Statement of Administration Policy: H.J. Res. 182 - Disapproving the Extension of MFN to China

(House)
(Rohrabacher (R) CA and 36 cosponsors)

The Administration strongly opposes H J.Res. 182, which would deny most-favored-nation (MFN) trade status for China. Renewing MFN does not give China a special deal. It merely gives it normal trade status.

The Administration favors renewal of MFN to China because it advances critical U.S. interests. Maintaining our overall relationship with China will enable the United States to engage China in the months and years ahead, to enhance areas of cooperation and to pursue American interests where we differ. That engagement can help determine whether an increasingly strong, and prosperous China becomes a destabilizing threat or a constructive force in Asia and in the world.

Engagement has resulted in significant progress in key areas, from a commitment not to export ground-to-ground Missile Technology Control Regime (MTCR)-class missiles, to halting North Korea's nuclear program, and preventing destabilization of the Korean peninsula.

Renewal of MFN best advances the substantial U.S. interests that are at stake. Revoking MFN would raise average tariffs on Chinese imports from 5 percent to 45 percent. It would effectively sever our economic relationship with China, undermining our capacity to influence China in a broad range of areas, including human rights, nonproliferation, trade, Taiwan relations, and others. It would reverse three decades of bipartisan China policy and would seriously weaken our influence not only in China, but throughout Asia.

H.J.Res. 182 would also undermine America's economic interests. U.S. exports to China support over 170,000 American jobs. Chinese retaliation would imperil or eliminate these jobs, exclude American companies and workers from future business in one of the world's most dynamic markets, and give an open field to U.S. competitors.

Engagement with China does not mean acquiescence in Chinese policies or practices we oppose. The President has demonstrated that he is prepared to use many tools at his disposal to promote America's goals. The Administration's willingness to use sanctions succeeded in securing Chinese enforcement of the U.S.-China intellectual property rights agreement, further opening China's market to U.S. exports. On human rights, the United States will continue to stand with those who are working to promote freedom and human rights in China, as we did this year in cosponsoring a resolution in the UN Human Rights Commission condemning China's human rights record. The United States is the only country that has not lifted sanctions that were imposed following the 1989 Tiananmen Square incident. The Administration took resolute action this spring to defend U.S. interests regarding Taiwan. The firm U.S. stance on nonproliferation and international security issues has produced significant new Chinese commitments to abide by established international rules.

Much more needs to be accomplished, but the withdrawal of China's MFN status would.prevent further progress on these and other important issues. For this reason, the Administration urges Congress to reject H.J.Res. 182.