House Passes China Trade Bill

Dateline: 05/24/00

The U.S. House of Representatives today by a vote of  237 - 197, has approved H.R. 4444 -- a bill authorizing the extension by the United States of permanent normal trade relations (PNTR) status to the People's Republic of China. 

The granting of PNTR by the United States would clear the way for China's entry into the World Trade Organization and enable free trade with American businesses and industries. Goods from China could be granted the same lower tariff rates in U.S. markets as currently extended to other nations. China has gotten many of these trade advantages for several years, but they have been granted subject to annual review.

A rare event took place on the floor of the House during the last two days of debate -- some minds were actually changed.

Opening today's final debate on free trade with China, Rep. Bill Archer of Texas told his fellow House Members, "This will be the most important vote we cast in our Congressional careers."

The debate did not follow party lines as both Republicans and Democrats spoke for and against the bill.

Representatives speaking in opposition to granting China PNTR focused on:

• Potential loss of America jobs to a low-wage workforce in China
• Possible increase of American trade deficit
• Possible blockade or invasion of Taiwan by the People's Republic of China
• Continued failure of the Chinese government to enact meaningful human rights reforms
• Possible security threats to the U.S. posed by China

Representatives speaking in favor of granting China PNTR focused on:

• Continued stimulation of American economy from expanding markets in China
• Potential expanded market for the American agricultural products
• Potential for improve working conditions and pay for Chinese workers
• Opening Western-style economy in China could force human rights reform in China

The bill as written includes provisions to:

• establish a human-rights commission to monitor human rights and trade conduct in China; 
• protect U.S. industries against sudden "surges" in the importation of Chinese products; and 
• expand monetary support for Radio Free Asia and the Voice of America.

Yesterday, the House approved by a vote of 404-8, and amendment to the Intelligence Authorization Act for FY 2001 bill offered by Rep. James Traficant (D-OH), requiring the CIA to inform Congress of any security dangers to the U.S. that might come from extending PNTR status to the People's Republic of China.

Who's in support of free trade with China?
Free trade with China is supported by the Clinton Administration, corporate America and agricultural interests. They feel free trade will open up a huge new market for American goods,  result in improved conditions for Chinese workers and encourage the Beijing government to enact human rights reform.

Who's opposed to free trade with China?
In opposition are organized labor along with human-rights and religious groups. Opponents fear cheap labor in China will encourage U.S. manufacturers to move factories to China while reward the totalitarian Beijing government, and possibly lead to the invasion or embargo of Taiwan by China.

Free trade with China is not yet a done-deal. The bill must now be debated and voted on by the Senate which will not consider the bill until after its Memorial Day break.

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Reference Links

Policy.com - The China Trade Vote
Intellectual Capital columnists consider the trade bill form all sides and opinions.

Clinton Softens Push for China Trade Bill
Washington Post, May 21, 2000: "With his hard-fought goal of granting permanent normal trading status to China nearly within reach, President Clinton yesterday zeroed in on wooing a dozen undecided House members." The House vote looks close.

Working Families Turn Up the Heat in Districts Across the Country
AFL-CIO press release on the efforts of organized labor to defeat the China trade bill.

After the China Trade Bill - What's at Stake?
The real story for Labor, and the Economy overall, will come as the application of the agreement unfolds. With retooling and new trade relationships China could be in the right place at the right time with a new challenge to U.S. industries. From Labor Issues Guide David Low.

China Opposes PNTR Conditions
Permanent Normal Trade Relations with China would require the creation of a commission responsible for monitoring human rights conditions in China. China doesn't like that. From Kevin Reid, About.com Human Rights Guide.

China and Free-Trade Guilt: An Editorial
If liberalized trade with China is good for both countries, then why does it make me feel so lousy? A look at human rights, dictatorships, a new flick, and free trade. From US Politics Guide John Aravosis.

China - Down to the Wire
After weeks of furious debate, a historic bill to grant China permanent normal trade relations is entering the do-or-die stage. US News Guide Clare Saliba provides a roundup of some of the best resources and coverage of the issue that the Net has to offer.

China Trade Pact - Agriculture
The effects of the trade bill on  ag-industry. From Agricultural Guide Kathy Gill.

China Poised to Join World Trade
Labor Issues Guide David Low's article provides key background and resources to understand the issues behind this historic debate and vote in Congress. (Follow-up ongoing coverage)

Union Demonstrations in Washington
During the week of April 13, 2000, over 15,000 protestors opposed to the China trade bill marched in Washington. Labor Issues Guide David Low covered the event and sorts out the reasons behind it.

Bridging the Gap on PNTR
About.com guide to Global Business Paul Bishop examines who will have to give what to reach an agreement on trade with China.

China and The United States
Related articles and opinion from around the world. From World Current Events Guide Keith Porter.

Prince Charles says 'No' to Noodles with Jiang
"And rumours that Charles, Prince of Wales boycotted the Chinese President's dinner invitation appear to be true." Royalty guide Stuart MacWatt reports on a royal snub of China president Jiang Zemin.

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