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Foreign Policy Research Institute
A Catalyst for Ideas

Mixed Verdict on China

by Harvey Sicherman

26 May 2000

This essay was first published by ChinaOnline on May 25, 2000. Copyright ChinaOnline (www.chinaonline.com).

Harvey Sicherman, Ph.D., is President of the Foreign Policy Research Institute and a former aide to three U.S. secretaries of state. He is co-editor, with Murray Weidenbaum, of "The Chinese Economy: A New Scenario" (FPRI Report, 1999) and co-author, with Alexander M. Haig, Jr., of "New Directions in U.S.-China Relations" (FPRI Report, 1997).

Reprinted with permission from FPRI, 1528 Walnut Street, Suite 610, Philadelphia, PA 19102-3684. For membership information, contact Alan Luxenberg at 215- 732-3774, ext. 105 or fpri@fpri.org

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Mixed Verdict on China

by Harvey Sicherman

The 237-197 vote in the U.S. House of Representatives in favor of permanent normal trade status (PNTR) for China was about many things, trade itself sometimes the least of it. In the end, the majority decided to ratify a twenty-year-old American approach that equates more trade with a more open and prosperous PRC hopefully bound for a democratic future. But even the staunchest advocates of this policy are uneasy about it, and the fissures evident in the vote itself show that the issue is far from settled.

Much of the drama was provided unintentionally by President Clinton's conduct of relations with Beijing. Having begun his term seven years ago by exalting the economic dimensions of foreign policy to the highest level, he now concludes it the same way. In between, however, Clinton linked trade with human rights, then delinked it; proclaimed "strategic partnership" with Beijing, then nearly came to war in the Taiwan Strait; and eagerly sought to bring the PRC into the World Trade Organization only to refuse China's best offer a year ago. A man more skilled at managing crises, many of his own making, than setting strategy, Clinton's touch was visible from start to finish.

The run-up to the PNTR was a good illustration. By now the story is well known of how Zhu Rongji brought the President an unexpectedly good WTO deal in April 1999, confident of Washington's signals that the market opening measures would be accepted for the Chinese concessions they were. But Clinton had just come off the impeachment crisis, heavily indebted to the Congressional Democrats; he was also waging war in Kosovo. Moreover, as a President adept at stealing the Republicans' issues, he was acutely aware of his own party's opposition to free trade deals. (In 1994, he had had to rely on Republican votes to pass NAFTA.) So on this occasion, the President judged that the time was unripe for a struggle. An astonished Zhu Rongji then publicly lobbied against him and in a few days, Clinton reversed himself, but not in time to rescue the deal. Then came delay, followed by the Chinese Embassy bombing, to be succeeded by yet more negotiation.

All of this gave the opposition, especially among American labor unions, lots of time to organize. What appeared bad timing to the White House in spring 1999 became disastrous timing in spring 2000 with the onset of presidential politicking. Vice-President Gore lost his enthusiasm for PNTR when he needed AFL-CIO support to defeat an unexpected challenge from Senator Bill Bradley in the party primaries. Then, at Seattle, the President himself rattled his colleagues when he sympathized visibly with the demonstrators against the WTO. The Republicans could indulge this only so far and their leaders signalled that they would not carry the vote unless Clinton recruited more of his party to the cause. All of this encouraged China's critics.

The Democrats, already divided by free trade, were even more conflicted on China policy. Human rightists, environmentalists, and unionists, each a significant Democratic constituency, all see China as the enemy. Some Republicans also fear China. But the GOP had less of a problem not only because of their business support, but because the "opening to China" bears a Republican patent.

Last, and far from least, one lobby influential with both sides wanted China in the WTO. This was Taiwan. And for once, the Taiwanese and their opponents in Beijing were able to avoid spitting in the soup. It did not start out that way. The late summer of 1999 was marked by high tension after ROC President Lee Teng-hui enunciated a "two-state" doctrine that challenged the hoary One-China theology. Then Beijing warned the Taiwanese voters not to elect the pro- independence DPP candidate as their next president. But they did; and the U.S. Congress riposted the Chinese threats with an enhanced arms package, which Clinton promised to veto. These darkening clouds were dispelled when Taiwan's new President, Chen Shui-bian, proved a capable theologian. His May 20th inaugural speech gave enough to reassure Washington and Beijing that he would not create a crisis over One China.

The Republican president contender, George W. Bush, also did his part. His major foreign policy speech in November 1999 described China as a "competitor"; more recently he has explained that competitor did not necessarily mean adversary. By endorsing the bill Bush also claimed the mantle of the "opening to China" worn by every Republican president since Nixon.

All of the strings were eventually pulled. Gore announced his unqualified support of PNTR on April 30 buried inside a general foreign policy speech. The President also thoroughly plied the fence-sitters, using the usual blandishments; after all, this was going to be his legacy. (Clinton delivered 73 Democrats, the number required by the GOP leadership.) The Republicans mostly rejected the arguments of would-be new Cold Warriors. And both Taipei and Beijing proved they could be pragmatic in the common interest. These were the very elements that had been missing, in whole or in part, through much of the previous seven difficult years.

The House debate itself, while intense, showed that each side's main arguments had serious flaws. Those in favor had a good case when they stuck to details; after all, PNTR lays the burden for opening new markets on China. It was harder to trace the connection between trade and democracy because China's political evolution is an erratic zig-zag, not a straight line.

Those against PNTR were equally unable to show that twenty years of annual votes on China's trading status made a convincing piece of leverage. Neither Tiananmen Square (1989) nor the Strait crisis of 1996 lost China its position. It was even more difficult to persuade Congress that the American economy, at full throttle, would lose from the opportunity to sell more to China.

Finally, some Representatives relished the annual opportunity to roast China. For them, a special commission was created. This small forum won't be the same as the House Chamber; but it will have to do.

Yesterday's triumph, however, is no guarantee of tomorrow's success. The verdict on China policy continues to be mixed. The vote proved that a President could still assemble a bipartisan consensus but the "consensus," unlike the Cold War era, needs enormous tending and can never be taken for granted. When all is said and done, the intensely technical PNTR cannot by itself promise to lubricate the major points of friction between the U.S. and the PRC: it may, or may not, lead to a China more respectful of human rights; it may, or may not, be a precursor to a less stressful cross- strait relationship; it may, or may not, improve the lopsided imbalance of trade between the U.S. and China. PNTR (and WTO membership) is essentially a Chinese promissory note to abide by rules allowing a greater foreign role in its economy, a big step forward in China's dramatic reengagement with the world, largely under U.S. auspices. Those who voted yes did so without illusions; those who voted no have not given up the fight; and a very rocky road may lie ahead. But for now, those hopeful about China outnumber their opponents in Congress.

 

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Reprinted with permission from FPRI, 1528 Walnut Street, Suite 610, Philadelphia, PA 19102-3684. For membership information, contact Alan Luxenberg at 215- 732-3774, ext. 105 or fpri@fpri.org