Bidness as usual.
Powell: Bush to Renew China's Normal Trade Status
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WASHINGTON (Reuters) - President Bush (news - web sites) will notify Congress on Friday that he plans to renew normal trade relations with China for an additional year, Secretary of State Colin Powell (news - web sites) said.
With diplomatic relations still strained over Beijing's decision in April to hold crew members of a downed U.S. surveillance plane for 11 days, Powell said maintaining normal trade relations would help U.S. exporters while promoting change ``for the better'' in China.
``The president's decision is not an endorsement of China's policies, some of which clearly conflict with America's views and values,'' Powell said, writing in The Washington Post.
``Rather, we believe that extension of normal trade relations with China again this year is clearly in America's interest.''
Bush signaled his decision earlier this week to extend normal trade relations for an additional year in a speech that was well received by Chinese officials.
``We express our welcome,'' Foreign Ministry spokesman Zhu Bangzao said in response. ``This is a two-way reciprocal trade arrangement between two nations and absolutely not a favor granted by one country to another.''
Nonetheless, Bush decision's sets the stage for an emotional debate in the U.S. House of Representatives and possibly the Senate.
Last year, Congress approved granting China ``permanent normal trade relations'' (PNTR (news - web sites)) putting it on a par with most U.S. trading partners. But the deal hinged on Beijing's entry into the World Trade Organization (news - web sites).
Entry talks have dragged on and China is not expected to join the WTO until early next year, so Bush must now seek a one-year extension of China's trade privileges.
The downing of the U.S. Navy (news - web sites) spy plane over China -- and Beijing's decision to detain its crew -- have given critics in the House new ammunition to challenge the annual renewal of the trade arrangement.
Rep. Dana Rohrabacher (news - bio - voting record), a California Republican, plans to introduce a resolution to overturn Bush's decision when lawmakers return to Capitol Hill next week after a recess.
U.S. business groups, who are eager to see China enter the WTO and begin implementing commitments to open its market, plan a major lobbying effort to keep normal trade relations.
``I think it's a bad mistake to take it for granted,'' said Frank Vargo, vice president for international trade at the National Association of Manufacturers (news - web sites).
Once the resolution to overturn Bush's decision is introduced, Republican leaders have 60 days to bring the measure to the House floor for a vote.
That usually happens in late July, but ``we've heard nothing specific as to a date,'' said Robert Kapp, president of the U.S.-China Business Council.
However, there is some talk Republican leaders will push for an early vote to minimize the chance of another unexpected flare-up in U.S.-Sino relations that could further complicate the issue, congressional aides said.
Republican leaders also could pair the vote with a resolution urging the International Olympic Committee (news - web sites) (IOC) to deny Beijing's request to host the 2008 Games, aides said.
That measure cleared the House International Relations Committee on March 28 by a 27-8 vote and is co-sponsored by Texas Rep. Tom Delay (news - bio - voting record), the No. 3 ranking Republican in the House.
Since the IOC makes its decision in Moscow on July 13, the House must vote quickly on the measure if it is to have any influence on the outcome, congressional aides said.
Pairing the two issues would allow lawmakers to approve normal trade relations, but still express their concern about Beijing's human rights record by voting against China's bid to host the Games, the aides said.
Even without such a maneuver, Kapp said he was optimistic the House would approve normal trade relations given the 237-197 vote last year in favor of PNTR.
If the effort to overturn Bush's decision fails in the House, it is unlikely the Senate will take up the measure.
For opponents of normal trade relations to succeed, both the House and the Senate would have reject Bush's decision by a large enough margin to override a presidential veto.
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