Table Of ContentFUTURE OF UNITED STATES-CHINA POUCY
Y4.F 76/1 :C 44/27
Future of Unitei Stites-China Folic...
wi^AKINGS
dUiiNi'
BEFORE THE
SUBCOMMITTEES ON
ECONOMIC POLICY, TRADE AND ENVIRONMENT;
INTERNATIONAL INTERNATIONAL
SECURITY,
ORGANIZATIONS AND HUMAN RIGHTS; AND
ASL^ AND THE PACIFIC
OFTHE
COMMITTEE ON FOREIGN AFFAIRS
HOUSE OF REPRESENTATIVES
ONE HUNDRED THIRD CONGRESS
FIRST SESSION
MAY
20, 1993
Printed for the use of the Committee on Foreign Affairs
U.S. GOVERNMENT PRINTING OFFICE
71-343CC WASHINGTON : 1993
ForsalebytheU.S.GovernmentPrintingOffice
SuperintendentofDocuments,CongressionalSalesOffice,Washington,DC 20402
ISBN 0-16-043307-X
FUTURE OF UNITED STATES-CHINA POUCY
Y4.F76/1;C 44/27
future of United Stites-Ckina folic...
dUiiM HEARINGS
BEFORE THE
SUBCOMMITTEES ON
ECONOMIC POLICY, TRADE AND ENVIRONMENT;
INTERNATIONAL INTERNATIONAL
SECURITY,
ORGANIZATIONS AND HUMAN AND
RIGHTS;
ASIA AND THE PACIFIC
OPTHE
COMMITTEE ON FOREIGN AFFAIRS
HOUSE OF REPRESENTATIVES
ONE HUNDRED THIRD CONGRESS
FIRST SESSION
MAY
20, 1993
Printed for the use of the Committee on Foreign Affairs
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U.S. GOVERNMENT PRINTING OFFICE
71-343CC WASfflNGTON : 1993
ForsalebytheU.S.GovernmentPrintingOffice
SuperintendentofDocuments,CongressionalSalesOffice,Washington,DC 20402
ISBN 0-16-043307-X
COMMITTEE ON FOREIGN AFFAIRS
LEE H. HAMILTON, Indiana, Chairman
SAM GEJDENSON, Connecticut BENJAMIN A. OILMAN, New York
TOM LANTOS, California WILLIAM F. GOODLING, Pennsylvania
ROBERT G. TORRICELLI, New Jersey JAMES A. LEACH. Iowa
HOWARD L. HERMAN, California TOBY ROTH, Wisconsin
GARY L. ACKERMAN, New York OLYMPIA J. SNOWE, Maine
HARRY JOHNSTON, Florida HENRYJ. HYDE, Illinois
ELIOT L. ENGEL, New York DOUG BEREUTER, Nd)raska
ENI F.H. FALEOMAVAEGA, American CHRISTOPHER H. SMITH, New Jersey
Samoa DAN BURTON, Indiana
JAMES L. OBERSTAR, Minnesota JANMEYERS, Kansas
CHARLES E. SCHUMER, New York ELTON GALLEGLY, California
MATTHEW G. MARTINEZ. California ILEANA ROS-LEHTINEN. Florida
ROBERT A. BORSKI, Pennsylvania CASS BALLENGER, North Carohna
DONALD M. PAYNE, New Jersey DANA ROHRABACHER, California
ROBERT E. ANDREWS, New Jersey DAVID A. LEVY, New York
ROBERTMENENDEZ, New Jersey DONALD A. MANZULLO, Illinois
SHERROD BROWN, Ohio LINCOLN DIAZ-BALART, Florida
CYNTHIA A. MCKINNEY, Georgia EDWARD R. ROYCE, California
MARIA CANTWELL, Washington
ALCEE L. HASTINGS, Florida
ERIC FINGERHUT, Ohio
PETER DEUTSCH, Florida
ALBERT RUSSELL WYNN, Maryland
DON EDWARDS, California
FRANK MCCLOSKEY, Indiana
THOMAS C. SAWYER, Ohio
(Vacancy)
Mjchael H. Van DUSEN, ChiefofStaff
Richard J. Garon, Minority ChiefofStaff
Anne Grey, StaffAssociate
Jo Weber, StaffAssociate
Mickey Harmon, StaffAssociate
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Subcommittee on Economic Policy, Trade and Environment
SAM GEJDENSON, Connecticut, Chairman
JAMES L. OBERSTAR, Minnesota TOBY ROTH, Wisconsin
CYNTHIA A. McKINNEY, Georgia DONALD A. MANZULLO, Illinois
