10 May 2000
Transcript: Lawmakers Clash on China Trade Relations
(Armey touts trade deal, Brown rejects it) (1320) House Majority Leader Dick Armey (Republican of Texas) is a firm supporter of granting Permanent Normal Trade Relations to China. Representative Sherrod Brown (Democrat of Ohio) is just as firmly opposed to legislation that would remove the annual review of China's trade status by the U.S. Congress. The two lawmakers argued the merits of permanent NTR status for China in the House of Representatives May 9, while many of their colleagues in and around the Capitol were advocating passionately for and against permanent NTR for China. A vote is scheduled later this month. "I urge my colleagues to approve PNTR," Armey said, "a vote for permanent normal trade relations is a vote for the new economy." Brown, in turn, criticized American business leaders who "come to our offices and implore us to support permanent trade advantages for the People's Republic of China and its communist regime." What they don't mention, Brown said, and what is the most important to them, "is that China is a nation of 1.2 billion potential workers, workers who are paid 30 cents an hour, workers who do not talk back, workers who cannot form unions, workers who do not benefit from any worker safety legislation or environmental laws or food safety standards." Brown called the Beijing regime "a communist government that flies in the face of all human rights, that cares nothing about its workers, that exploits child labor, slave labor, that persecutes Christians, allows and encourages forced abortion." "Shame on us in this Congress if we give Permanent Most Favored Nation status to that country," Brown said. Following is a transcript of the lawmakers' remarks from the Congressional Record: (begin transcript) PERMANENT NORMAL TRADE RELATIONS WITH CHINA (House of Representatives - May 09, 2000) Mr. ARMEY. Mr. Speaker, the coming vote to expand our trade with China is a vote for the new economy. It is a vote that will clearly show whether the Members in this Congress are in favor of advancing America's high-tech economy or whether they want to flee from that future into the failed protectionist policies of the past. Mr. Speaker, China is a key market for America's high-tech industry. It is now the second largest information technology market in Asia, second only to Japan. It is an information technology market that is growing at 20 to 40 percent annually. Next year, China will be the third largest semiconductor market in the world, and by 2010 it will be the number two largest. This is a boon for America and for the Chinese people. As information technology spreads in China, it will help the Chinese learn about their government and, more importantly, the world beyond. It will encourage democratic reform in China and help make China a more free and open society. Mr. Speaker, our high-tech industry got everything it needed in the trade agreement with China. We must not throw that away. Mr. Speaker, I urge my colleagues to approve PNTR. A vote for permanent normal trade relations is a vote for the new economy. Mr. BROWN of Ohio. Mr. Speaker, it is an interesting time to be in our Nation's capital. There are more chief executive officers, more CEOs, of the country's largest corporations roaming the halls this week and next week than perhaps anytime in recent American political history. The reason? The United States Congress is considering giving Permanent Most Favored Nation status trading privileges to the People's Republic of China. When it comes to competing for U.S. trade and investment dollars, democratic countries in the developing world are losing ground to more authoritarian countries in the developing world, like China. The CEOs that come to our offices and implore us to support permanent trade advantages for the People's Republic of China and its communist regime tell us that China is a lucrative market, with 1.2 billion potential consumers. What they do not tell us, but what is the most important to them, is that China is a nation of 1.2 billion potential workers, workers who are paid 30 cents an hour, workers who do not talk back, workers who cannot form unions, workers who do not benefit from any worker safety legislation or environmental laws or food safety standards. In the post-Cold War decade, the share of developing country exports to the U.S. for democratic nations fell from 53 percent to 34 percent, a decrease of 18 percentage points. American CEOs prefer doing business in totalitarian countries like China because western investors enjoy the benefits of child labor and slave labor and 25-cent-an-hour wages. In manufacturing goods, developing democracies' share of developing country exports fell 21 percentage points, from 56 to 35 percent. American CEOs prefer doing business in countries like China, authoritarian countries like China, where workers can never speak up, where human rights are dismissed, where worker rights are simply nonexistent. Nations that do not support democracy have gained five percent of U.S. investment over the last 10 years. China was responsible for 95 percent of foreign investment gained for non-democratic countries. American CEOs prefer doing business in authoritarian nations like China with an obedient, docile workforce that has no ability to organize unions. Western corporations have shown they want to invest in countries that have below poverty wages, poor environmental standards, no opportunities for unions. They love to invest in authoritarian countries that suppress labor rights, allow slave labor, allow child labor, pay 25 cents an hour. The United States talks a good game about democratic ideals worldwide through all of our trade programs. But, as developing nations make progress toward democracy, something we say we applaud in this institution, the American business community penalizes those countries that are becoming more democratic by pulling its trade and investment in favor of totalitarian countries like China. CEOs tell us that engaging with China will bring more democracy to that country and more freedom and more enterprise and all of that. But who are the real decision-makers in China? Who gains from the system the way it is in China? Who is in charge in the People's Republic of China? First, the Chinese Communist Party makes most decisions in that country; second, the People's Liberation Army, which owns many of the export businesses in China, the big manufacturing concerns; and third, the western investors are very influential that have businesses set up in China. Which of those groups wants to see change? Which of those groups wants China to democratize? Which of those groups wants workers in that country to have more rights, to have more ability to speak up, to be able to form unions and bargain collectively and bring their wages up? The Chinese Communist Party? I do not think so. The People's Liberation Army? I do not think so. Western investors in China? I do not think so. Those three groups, the Chinese Communist Party, the People's Liberation Army, western investors, lump them all together and they are all aiming for the same thing. They like doing business. They like the synergism that results when the three of them work together. They like the way things are in the People's Republic of China. That is why we should vote `no' on Permanent Most Favored Nation status for China. Shame on us, shame on this Congress if we give Permanent Most Favored Nation status trading privileges to the People's Republic of China, a communist government that flies in the face of all human rights, that cares nothing about its workers, that exploits child labor, slave labor, that persecutes Christians, allows and encourages forced abortion. Shame on us in this Congress if we give Permanent Most Favored Nation status to that country. (end transcript) (Distributed by the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)
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