    [Weekly Compilation of Presidential Documents Volume 36, Number 15 (Monday, April 17, 2000)]
    [Pages 791-792]
    [Online from the Government Publishing Office, www.gpo.gov]

    <R04>
    Statement on Permanent Normal Trade Relations Status for China

    April 11, 2000

        Today I met with my national security team about the critical stakes
    in China's WTO accession and our decision regarding permanent normal
    trade relations.
        The economic reasons for PNTR are clearcut. Our markets already are
    open to China; the agreement we reached to bring China into the WTO
    doesn't require that we open them further in any way. What it does is to
    open China's markets to our workers, our farmers, our businesses. That
    means more jobs, growth, and exports for Americans. China will join the
    WTO regardless of what we decide to do. The decision before Congress is
    whether the United States will receive the same trade benefits from
    China as will our trade competitors.
        The national security implications are even more far-reaching.
    Bringing China into the WTO will entwine China in the global economy,
    increasing its interdependence with the rest of the world. It will bring
    the information revolution--with the knowledge and freedom of thought
    that entails--to millions of people in China in ways its Government
    cannot possibly control. It will accelerate the dismantling of China's
    state-owned enterprises--a process that is getting government out of
    people's lives and sparking social and political change all over China.
    It will strengthen China's reforms and the reformers behind them.
        That is reason enough to vote for PNTR. But I am also concerned
    about what a vote against PNTR would do. It would have extremely harmful
    consequences for our national security. Because the economic case for
    PNTR is so strong, the Chinese will see a rejection as a strategic
    decision by the United States to turn from cooperation to confrontation,
    to deal with China as an adversary. That would undercut the reform-
    minded leaders who signed this agreement with us and strengthen the hand
    of hardliners who believe cooperating with the United States is a
    mistake. Those are the same forces most threatened by our alliances with
    Japan and Korea, the same forces that want the Chinese military to sell
    dangerous technologies, and the same forces that would pursue
    confrontation with Taiwan rather than dialog.
        It's no surprise that Taiwan's President-elect Chen strongly
    supports China's membership in the WTO and wants us to grant PNTR. He
    understands the importance of the stability that will come from good
    U.S.-China relations and China's membership in the WTO. If both Beijing
    and Taiwan are in the WTO, it will increase their interdependence and,
    therefore, the cost to Beijing of confrontation. If China is shut out,
    tensions in the Taiwan Strait will likely rise. Our ability to ease them
    will diminish.
        We will spare no effort in the coming days and weeks to make sure
    that the Congress and the American people understand what the stakes
    are. And I am confident that when the debate is over and the votes are
    cast, the

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    Congress will do what is right--both for our prosperity and our
    security.