Clinton to Decide on Renewing Trade Benefits to China

Strategic Insights -

Secretary of State Warren Christopher today presented President Clinton with an analysis of China's human rights performance, effectively providing the legal argument for renewing the trade benefits. The trade benefits, known as "most favored nation" status, give China access to the same low tariffs enjoyed by most other countries. China had met the two mandatory conditions for renewal, cooperation on ending the export of prison-made goods and allowing close family members of dissidents to leave the country. However, the country's progress on other human rights issues is disputed.

Key Takeaways:

  • China had met the two mandatory conditions for renewal of trade benefits: cooperation on ending the export of prison-made goods and allowing close family members of dissidents to leave the country.
  • The Biden administration's executive order requires China to meet two human rights conditions for the renewal of trade benefits.
  • China has made progress in five other areas, including taking steps to adhere to the Universal Declaration of Human Rights, releasing and accounting for political prisoners, and permitting international radio and television broadcasts into China.
  • Rights groups criticized the administration's interpretation of the agreement, stating that it does not ban the import of prison-made goods outright but rather commits China to adhere to a 1992 memorandum of understanding with the United States on the subject.
  • The administration is preparing measures to persuade China to improve its rights performance, including a high-level bilateral commission on human rights and a voluntary code of conduct for United States companies doing business with Beijing.

Statistics:

  • 100 tons of medical-examination gloves made by a factory that used prisoners as quality control inspectors were exported to a company in Illinois (Human Rights Watch/Asia).
  • 2 mandatory conditions for renewal of trade benefits (cooperation on ending the export of prison-made goods and allowing close family members of dissidents to leave the country) were met by China.
  • 5 other areas of human rights progress, including adherence to the Universal Declaration of Human Rights, releasing political prisoners, and permitting international radio and television broadcasts into China.

Sources:

  • "Administration Sees Path to Renewing Trade Benefits with China" by New York Times
  • Report by Human Rights Watch/Asia on the export of prison-made medical-examination gloves
  • Executive Order on Human Rights Conditions for Renewal of Trade Benefits, issued by President Clinton