Statement of the Honorable Earl Blumenauer, M.C., Oregon
Testimony Before the Subcommittee on Trade
of the House Committee on Ways and Means

Hearing on United States-China Trade Relations and the
Possible Accession of China to the World Trade Organization

June 8, 1999

The Ways and Means Committee can play a vital role in helping guide our troubled relationship with the People's Republic of China, and I thank you for holding this hearing today.

Every member of Congress is appalled at the developments in China: the continued struggle for human rights, the situation in Tibet, the theft of American nuclear secrets, alleged interference in our election, and their less than stellar record of economic cooperation.

I commend my colleagues who are deeply concerned about and involved in monitoring human rights throughout China. Their words will make a positive difference in the long run for the cause of freedom.

However, I believe it is a mistake to direct harsh words towards the business community and imply they are directing American foreign policy. It is our solemn responsibility in the Congress to set what we believe to be the correct policy toward China, and I do not delegate my vote to anyone.

Also, the earlier statement comparing the Chinese regime to Hitler and Nazi Germany is also misguided. The Chinese have no ambitions to dominate the world or attack the United States, they are very active in their own sphere of influence in Asia.

Instead of indulging in hyperbole, we need to step back and take a deep breath before moving forward on what is undoubtedly the most important foreign policy relationship in the post-Cold War era. The Chinese can be perplexed by our actions, and understandably so, given our recent on-again-off-again trade negotiations with them and what was to them and many others our inexplicable bombing of their embassy. Frankly, if they had destroyed one of our embassies and killed Americans, I doubt our response would have been one of sustained outrage.

It is understandable that given the current uncertainty, Americans and a number of people in this Congress are undecided about exactly what our next steps and our strategy should be. But make no mistake - China is a major force on the world stage and will continue to be for some time. It has more people than any other country, and Chinese people living abroad represent a huge minority in a number of other countries. The Chinese have an incredibly strong and ancient culture, as well as nuclear power and a veto on the United Nations Security Council. They have traditions and practices that predate our existence and culture by millenia.

Notwithstanding all the problems we've had with China, it is undeniable that real advances have been made since Nixon's visit a generation ago. Tremendous progress has been made in the last 25 years including more individual freedoms for many, increased prosperity, and what we would termed modernization and global connection for hundreds of millions of Chinese. People whose judgement I respect, including those in the community of faith, tell me they see a very different environment in China from what existed 40, 25 or even 10 years ago.

It is important for members of Congress and the American public to put the current controversy into perspective. In regard to the spying, it is an unfortunate fact of life that nations tend to spy on one another. We've had a number of episodes where we discovered our friends and allies conducting both military and industrial espionage on the United States. Our nation in turn spies all around the world; that's no secret as well.

On trade, our relations are in turmoil with our allies. We currently have quite a few conflicts with our friends in the European Union on key trade and economic issues.

Despite our differences, China and America can help each other. China can assist us in our foreign policy objectives. They were a strategic ally against the Soviet Union, which helped hasten the end of the Cold War. They have helped us contain North Korea, the place we're most likely to see American troops in a ground war. Both countries have benefited from each other economically, and the stability we provide by being a reliable market for the Chinese has an invaluable effect. We can only look forward to more cooperation in the future with China on the economic front if we stay the course.

The most important thing to keep in mind with China is that we have to be very clear eyed and pragmatic. Our choices are to isolate it, ignore China, treat it like an enemy, or, carefully manage how we engage China.

Last month, I sat in front of this very same committee with my colleagues and argued in favor of a more reasoned approach to sanctions reform. I believe we have more tools at our fingertips than just the blunt instrument of sanctions. I believe we can cultivate relationships carefully without pulling the rug out from other countries, as revoking Normal Trade Relations with China would do. The United States attempt to isolate tiny powerless Cuba has not softened their policies and Castro remains in power.

I come down unequivocally on the side of careful management of a policy of engagement. We should be both firm and strategic in our thinking when dealing with China's continuing emergence into the family of nations. We should avoid overreaching in isolating ourselves from China, not so much because of loss of economic opportunity but because of the risk of losing a valuable opportunity to connect with the Chinese. We can help accelerate the evolution of this ancient and proud society in a thoughtful and environmentally sensitive manner. Failing to do this, and thus freezing China into a hostile posture, is not good long-term policy for the United States, it is not good for China and it is not good for the world.

It would be a grave mistake to approve this resolution disallowing Normal Trade Relations.

I cannot stress enough the impact of this committee's leadership. Trade is a language that people understand. This is the first major item in regard to China on the agenda since all the furor broke out over the embassy bombing and the Cox Report. Your guidance and leadership is going to help set the tone for this next important stage of the Chinese-American relationship.