By Stanley Holmes, The Seattle Times
Knight-Ridder/Tribune Business News
Apr. 16, 1996--For U.S. exporters such as The Boeing Co., China remains the world's most alluring market.
But for human-rights supporters, China is a nation that tramples free speech and crushes democratic reforms.
Every year, human-rights abuses and economic interests dominate the debate over whether the U.S. government should grant trading privileges to China.
But this year, with the stakes so high, supporters of China will add a new argument to the debate: If Congress or President Clinton fail to renew most-favored-nation (MFN) trading status for China, U.S. security could be at risk.
``MFN is no longer a human-rights issue. It's not an economic issue. It has now become a security issue for the U.S.,'' said David Lampton, president of the National Committee on U.S.-China Relations. He outlined this new strategy yesterday before members of the Washington State China Relations Council.
``We've framed the MFN debate as an economics issue vs. human rights,'' he said. ``We tried to attack that by saying to pursue economic welfare in China is also to pursue human rights. I believe that.
``But that isn't the decisive argument. The point is this relationship will be undermined as a strategic value to the U.S., and that has been largely unrecognized.''
Lampton's argument is one of many new strategies now emerging among the pro-China lobby. His organization is one of the oldest and most prestigious in the country. It also receives roughly one-third of its funding from corporate interests.
The pro-China lobby -- mostly financed by U.S. business interests -- plans to mount a vigorous fight to persuade Clinton and Congress to grant MFN status to China.
The U.S. business community is concerned that the recent tensions between China and Taiwan, China's violation of nuclear-proliferation and trade treaties, and escalating human-rights abuses will pressure Congress to impose sanctions on China.
Clinton has until June 3 to decide on China's MFN status. Congress has 60 days to support or reject that decision. The U.S. government grants most trading partners MFN status, which lowers tariffs on imported goods. If China loses MFN status, those tariffs would soar, and China likely would retaliate by raising tariffs on U.S. products.
Boeing officials fear that a significant share of the Chinese aircraft market -- valued at $118 billion over 20 years -- is at stake. They point to China's decision last week to buy 30 Airbus aircraft for $1.5 billion as a warning that China may go elsewhere if trade relations remain frayed.
How the U.S. government handles MFN will affect all of Asia, Lampton said. It will determine the strength of the U.S.-Japan security relationship, which has brought decades of relative stability to Asia. The security of Taiwan would be jeopardized, North Korea could create more mischief, and China could stymie U.S. foreign policy at the United Nations.
The rest of Asia will not follow the U.S. if it continues to make unilateral demands on China, he said. Most of Asia supports a multilateral strategy to handle the world's most populous nation and is not nearly as concerned about human rights.
``I just think we're not dealing with the world as it exists,'' Lampton said. ``This continual use of the threat of MFN is destroying the credibility of the U.S government's promises in the region.''
