Saturday, June 13, 1998

Realistic China policy

Although it is unlikely to do so, Congress could go a long way toward removing an unnecessary irritant in U.S.-China relations by giving China permanent Most Favored Nation trade status.

Most Favored Nation is a misnomer; it only means China will be treated like all other countries in trade and tariff matters. Only a handful of pariah states are denied MFN.

In an action going back to revulsion over the 1989 Tiananmen Square massacre, Congress decreed China's MFN status be renewed annually. The renewal has become an occasion of China bashing, some of it excessive, some of it justified. The Chinese should know the United States is not a monolith, that Congress has numerous influential factions and that some of those factions deeply object to the way Beijing treats its people.

Still, the policy of diplomatic and economic engagement with the Chinese arguably has worked. Although authoritarian China is far from a free-market democracy, economic reforms have moved it farther in that direction than anyone dared hope nine years ago. The ruling Communist Party, which seems to rule less each day, is losing its grip on the country.

It is important that the United States be in a position to influence the nature of the successor political system. China is also a key player in whether there will be an Indian-Pakistani nuclear arms race.

President Clinton will have enough to talk about with China's leaders when he journeys to Beijing later this month. Most Favored Nation is a needless distraction from far more serious issues.