[Public Papers of the Presidents of the United States: George H. W. Bush (1992, Book I)]
[June 2, 1992]
[Pages 881-882]
[From the U.S. Government Publishing Office www.gpo.gov]



Statement by Press Secretary Fitzwater on Continuation of China's Most-
Favored-Nation Trade Status

June 2, 1992
    The President informed the Congress today that he plans to extend 
China's most-favored-nation (MFN) status for another year. In making 
this important decision, the President stressed that it is wrong to 
isolate China if we hope to influence China.
    Section 402 of the Trade Act of 1974 explicitly links eligibility 
for MFN to the important human rights issue of free emigration. 
Continuation of the current Jackson-Vanik waiver (and thus MFN trade 
status) will substantially promote freedom of emigration from China, as 
it has since 1979. China continues to permit the departure of citizens 
who qualify for a U.S. immigrant visa.
    Although we have seen positive, if limited, developments in our 
human rights dialog, the President has made clear to the Chinese that 
their respect for internationally recognized human rights is 
insufficient. We are deeply disappointed in China's limited actions with 
regard to internationally recognized human rights and cannot describe 
our relations as fully normal until the Chinese Government effectively 
addresses these concerns. We want to elicit a faster pace and a broader 
scope for human rights improvements in China. Withdrawal of MFN would 
achieve neither of these objectives.
    Short of fully normal relations, maintaining a constructive policy 
of engagement with China has served U.S. interests. In our bilateral 
relationship, we have used the tools available to achieve the foreign 
policy goals shared by the administration and the Congress. This has 
been true of our targeted use of 301 and Special 301 trade 
investigations and our vigorous enforcement of the law against prison 
labor imports and textile fraud. Our nonproliferation dialog also has 
been successful: China has acknowledged international nonproliferation 
standards by acceding to the Nuclear Non-Proliferation Treaty and 
declaring adherence to Missile Technology Control Regime guidelines. We 
are monitoring these commitments closely.

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    We have generated positive results without withdrawing MFN from 
China. Withdrawal of MFN would inflict severe costs on American business 
people, investors, and consumers. It would mean lost jobs and failed 
businesses in the United States and a multibillion-dollar surcharge on 
American consumers' imports. Our direct engagement with the Chinese is 
on the whole a successful policy. We intend to maintain it in order 
vigorously to protect American interests while we promote positive 
change in China.

                    Note: Presidential Determination No. 92-29 on trade 
                        with China was published in the Federal Register 
                        on June 10.