WASHINGTON, Apr 6, 2001 -- (Reuters) Ratcheting up pressure on China to release a U.S. spy plane and its crew,
corporate America issued a blunt warning to Beijing on Thursday that commercial ties were threatened if the standoff
dragged on.
The stakes for the business community are enormous as the U.S. Congress weighs its response to the crisis, including
legislation that would withdraw China's commercial privileges in the U.S. market by rescinding so-called permanent normal
trade relations (PNTR) status.
"We want the Chinese government to understand that failure to resolve this matter in the immediate future could and would
likely damage the current and potential economic exchange between the companies in our two nations," said Thomas
Donohue, president of the U.S. Chamber of Commerce, the world's largest business federation.
Until now corporate lobbyists had sought to stay out of the political fray, working behind the scenes to calm tempers on
Capitol Hill, hopeful the crisis would pass with little damage to trade with the world's most populous nation.
"We're confident the two nations are going to come to an agreement to resolve this issue so we can move on," said a Boeing
Co. official who asked not to be named. The aerospace giant lobbied hard last year for passage of PNTR.
President George W. Bush also expressed hope the crisis would not spill into the trade arena, reiterating his support for
China's membership in the World Trade Organization (WTO).
But the Chamber of Commerce, which represents more than 3 million businesses, said the crisis threatened to sap support in
Congress for normal trade relations and undermine Beijing's bid to join the global trading system. "Failure to free our
personnel quickly will clearly lead to real difficulties between our countries, make a vote on China NTR this year very
difficult and our support in other world organizations almost impossible," Donohue said.
Trade between the United States and China has grown rapidly in recent years. Last year alone, the United States imported
$100 billion of Chinese goods and services, while China imported more than $16 billion from the United States. Approved by
Congress last year after an intense lobbying campaign by business, PNTR was meant to end the 20-year-old annual ritual of
reviewing China's trade status and to guarantee Chinese goods the same low-tariff access to the U.S. market as products
from nearly every other nation.
In exchange for the benefits, China agreed to open a wide range of markets from agriculture to telecommunications under
terms of a landmark agreement. Passage of PNTR was a huge victory for U.S. companies like Boeing and Motorola Inc. ,
promising them unprecedented access to a market of 1.3 billion Chinese.
But PNTR was contingent on Beijing becoming a member of the Geneva-based WTO, and those negotiations have dragged
on longer than expected. Because of the delay, Bush will be forced in June under U.S. law to seek a one-year extension of
Beijing's trade benefits, setting the stage for another contentious congressional review and vote.
Kicking off the fight, China's critics introduced legislation on Wednesday that would revoke PNTR to protest Beijing's
refusal to return the surveillance plane and its 24 crew members stranded on a southern Chinese island after a collision with
a Chinese fighter. The legislation has won the backing of more than 30 lawmakers in the House.
Outraged by the standoff over the spy plane, even outspoken supporters of PNTR said they were beginning to have second
thoughts. House Republican leader Representative Dick Armey of Texas said his support for PNTR was "on the edge."
Senate Finance Committee Chairman Sen. Chuck Grassley, an Iowa Republican, said Beijing risked alienating its allies on
Capitol Hill. "I consider myself a friend to China. But I'm very frustrated," Grassley said.
But key Republicans and Democrats doubted the rhetoric would translate into legislative action limiting trade with China
given the lobbying clout of big business and the risk of sparking a bigger confrontation.
"I didn't totally agree with the policy of China PNTR, but we made a decision as a country," said House Democratic leader
Representative Dick Gephardt, who opposed PNTR in 2000. "If we are asking them to live up to their obligations and
promises, we ought to live up to ours." |
