25 June 1997
The Wall Street Journal Interactive Edition
By David Rogers House Votes to Back Renewal Of China's MFN Trade Status
WASHINGTON -- The House voted to continue normal trade relations with China despite demands from Christian conservatives for tougher U.S. policy toward Beijing.
The 259-173 roll call was a solid victory for business and the White House but exposed serious divisions in both political parties over the emotional issue. Opponents gained 32 votes since a parallel vote a year ago and still pose a threat to business, which could face more targeted efforts to limit U.S.-backed financing important to Beijing.
'The Agony Doesn't Stop Today'
"We always knew we were swimming upstream," said Gary Bauer, a conservative activist who helped mobilize the anti-China forces. "I've warned members, if this has been agonizing, the agony doesn't stop today."
President Clinton praised the bipartisan support for continuing "most-favored-nation" status, adding that the vote "makes clear that the right way to encourage further progress in China is not to cut China off, but draw China in."
President Clinton praised the bipartisan support for continuing trade relations, adding that the vote ''makes clear that the right way to encourage further progress in China is not to cut China off, but draw China in.''
Since 1980, China has enjoyed ''most-favored-nation'' trade status with the U.S., which is subject to annual review by the White House and Congress. Mr. Clinton announced last month that he wants continued most-favored-nation approval. To reverse the president, two-thirds of both houses of Congress must back a resolution of disapproval.
With Tuesday's vote, pro-most-favored-nation forces are assured that China's trade status will be renewed for another year, beginning July 3. But given the pressure from grass-roots conservatives, the GOP leadership has already promised opponents a second round, when lawmakers will consider more targeted sanctions against China and possible cuts in U.S. aid to the World Bank and other multilateral institutions that provide credit to Beijing.
"This is not and should not be the last word on the subject of the United States' relationship with Beijing," said House Majority Leader Richard Armey (R., Texas), who supported most-favored-nation renewal but left open the option of denying World Bank financing for China. "We will have another bill later in the year that will address our concerns about the way the Chinese government oppresses its own people."
Conflicts in GOP
Republicans split 147-79 in favor of most-favored-nation status, and the crosscurrents in the party regarding China are both political and personal. Mr. Bauer's own organization, the Family Research Council, has enjoyed major financial support from Richard DeVos Sr., co-founder of Amway Corp., which has expanded rapidly in China with 24,000 distributors and a small soap-making facility. The Christian Coalition, another most-favored-nation opponent, warned it would hold lawmakers accountable in next year's election. But International Family Entertainment Inc., part of the family empire of coalition founder Pat Robertson, has pursued media investments aimed at China's huge market.
While most attention has focused on the religious right, the China fight this year also reflected the emergence of young GOP opinion makers who hunger for more moral direction in foreign policy. Most come from a more pro-business mold than the party's populist Pat Buchanan wing, but the debate left many resentful of the power exhibited by major corporations defending their China trade.
"The corporate elite is totally out of sync with the American people," said Rep. Dana Rohrabacher (R., Calif.) a former speechwriter in the Reagan White House. "I have been slightly shocked by the crassness of their self-interest," said William Kristol, a former aide to Dan Quayle and now editor of the conservative Weekly Standard. "This is how Buchanan became Buchanan."
Democrats broke 112-93 in support of MFN, and with labor opposing the administration and China trade, the party faces its own conflicts over the issue. Most striking was how Tuesday's debate became a vehicle for House Democrats to vent their larger frustration with the White House. In mocking tones, Rep. Fortney Stark (D., Calif.) recited allegations that Chinese business interests had funneled large illegal donations into Mr. Clinton's re-election campaign last year. And House Minority Leader Richard Gephardt (D., Mo.) was embraced by his colleagues after an emotional address likening the China debate to the mid-1980s struggle to impose sanctions against white-controlled South Africa.
"Trade issues are human-rights issues," Mr. Gephardt said. "If we don't stand for freedom in China, who will?"
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