The New York Times

Wednesday, April 19, 2000

A Clear Choice on China Trade

By permanently awarding China the normal trading status it has enjoyed for two decades, Congress can advance America's economic interests without diluting its support for human rights on the mainland or the defense of democracy on Taiwan. Yet while Senate passage seems assured, the House is wavering as both liberal Democrats and conservative Republicans withhold support. Both groups should reconsider their opposition.

Passing the trade bill, which is scheduled for a vote in May, would lock in the market-opening concessions by China. These include easier access for foreign telecommunications companies and a reduction of state controls over the economy, steps that would expand the sale of American goods in China. Over time, lower trade barriers could loosen constraints on information and political debate. Without the trade deal, American businesses would be at a disadvantage in the China market.

Some Democrats, including the House minority leader, Richard Gephardt, argue that granting permanent trade rights to China would sacrifice the leverage now available to Congress through its annual votes on China's trade status. But those votes have become empty rituals, with China's trading rights invariably renewed. Pressure on trade is an inappropriate way to seek human rights reforms in China, since trade restrictions insulate China from progressive outside influences.

Representative Sander Levin, a Michigan Democrat, has proposed steps that would couple permanent trade status with new tools for monitoring and pressing China on human rights and fulfillment of its trade commitments. If warranted, Congress could also consider applying penalties allowed by World Trade Organization rules. This approach would create more effective American pressure on these issues than the annual trade status reviews.

Most House Republicans support the trade bill. But some have held back to protest Chinese belligerence toward Taiwan. China's threatening tone before last month's Taiwanese presidential election was troubling, but Beijing's rhetoric has lately been more restrained. Washington should continue trying to calm the tensions, not inflame them with the sale of sophisticated weapons to Taiwan.

The Clinton administration struck the right balance in its newly announced package of arms sales to Taiwan. This includes a variety of upgraded missiles and radars but rightly omits the four destroyers with advanced Aegis antimissile technology that had been requested by Taiwan.

Opening China's markets advances American, Chinese and Taiwanese interests. Other matters like the preservation of democracy in Taiwan and the expansion of liberty in China are equally important American objectives. They are best pursued by disentangling them from trade issues.