Clinton looks to Republicans in crucial vote on China trade

Future relations between the US and China depend on a crucial vote in Congress tomorrow on whether to lift trade restrictions…

Future relations between the US and China depend on a crucial vote in Congress tomorrow on whether to lift trade restrictions between them.

President Clinton is strongly backing a resolution which would restore Permanent Normal Trade Relations (PNTR) between the two countries but he is opposed by many in his own Democratic Party, the labour unions, human rights groups and churches.

The President cancelled a planned TV address on Sunday urging the passing of the Bill when he was advised that it could have a negative effect on members of Congress who are still undecided.

Big American corporations favour the normalisation of trade relations with China as they hope to increase exports and gain access for their subsidiary companies.

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But the labour unions are strongly opposing the measure, which they say would be a betrayal of Chinese human rights dissidents and also endanger jobs of American workers as US companies transferred manufacturing plants to China to benefit from cheap or even slave labour. Political refugees from China last week demonstrated on Capitol Hill to urge legislators to oppose the measure.

The US and China have already signed a trade agreement which will allow China to join the World Trade Organisation (WTO) but it is dependent on Congress voting to end its annual scrutiny of trade terms with China and to put them on a permanent basis.

The Senate is expected to pass the measure but the 435 members of the House of Representatives are deeply divided with most of the Democrats opposed to it as they come under heavy labour union pressure in an election year.

For President Clinton, the normalisation of trade relations is a vital part of his China policy of "constructive engagement" with the largest country in the world which is also a nuclear power. He argues that bringing China into the WTO will help to liberalise the Communist regime by opening it up to Western investment.

Last week he argued that "when over 100 million people in China can get on the Net, it will be impossible to maintain a closed political and economic society".

He also points out that increased access to the huge Chinese market by US exporters will help reduce the enormous US trade deficit with China, now running at about $70 billion a year.

Opponents recall that Mr Clinton campaigned for the presidency in 1992 by denouncing President Bush as "soft" on China and pledging to use trade sanctions against human rights violations by Beijing. But Mr Clinton abandoned that hardline approach after being elected and now regards a stable security and economic relationship with China as a top foreign policy goal.

It is ironic that in an election year President Clinton is depending on his Republican opponents to get his China policy through Congress while it is being strongly opposed by the labour unions, which are the traditional ally of the Democrats. Even the Democratic leader in the House, Mr Dick Gephardt, is opposing the measure.

Vice-President Al Gore who is depending on labour support in his presidential bid is in an uncomfortable position over China. He has told the unions that he wants any trade agreements to have protections for American workers against cheap foreign labour and human rights abuses but at the same time he is expected to support the administration policy.

Political observers believe that the trade normalisation measure will narrowly pass because of an accompanying proposal to set up a commission to monitor human rights in China as well as trade.