be effectively pursued via a continuation of our current annual 
review of trade relations with that country. There is little evidence 
to suggest that this current policy has produced any appreciable 
modification of Chinese behavior on trade, human rights or the other 
issues. On the other hand, a vote for permanent normal trade relations 
for China will, while relinquishing what I regard as an ineffective 
policy tool, secure greater access to the Chinese market for American 
companies, and will make the U.S. a full party to international efforts 
to enforce China's compliance with the terms of the WTO accession 
agreement. And approval of PNTR will in no way prevent the United 
States from considering other, more effective responses to the actions 
of the Chinese government. Therefore, I intend to vote for PNTR for 
China.

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