    [Public Papers of the Presidents of the United States: William J. Clinton (1993, Book I)]
    [May 28, 1993]
    [Pages 772-776]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Report to Congress Concerning Extension of Waiver Authority for the
    People's Republic of China
    May 28, 1993

        Pursuant to section 402(d)(1) of the Trade Act of 1974 (hereinafter
    ``the Act''), having determined that further extension of the waiver
    authority granted by section 402(c) of the Act for the twelve-month
    period beginning July 3, 1993 will substantially promote the objectives
    of section 402, I have today determined that continuation of the waiver
    currently applicable to China will also substantially promote the
    objectives of section 402 of the Act. My determination is attached and
    is incorporated herein.

    Freedom of Emigration Determination

        In FY 1992, 26,711 U.S. immigrant visas were issued in China. The
    U.S. numerical limitation for immigrants from China was fully met. The
    principal restraint on increased emigration continues to be the capacity
    and willingness of other nations to absorb Chinese immigrants, not
    Chinese policy. After considering all the relevant information, I have
    concluded that continuing the MFN waiver will preserve the gains already
    achieved on freedom of emigration and encourage further progress. There,
    thus, continues to be progress in freedom of emigration from China; we
    will continue to urge more progress.

    Chinese Foreign Travel Policies

        In FY 1992, 75,758 U.S. visas were issued worldwide to tourists and
    business visitors from China, a 35 percent increase over FY 1991 and a
    76 percent increase over FY 1988. Foreign travel by Chinese-government
    sponsored businessmen alone increased by 48 percent in FY 1992,
    reflecting Deng Xiaoping's policies of accelerating China's opening to
    the outside world.
        In FY 1992, 18,908 student visas (including exchange students) were
    issued, a decline from FY 1991 of 14 percent but still 8 percent greater
    than FY 1988. The decline was probably the result in part of a recent
    new directive requiring Chinese college graduates educated at state
    expense to work for five years before applying for privately-funded
    overseas study. A drop in funding from recession-strapped U.S. schools
    and relatives may also have played a role.
        Chinese students continue to return from overseas for visits without
    any apparent problem. With the exception of student activist Shen Tong,
    we are not aware of any case in which Chinese living in the U.S. who
    returned to China for visits after June 1989 were prevented from leaving
    again. Shen was detained in Sep-

    [[Page 773]]

    tember 1992 and then expelled from China two months later for trying to
    establish a Beijing chapter of his Fund for Chinese Democracy.

    Human Rights Issues

        As detailed in the Department's annual human rights report, China's
    human rights practices remain repressive and fall far short of
    internationally-accepted norms. Freedoms of speech, assembly,
    association, and religion are sharply restricted.
        China understands that the Clinton Administration has made human
    rights a cornerstone of our foreign policy. We have already repeatedly
    raised our concerns with the Chinese authorities and we intend to press
    at every opportunity for observance of internationally accepted
    standards of human rights practice.
        We have made numerous requests for information on specific human
    rights cases. China has provided information on some of these cases but
    further and more complete responses are necessary. The Chinese recently
    released, prior to completion of their sentences, several prominent
    dissidents whom we had identified on lists provided to them. These
    included not only Tiananmen-era demonstrators but also Democracy Wall
    (circa 1979) activists. We hope this is the first step toward a broad
    and general amnesty for all prisoners of conscience.
        The Chinese promised then Secretary Baker in 1991 that all Chinese
    citizens, regardless of their political views, have the right to travel
    abroad. The only exceptions are citizens who are imprisoned, have
    criminal proceedings pending against them, or have received court
    notices concerning civil cases. A number of prominent dissidents,
    despite long delays, have been able to leave China. Some others have
    not. Those who have been able to obtain exit permits in the past year
    include labor leader Han Dongfang, writers Wang Ruowang and Bai Hua,
    scientist Wen Yuankai, journalists Wang Ruoshui, Zhang Weiguo, and Zhu
    Xingqing, and scholar Liu Qing. Others, like Hou Xiaotian, Yu Haocheng,
    and Li Honglin, continue to face difficulties in obtaining exit
    permission, although the Chinese have informed us Hou Xiaotian will soon
    receive an exit visa. We continue to press the Chinese on these and
    other cases.
        Our goal is the release of all those held solely for the peaceful
    expression of their political and religious views. In November 1991, the
    Chinese confirmed to Secretary Baker the release of 133 prisoners on a
    list presented them earlier in June of that year. Since then, the
    Chinese have released additional political prisoners, including Xu
    Wenli, Han Dongfang, Wang Youcai, Luo Haixing, Xiong Yan, Yang Wei, Wang
    Zhixin, Zhang Weiguo, Wang Dan, Wang Xizhe, Gao Shan, Bao Zunxin, and a
    number of Catholic clergy and lesser known activists. We continue to
    press for a general amnesty and for permission for international
    humanitarian organizations to have access to Chinese prisons. We have
    also pressed for improvement in the conditions of those in Chinese
    prisons.
        China has publicly acknowledged that domestic human rights policies
    are a legitimate topic of international discussion. China has hosted
    human rights delegations from France, Australia, the U.K., and Germany.
    China sent several delegations to the U.S. and Europe, as well as
    Southeast Asia, to study foreign human rights practices and issued a
    ``white paper'' maintaining that basic human rights are observed in
    China and arguing that a country's human rights record should be viewed
    in light of its own history and culture. We reject this limited
    definition of human rights but believe it is a significant step forward
    that China is willing to debate human rights issues with its
    international critics.
        The U.S. continually raises with the Chinese government the need for
    protection of Tibet's distinctive religion and culture. We are concerned
    about China's heavy-handed suppression of political demonstrations in
    the Tibetan Autonomous Region. Demonstrations continue to result in
    instances of brutal beatings and long detentions. China has admitted
    some foreign observers to Tibet and to the main Lhasa prison. Diplomatic
    reports state that the Chinese Government is providing funds for
    rebuilding monasteries and that monks are now provided more leeway in
    their religious practices. In recent years, an increasing number of Han
    Chinese have moved to the Tibetan Autonomous Region in search of
    economic opportunity. We will continue to monitor closely reports that
    the PRC is encouraging involuntary emigration to areas traditionally
    settled by Tibetans. So far, we have found no evidence of a Chinese
    government policy to this effect. This is, however, an area of
    considerable concern given the relatively small Tibetan population. We
    join many others in urging the Chinese government to establish
    conditions under which the unique Tibetan culture and religion will be
    protected.

