THE CHINA TRADE DEBATE

May 18, 2000
		The China trade debate has split the Democratic Party and its traditional bases of support from President Clinton. But as the vote nears, it appears PNTR (Permanent Normal Trade Relations) for China will pass.

Online NewsHour Special Report: The China Trade Debate Q&A: PNTR Debate: * Free Trade * Human Rights * Labor Dec. 1, 1999: A discussion on China, trade and democracy Nov. 18, 1999: An interview with U.S. Trade Representative Charlene Barshefsky Nov. 15, 1999: A discussion on the U.S.-China Trade deal. July 30, 1999: Beijing cracks down on the meditation group Falun Gong. Feb. 26, 1999: The U.S. State Dept. releases its yearly human rights report. Dec. 30, 1998: A report on muzzling dissent in China. June 29, 1998: President Clinton challenges China on human rights. Online NewsHour Special Reports: The WTO and Global Trade The World Bank & IMF Complete NewsHour coverage of Asia     AFL-CIO Cato Institute Human Rights Watch International Brotherhood of Teamsters United States-China Business Council The White House China Trade Relations Working Group	In 1992, Arkansas Gov. Bill Clinton, a candidate for president, had to prove himself on international issues. His political opponent, Republican incumbent George Bush, raised concerns over whether a Southern governor with little or no international experience was equipped to handle complex world affairs. Clinton fired back, criticizing Bush's tempered response to the 1989 Tiananmen Square crackdown, during which Chinese troops killed scores of democratic protesters. Many in Congress called for a decisive American response. They urged the president to condemn the crackdown, and the subsequent executions that were carried out by Chinese authorities. Clinton railed against Bush, accusing him of "coddling tyrants" and conducting "business as usual with those who murdered freedom at Tiananmen Square." But, eight years later it is Clinton who is being hit with criticism of being "soft" on China. His current push for permanent normal trade relations, or PNTR, has upset many fellow Democrats, labor leaders and human rights activists. Clinton recently told an audience at Johns Hopkins University that the greatest threat to China's stability right now is the poverty of its people. And stability in the region is a major American concern, he said, noting the tenuous relations between China and Taiwan. Clinton touted economic engagement as the best way to create jobs, open society and encourage democracy in China, though he acknowledged the process can be difficult. "Only about a third of the (Chinese) economy is private enterprise," the president said. "Nearly 60 percent of the investment, and 80 percent of all business lending, still goes toward state-owned dinosaurs that are least likely to survive in the global economy … But the danger of a weak China, beset by internal chaos is also real. And the leaders of China know this, as well." "So they face a dilemma," he continued. "They realize that if they open China's markets to global competition, they risk unleashing forces beyond their control; temporary unemployment, social unrest and greater demands for freedom." Clinton changed his position on China trade in 1994, two years after defeating Bush, when he abandoned the idea that trade and human rights should be linked in policy. Many free trade advocates, who also supported Clinton during the debate over the North American Free Trade Agreement (NAFTA), are siding with Clinton again on PNTR. They agree that open trade can instill the political change necessary for China to participate in the world marketplace. Engagement "will help get wealth and resources out of the hands of the state and into the hands of the people," Mark Groombridge, a trade analyst at the Cato Institute, told the Online NewsHour. "This will help break the state monopoly of wealth and power which enables Beijing to control its citizenry." "The wrong question is: does wealth and economic growth lead to democracy?," Groombridge said. "The right question is: does a market economy foster the growth of autonomous groups outside the state?"	6-5-89: President Bush press conference 6-5-89: Two congressmen on U.S. response   More Tiananmen Coverage: 6-5-89: BBC report on the crackdown 6-8-89:Discussion on business in China 6-9-89: Fmr. Ambassador Winston Lord 6-20-89: New York Time's Harrison Salisbury The segments with the camera icon also offer RealVideo.
	Opposition to PNTR
	But opposition groups, including human rights activists, say much of that argument has yet to be proven in China. Congress has annually approved normal trade relations with China for years, but political freedom has increased very little if at all, they argue. Activists also fear that giving leaders in Beijing more economic power would increase totalitarian rule. "The Communist Party's economic reforms, launched by Deng Xiaoping, have led to more personal freedom for many of China's citizens since the 1980s, for example, related to their ability to live and work where they choose," said Michael Jendrzejczyk, Washington Director of Human Rights Watch, in a Q&A interview with the Online NewsHour. "But when it comes to political freedom or fundamental political reform, there is no evidence thus far of trade in itself improving human rights." Labor leaders are also dismayed. They see normal trade relations with China as a ticket to lost jobs and a worsening trade deficit. In a decade of annually normalized relations, the deficit with China burgeoned from approximately $6 billion in 1989 to $56.9 billion. They note that some Chinese workers are paid as little as 13 cents per hour. That cheap labor pool could convince U.S. manufacturers to move to China. Similarly, they say, investment dollars should not be sent to China, where workers' rights are minimal and human rights are abused. Under PNTR, leaders instead foresee a stronger economic relationship between the United States and China that will hurt workers in both countries. "China routinely tramples human rights and religious liberty," said AFL-CIO President John Sweeney, in testimony before the Senate Finance Committee. "It is a massive user of prison labor, and, according to the Laogai Research Foundation, operates over 1,000 forced labor camps, many of which produce commercial goods. The Chinese government does not allow workers to join free and independent trade unions and imprisons those who try to exercise this fundamental right to freedom of association and to organize." Now, Clinton's pro-trade position places him not only at odds with much of his party's base, but also with Democratic leadership. While an increasing number of House Democrats, including Rep. Charles Rangel (N.Y.), have been persuaded to support the president, Clinton has run into opposition once again from House Minority Leader Richard Gephardt (D-Mo.). Gephardt was a vociferous force against the president's 1994 trade policy shift. "Just last week, Chinese authorities again arrested a group of peaceful Falun Gong protesters in Tiananmen Square," Gephardt said in an April 19 speech announcing his opposition to PNTR. "They join thousands of their colleagues already under arrest. The Chinese government is so insecure in its power, any group that is not officially sanctioned is automatically branded subversive -- even a non-political, self-help movement like Falun Gong." "The most reliable trading partners are countries that embrace the rule of law, support the tradition of an independent legal system, and who adhere to democratic self-government at home," he continued. "Democracies tend to live up to trade and other agreements negotiated with the U.S. because the governments in those countries are ultimately responsible to their citizens." Despite such pleas, six uncommitted House members (from both parties) announced their support for PNTR Wednesday. And, both presumed major party presidential candidates -- Vice President Al Gore and Texas Gov. George W. Bush -- have pledged support to PNTR. 218 votes in the House are needed for passage. Democratic Whip David Bonior (Mi.) said two-thirds of democrats will oppose granting PNTR. But with 70-80 Democrats voting for PNTR -- along with 140-150 Republicans -- the measure will pass.