[Weekly Compilation of Presidential Documents Volume 29, Number 21 (Monday, May 31, 1993)]
[Pages 981-982]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
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 engine 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

[[Page 982]]

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.