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    Nonproliferation Issues

        China's support for global nonproliferation initiatives has
    increased substantially since the beginning of 1992. In March 1992,
    China acceded to the Nuclear Non-Proliferation Treaty (NPT) and adhered
    to the Missile Technology Control Regime (MTCR) guidelines and
    parameters. In January 1993, Beijing became an original signatory to the
    Chemical Weapons Convention (CWC). China now is a party to all of the
    leading nonproliferation agreements. These commitments have influenced
    Chinese behavior: Beijing has refrained from selling certain sensitive
    items because of proliferation concerns, and nonproliferation as an
    issue appears to receive more senior consideration in Chinese policy-
    making circles.
        At the same time, certain sensitive Chinese exports raise questions
    about PRC compliance with these commitments. At present, the greatest
    concern involves reports that China in November 1992 transferred MTCR-
    class M-11 missiles or related equipment to Pakistan. Such a transfer
    would violate China's MTCR commitment and trigger powerful sanctions
    under U.S. missile proliferation law. There also are reports that China
    is exercising inadequate control over sensitive nuclear, chemical, and
    missile technology exports to countries of proliferation concern. Even
    if these sales do not violate PRC obligations, they raise questions
    about China's appreciation of the importance of preventing the
    proliferation of weapons of mass destruction and their ballistic missile
    delivery systems.
        We are also concerned that China has withdrawn from the Middle East
    arms control (ACME) talks. The U.S. holds that, as a permanent member of
    the UN Security Council, China has a special responsibility to continue
    in these talks.
        Seeking full Chinese compliance with multilateral obligations and
    support for international nonproliferation goals is a top Administration
    priority. The U.S. is prepared to employ the resources under U.S. law
    and executive determinations--including the imposition of sanctions--if
    the PRC engages in irresponsible transfers that violate its commitments.

    Trade Issues, Including Prison Labor

        Reciprocal granting of MFN tariff status was a key element cementing
    the normalization of Sino-U.S. relations by providing a framework for
    major expansion of our economic and trade relations. In 1992, bilateral
    trade topped $33 billion, with Chinese exports of $25.8 billion and U.S.
    exports of $7.5 billion. China was our fastest growing export market in
    Asia in 1992 as U.S. exports to China rose by 19 percent. In turn, the
    United States remains China's largest export market, absorbing about 30
    percent of China's total exports.
        China maintains multiple, overlapping barriers to imports in an
    effort to protect non-competitive, state-owned industries. China also
    has recognized that its development goals cannot be achieved without
    gradually reducing protection and opening its domestic market to the
    stimulus for change brought by import competition.
        Our market access agreement, signed October 10, 1992, if implemented
    by the PRC, will increase opportunities for U.S. exports by phasing-out
    70 to 80 percent of China's non-tariff trade barriers over the next four
    years. The regular consultation process required by this agreement
    allows us to monitor implementation and take appropriate action should
    China violate its commitments. Progress has been made in opening the
    market to U.S. products but we still need to resolve several issues
    regarding implementation.
        Recently, the Chinese have indicated an interest in doing more
    business with U.S. companies. As U.S. corporate executives are arriving
    in droves to explore new commercial opportunities in Beijing, at least
    eight Chinese delegations have been or will soon be dispatched to the
    U.S. with orders to ``buy American''. These missions have the potential
    to generate billions of dollars of exports of aircraft, autos,
    satellites, oil drilling equipment, aviation electronics, wheat,
    fertilizer, and other U.S. products.
        Still, the large and growing U.S.-China trade deficit is
    unacceptable. The over $40 billion trade surplus China has accumulated
    with the United States since June 1989 has been very destructive to
    American industries, particularly the textile and footwear sectors,
    resulting in the loss of American jobs. It is therefore essential that
    the PRC implement the market access agreement we have negotiated, which
    would produce a much greater equilibrium and fairness in Sino-American
    trade. It is also important that China liberalize its foreign exchange
    regime, including a market-determined exchange rate. Regarding the 1992
    Intellectual Property Rights (IPR) agreement, the Chinese government has

