    [Public Papers of the Presidents of the United States: William J. Clinton (1993, Book I)]
    [May 28, 1993]
    [Pages 770-771]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Statement on Most-Favored-Nation Trade Status for China
    May 28, 1993

        Yesterday the American people won a tremendous victory as a majority
    of the House of Representatives joined me in adopting our plan to
    revitalize America's economic future.
        Today Members of Congress have joined me to announce a new chapter
    in United States policy toward China.
        China occupies an important place in our Nation's foreign policy. It
    is the world's most populous state, its fastest growing major economy,
    and a permanent member of the United Nations Security Council. Its
    future will do much to shape the future of Asia, our security and trade
    relations in the Pacific, and a host of global issues from the
    environment to weapons proliferation. In short, our relationship with
    China is of very great importance.
        Unfortunately, over the past 4 years our Nation spoke with a divided
    voice when it came to China. Americans were outraged by the killing of
    prodemocracy demonstrators at Tiananmen Square in June of 1989. Congress
    was determined to have our Nation's stance toward China reflect our
    outrage. Yet twice after Congress voted to place conditions on our
    favorable trade rules toward China, so-called most-favored-nation
    status, those conditions were vetoed. The annual battles between
    Congress and the Executive divided our foreign policy and weakened our
    approach over China.
        It is time that a unified American policy recognize both the value
    of China and the values of America. Starting today, the United States
    will speak with one voice on China policy. We no longer have an
    executive branch policy and a congressional policy. We have an American
    policy.
        I am happy to have with me today key congressional leaders on this
    issue. I am also honored to be joined by representatives of the business
    community and several distinguished Chinese student leaders. Their
    presence here is a tangible symbol of the unity of our purpose. I
    particularly want to recognize Senate Majority Leader George Mitchell of
    Maine and Congresswoman Nancy Pelosi of California. Their tireless
    dedication to the cause of freedom in China has given voice to our
    collective concerns. I intend to continue working closely with Congress
    as we pursue our China policy.
        We are here today because the American people continue to harbor
    profound concerns about a range of practices by China's Communist
    leaders. We are concerned that many activists and prodemocracy leaders,
    including some from Tiananmen Square, continue to languish behind prison
    bars in China for no crime other than exercising their consciences. We
    are concerned about international access to their prisons. And we are
    concerned by the Dalai Lama's reports of Chinese abuses against the
    people and culture of Tibet.
        We must also address China's role in the proliferation of dangerous
    weapons. The Gulf war proved the danger of irresponsible sales of
    technologies related to weapons of mass destruction. While the world is
    newly determined to address the danger of such missiles, we have reason
    to worry that China continues to sell them.
        Finally, we have concerns about our terms of trade with China. China
    runs an $18 billion trade surplus with the U.S., second only to Japan.
    In the face of this deficit, China continues practices that block
    American goods.
        I have said before that we do not want to isolate China, given its
    growing importance in the global community. China today is a nation of
    nearly 1.2 billion people, home to 1 of every 5 people in the world. By
    sheer size alone, China has an important impact on the world's economy,
    environment, and politics. The future of China and Hong Kong is of great
    importance to the region and to the people of America.
        We take some encouragement from the economic reforms in China,
    reforms that by some measures place China's economy as the third largest
    in the world, after the United States and Japan. China's coastal
    provinces are an en-

    [[Page 771]]

    gine for reform throughout the country. The residents of Shanghai and
    Guangzhou are far more motivated by markets than by Marx or Mao.
        We are hopeful that China's process of development and economic
    reform will be accompanied by greater political freedom. In some ways,
    this process has begun. An emerging Chinese middle class points the
    antennae of new televisions towards Hong Kong to pick up broadcasts of
    CNN. Cellular phones and fax machines carry implicit notions of freer
    communications. Hong Kong itself is a catalyst of democratic values, and
    we strongly support Governor Patten's efforts to broaden democratic
    rights.
        The question we face today is how best to cultivate these hopeful
    seeds of change in China while expressing our clear disapproval of its
    repressive policies.
        The core of this policy will be a resolute insistence upon
    significant progress on human rights in China. To implement this policy,
    I am signing today an Executive order that will have the effect of
    extending most-favored-nation status for China for 12 months. Whether I
    extend MFN next year, however, will depend upon whether China makes
    significant progress in improving its human rights record.
        The order lays out particular areas I will examine, including
    respect for the Universal Declaration of Human Rights and the release of
    citizens imprisoned for the nonviolent expression of their political
    beliefs, including activists imprisoned in connection with Tiananmen
    Square. The order includes China's protection of Tibet's religious and
    cultural heritage and compliance with the bilateral U.S.-China agreement
    on prison labor.
        In addition, we will use existing statutes to address our concerns
    in the areas of trade and arms control.
        The order I am issuing today directs the Secretary of State and
    other administration officials to pursue resolutely all legislative and
    executive actions to ensure China abides by international standards. I
    intend to put the full weight of the Executive behind this order. I know
    I have Congress's support.
        Let me give you an example. The administration is now examining
    reports that China has shipped M-11 ballistic missiles to Pakistan. If
    true, such action would violate China's commitment to observe the
    guidelines and parameters of the Missile Technology Control Regime.
    Existing U.S. law provides for strict sanctions against nations that
    violate these guidelines. We have made our concerns on the M-11 issue
    known to the Chinese on numerous occasions. They understand the serious
    consequences of missile transfers under U.S. sanctions law. If we
    determine that China has in fact transferred M-11 missiles or related
    equipment in violation of its commitments, my administration will not
    hesitate to act.
        My administration is committed to supporting peaceful democratic and
    promarket reform. I believe we will yet see these principles prevail in
    China. For in the past few years, we have witnessed a pivot point in
    history as other Communist regimes across the map have ceded to the
    power of democracy and markets.
        We are prepared to build a more cooperative relationship with China
    and wish to work with China as an active member of the international
    community. Through some of its actions, China has demonstrated that it
    wants to be a member of that community. Membership has its privileges,
    but also its obligations. We expect China to meet basic international
    standards in its treatment of its people, its sales of dangerous arms,
    and its foreign trade.
        With one voice, the United States Government today has outlined
    these expectations.

    Note: The statement referred to Christopher Patten, Governor and
    commander in chief of Hong Kong. The Executive order and related
    Presidential determination are listed in Appendix D at the end of this
    volume.