MARL\ CANTWELL, Washington DOUG BEREUTER, Nebraska
ERIC FINGERHUT, Ohio JAN MEYERS, Kansas
ALBERT RUSSELL WYNN, Maryland CASS BALLENGER, North Carolina
HARRYJOHNSTON, Florida DANA ROHRABACHER, California
ELIOT L. ENGEL, New York
CHARLES E. SCHUMER, New York
John Scheibel, StaffDirector
Edmund B. Rice, Republican ProfessionalStaffMember
Kathleen Bertelsen, Professional StaffMember
Donna LaTorre, ProfessionalStaffMember
Peter Yeo, Professional StaffMember
subcommntee on international security, international organization and
Human Rights
TOM LANTOS, California, Chairman
HOWARD L. BERMAN, California DOUG BEREUTER, Nebraska
GARY L. ACKERMAN, New York OLYMPL\ J. SNOWE, Maine
MATTHEW G. MARTINEZ, California CHRISTOPHER H. SMITH, New Jersey
FRANK MCCLOSKEY, Indiana DAN BURTON, Indiana
THOMAS C. SAWYER, Ohio
Robert King, StaffDirector
Michael ENNIS, Republican Professional StaffMember
Kenneth R. Timmerman, Professional StaffMember
Beth L. Poisson, Professional StaffMember
Maryanne Murray, Professional StaffMember
Subcommittee on Asia and the Pacific
GARY L. ACKERMAN, New York, Chairman
ENI F.H. FALEOMAVAEGA, American JAMES A. LEACH, Iowa
Samoa DANA ROHRABACHER, California
MATTHEW G. MARTINEZ, California EDWARD R. ROYCE, California
ROBERT G. TORRICELLI, New Jersey TOBY ROTH, Wisconsin
SHERROD BROWN, Ohio
ERIC FINGERHUT, Ohio
Russell J. Wilson, StaffDirector
James McCormick, Republican ProfessionalStaffMember
Robert M. Hathaway, Professional StaffMember
David S. Adams, Professional StaffMember
Lisa C. BERKSON, Professional StaffMember
(in)
CONTENTS
WITNESSES
Page
DonaldAnderson, president, UnitedStates-China Business Council 10
Phillip Fishman, Assistant Director, International Affairs Department, Amer-
icanFederation ofLaborand Congress ofIndustrial Organizations 13
Hongda HarryWu, executive director, LaogaiResearchFoundation 16
Hon. JamesA. LUley, formerAmbassadorto China 37
Liu Binyan, publisher, ChinaFocus 52
Robin Munro, research associate,Asia Watch 54
GaryMilhollin, director,Wisconsin Projecton NuclearArms Control 69
ThomasW. Robinson, president,AmericanAsianResearch Enterprises 72
APPENDIX
Prepared statements:
DonaldAnderson 97
PhillipFishman 101
JamesA. Lilley 106
Liu Binyan 113
RobinMunro 123
GaiyMilhollin 135
Prepared statement of Hon. Tom Lantos, including a chronology of Chinese
missiles sales, compiled by the staffofthe Subcommittee on International
Security, International Organizations and HumanRights 152
Statementsubmittedforthe recordbyTimothyV.McCarthy, SeniorResearch
Associate, Program forNonproliferationStudies 167
Bombs From Beijing, A Report on China's Nuclear and Missile Exports,
by GaryMilhollin and GerardWhite,May 1991 172
(V)
FUTURE OF UNITED STATES-CHINA POLICY
THURSDAY, MAY 20, 1993
House of Representatives,
Committee on Foreign Affairs,
Subcommittees on Economic Policy, Trade and Envi-
ronment; International Security, International
Organizations and Human Rights; and Asia and
THE
Pacific,
Washington, DC.