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    carried out the great bulk of its commitments, although there are some
    problems that have arisen in implementation.

    Prison Labor

        China officially banned the export of products produced by prison
    labor in October 1991. In August 1992, we signed a Memorandum of
    Understanding under which the Chinese agreed to investigate cases we
    presented and to allow U.S. officials access to suspect facilities in
    China.
        The U.S. has presented the Chinese government information on 16
    cases of alleged use of prison labor. The Chinese have reported back on
    all 16 cases, admitting that four of the facilities involved have used
    prison labor for export production in the past. The Chinese maintain
    that the factories either have ceased exporting, or have removed
    prisoners from the production line. U.S. officials have visited three
    prisons and have standing requests to visit five others, including a
    revisit to one facility.
        In the past two years, U.S. Customs has aggressively expanded its
    enforcement of U.S. laws banning the import of prison labor products.
    Customs has issued over twenty orders banning suspected Chinese goods
    from entering the U.S., achieved one court conviction of a U.S. company
    for importing prison made machine tools and detained suspected equipment
    in another case. We are actively looking into recent allegations of
    violations of the prison labor MOU. Talks with China will continue on
    the full enforcement of the provisions of this agreement.

    Conditions for Renewal in 1994

        China has made progress in recent years in the areas of human
    rights, nonproliferation, and trade. Nevertheless, I believe more
    progress is necessary and possible in each of these three areas. In
    considering the optimal method of encouraging further progress on these
    issues, I have decided to issue the attached Executive Order which
    outlines the areas in the field of human rights with respect to which
    China, in order to receive positive consideration for a renewal of MFN
    in 1994, will have to make overall, significant progress in the next 12
    months.
        In considering extension of MFN, we will take into account Chinese
    actions with respect to the following:
        --Respecting the fundamental human rights recognized in the
            Universal Declaration of Human Rights.
        --Complying with China's commitment to allow its citizens,
            regardless of their political views, freedom to emigrate and
            travel abroad (excepting those who are imprisoned, have criminal
            proceedings pending against them, or have received court notices
            concerning civil cases).
        --Providing an acceptable accounting for and release of Chinese
            citizens imprisoned or detained for the peaceful expression of
            their political views, including Democracy Wall and Tiananmen
            activists.
        --Taking effective steps to ensure that forced abortion and
            sterilization are not used to implement China's family planning
            policies.
        --Ceasing religious persecution, particularly by releasing leaders
            and members of religious groups detained or imprisoned for
            expression of their religious beliefs.
        --Taking effective actions to ensure that prisoners are not being
            mistreated and are receiving necessary medical treatment, such
            as by granting access to Chinese prisons by international
            humanitarian organizations.
        --Seeking to resume dialogue with the Dalai Lama or his
            representatives, and taking measures to protect Tibet's
            distinctive religious and cultural heritage.
        --Continuing cooperation concerning U.S. military personnel who are
            listed as prisoners of war or missing in action.
        --Ceasing the jamming of Voice of America broadcasts.
        The Administration will also use tools under existing legislation
    and executive determinations to encourage further progress in human
    rights.
        In addition, I wish to make clear my continuing and strong
    determination to pursue objectives in the areas of nonproliferation and
    trade, utilizing other instruments available, including appropriate
    legislation and executive determinations. For example, various
    provisions of U.S. law contain strong measures against irresponsible
    proliferation of weapons of mass destruction and nuclear weapons
    technology. These include missile proliferation sanctions under the
    National Defense Authorization Act. Using these tools as necessary, we
    will continue to press China to implement its commitments to abide by
    international standards and agreements in the nonproliferation area.
        In the area of trade, the Clinton Administration will continue to
    press for full and faithful implementation of bilateral agreements with

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    China on market access, intellectual property rights, and prison labor.
    Section 301 of the 1974 Trade Act is a powerful instrument to ensure our
    interests are protected and advanced in the areas of market access and
    intellectual property rights. The Administration will also continue to
    implement vigorously the provisions of the Tariff Act of 1930 to prevent
    importation of goods made by forced labor.