Statement of Administration Policy: H.J. Res. 208 - Disapproving the Extension of MFN-to China

(House)
(Solomon (R) New York and 6 others)

The Administration strongly opposes H.J. Res. 208, which seeks to disapprove the renewal of most-favored-nation (MFN) trade status for China in 1993.

On May 28, the Administration announced a new U.S. policy toward China designed to promote change in Chinese practices on human rights, proliferation of weapons of mass destruction, and trade. This policy was crafted following extensive consultations with Congress and reflects a firm and renewed consensus on the core issues of concern to the United States

Recognizing the importance of American ties to China, the new policy more effectively utilizes U.S. leverage. Through an Executive order, the President has set forth human rights conditions on next year's extension of China's MFN status that are achievable and provide a real incentive for progress.

The Administration is also committed to act, under existing laws, to ensure China abides by international standards on trade and nonproliferation. If necessary, the United States will not hesitate to take strong steps.

For the first time since the tragedy at Tiananmen Square, American policy toward China speaks with one voice, with the support of the Administration, the Congress and the American people. Our balanced approach recognizes the importance of China to the United States, but firmly underscores our demand that China adopt international standards of responsible conduct on human rights, nonproliferation, and trade.

Our new approach stands to advance our national interests, which include China's continued progress toward democracy and promarket reform. It supports progressive forces in China, the continued stability and prosperity of Hong Kong and maintains our links to one of the world's fastest growing economies.

The Administration's decision to extend MFN status for one year, while working with China to achieve improvement is a firm, balanced and effective approach.

Pay-As-You-Go Scoring

H.J. Res. 208 would increase receipts; therefore, it is subject to the pay-as-you-go requirement of the Omnibus Budget Reconciliation Act (OBRA) of 1990. OMB's preliminary scoring estimate of this bill is an increase in revenue of $615 million for FY 1994. Final scoring of this legislation may deviate from this estimate. If H.J. Res. 208 were enacted, final OMB scoring estimates would be published within 5 days of enactment, as required by OBRA. The cumulative effects of all enacted legislation on direct spending and receipts will be reported at the end of the Congressional session, as required by OBRA.