The subcommittees met, pursuant to call, at 9:30 a.m. in room
2172, Raybum House Office Building, Hon. Sam Grejdenson (chair-
man of the Subcommittee on Economic Policy, Trade and Environ-
ment) presiding.
Mr. Gejdenson. The subcommittees will come to order.
I am pleased to call to order today's joint subcommittees hearing
on the future ofU.S.-China relations.
Since the pro-democracy movement in China was cruelly crushed
4 years ago, the Subcommittee on Economic Policy, Trade and En-
vironment has held seven joint hearings on U.S.-China relations.
The subcommittee also helped craft the 1989 China sanctions pack-
age, which substantially scaled back our political, economic, and se-
curity relations with Beijing.
I also join with my colleagues year after year in supporting legis-
lation that places tough conditions on China's Most Favored Nation
status. I continue to believe there are no markets so immense that
we should set aside the values that hold us together as a nation.
Unfortunately, the previous administrations followed a line ofap-
MFN
peasement, repeatedly vetoing the conditions bill. As a result
of the deadlock on this issue between the White House and the
Congress in the past, America has not had a unified and coherent
China policy. Our country's ability to achieve trade and non-
proliferation objectives with China has suffered greatly.
With the election of President Clinton, however, the deadlock is
coming to an end. We are fortunate to have an administration that
believes in challenging China's gross violations ofhuman rights, its
unwillingness to open its markets and its refusal to abide by arms
MFN
control regim.es. President Clinton has agreed that status is
an appropriate tool to attain these objectives.
Congress can and should work with the President to quickly es-
tablish a unified and forceful China policy. Toward that end, I be-
lieve the President should administratively impose conditions on
MFN
China's status. The President should require that China use
substantial progress in meeting these conditions over the next year
MFN
in order to retain status. I also believe the conditions the
(1)
MFN
President places on for China should primarily focus on
human rights concerns.
MFN
In order to receive status next year, China should achieve
substantial progress in preventing gross violation ofhuman rights,
releasing all political prisoners, preventing exports of prison labor
products, allowing international inspection ofChinese prisons, end-
ing religious persecution and lifting constraints on freedom of the
press and peaceful assembly.
In addition, China should be required to live up to their promise
to abide by both the missile control regime and the nuclear control
treaty.
The Clinton administration should explore other levers to
achieve these objectives as well. First, enforcement ofexisting sanc-
tions should be strengthened. The Bush administration repeatedly
waived these sanctions, sending consistently the wrong signal to
Beijing that it was business as usual. I may be willing to explore,
however, the possibility of linking some of these sanctions to im-
prove Chinese behavior on the international front.
Second, the Customs Service should increase its effort to prohibit
Chinese forced labor products from entering the United States. The
State Department must demand that the Chinese live up to their
commitment under the memorandum of understanding on prison
labor. China's current unwillingness to abide by these agreements
is unacceptable. American companies and workers who have to
compete with low wages across the globe are ready to accept that,
but they cannot be asked to tolerate competition from slave labor.
Third, the United States should demand further access to the
Chinese market. We have a massive trade deficit in China which
exists because ofdistortions, not because ofreal competitive advan-
tages. The Clinton administration should demand the Chinese live
up to the provisions of the 1993 section 301 trade agreement. The
United States currently runs its second largest trade deficit with
China. Section 301 should be used again to achieve greater market
access.
Fourth, the United States should immediately upgrade its rela-
tions with Taiwan. Given its commitment to democracy and its de-
clining trade deficit with the United States, we should stop treating
Taiwan like a second class country. We should work with our
GATT partners to ensure that GATT is accepted as soon as pos-
sible.
These four actions together constitute the beginning of a more
assertive and constructive American policy toward China, by rees-
tablishing the direct link between MFN and human rights and by
demanding that China live up to its international responsibilities.
I am confident the United States can play a constructive role in
bringing about change to the mainland.
I thank the witnesses and look forward to hearing their testi-
mony. I am particularly thrilled to have Harry Wu here with us.
It seems to me that the United States cannot give up the fight
against this injustice and intolerance. Although the difficulties we
face on the European continent, due to the changes in the former
Soviet Union, seem to overwhelm us, it seems to me that that is
not an excuse or a reason to abandon the people in mainland
