Statement of the Hon. James A. Kelly, 
Assistant Secretary of State for East Asian and Pacific Affairs, 
U.S. Department of State

        I appreciate the opportunity to comment on U.S.-China ties. This is perhaps America’s most challenging and complex relationship. Successful management of U.S.-China relations is vital to our peace, prosperity and security – and that of our allies. A key to that success will be continuing Normal Trade Relations for China. It is an integral part of our efforts to bind China to acceptable international standards of behavior.

        Our relationship with China is based, first and foremost, on America’s national interests. We will engage and cooperate with China where we can – for example on Korea and South Asia - and compete with or vigorously oppose China where we must - such as on human rights and nonproliferation. As Secretary Powell said, "We will treat China as she merits. China is a competitor and a potential regional rival, but also a trading partner willing to cooperate in the areas where our strategic interests overlap. China is not an enemy and our challenge is to keep it that way."

        We will also consult with our allies and friends in the region. They stand at the forefront of America’s Asia-Pacific policy and I believe they want a strong and reliable U.S. role in the region and at the same time, a productive relationship with their largest neighbor.

        If we are to be successful in promoting and protecting our national interests and in working with our friends and allies, then we must find a way to deal with the contradictions of a changing China –- a country that at times embraces globalism and at other times encourages intense nationalism, a country that wants to join the world trading system but also keeps in place protectionist barriers.

        We can best do this by holding China to its bilateral and international commitments. If China chooses to disregard those obligations in areas as diverse as security, human rights, nonproliferation and trade, we will use all available policy tools to persuade it to move in more constructive directions.

        The cutting edge of reform and positive social development in China is our trade relationship. As the President said, "Open trade opens minds." Economic growth spurred by freer markets leads to greater integration with global economic, trade and information systems. In the process, the marketplace will promote American values, just as trade will, I believe, encourage more freedom and individual liberties. You can already see that happening today in China, where trade has led to greater openness, more competition, more choice, greater job opportunity - and fewer government controls on day-to-day life, particularly in the coastal regions most affected by international trade. Greater access to China’s markets will also promote opportunity for American business, labor and agriculture providers and give American consumers more and better choices with regard to the products they purchase. For all these reasons, we urge the Congress to reject H.J.Res. 50.

        We do not claim that trade alone will remake China in the near term or that it is the single most critical element in the dynamic change that has taken place these last 20 years in the PRC. But trade has been an important part of this process because it exposes many Chinese to a world in which competition and choice inform and transform basic decision-making.

        For the same reasons – that is, enhancing our peace and prosperity, furthering America’s and our allies' interests and helping transform China - the President plans to attend the APEC leaders meeting in Shanghai in the fall and then travel to Beijing. His presence will speak volumes about our commitment to regional prosperity and market-oriented economic reform in China.

        Taiwan is important and this Administration has been clear about the importance we attach to our unofficial relationship with Taiwan and the admiration with which we view the progress made in Taiwan over the past 20 years. The President made clear in his discussion of our recent arms sales package that, as set forth in the Taiwan Relations Act, we will continue to "make available to Taiwan such defense articles and services" as are required to enable Taiwan to defend itself. We have informed the Chinese that military build-ups, especially of short and intermediate range missiles across the Taiwan Strait, are not the answer. Dialogue is. We are direct with the Chinese in Beijing that our maintenance of unofficial relations with the people on Taiwan and our commitment to support Taiwan’s self-defense are fundamental to our "one China" policy. We favor and encourage dialogue across the Strait.

        Our productive relationship with China can only be based on a true reflection of our values. They are our greatest strength. We will be forthright in telling Beijing that its human rights violations are unacceptable to the American people and that change is necessary. Every American Administration has been clear about this: U.S.-China relations cannot reach their full potential so long as Americans are persuaded that the Chinese government systematically violates its people's most basic rights of worship, peaceful assembly and open discourse.

        We are pressing the Chinese government at all levels to end abuses, including use of torture, arbitrary arrest, and detention without public trial or for peaceful expression of political or religious views. In particular, we will press for an end to religious restrictions against Tibetan Buddhists. We have forcefully raised the recent detentions of U.S. citizens and legal permanent residents. The President discussed this issue with President Jiang Zemin in their phone conversation on July 5. In fulfilling our responsibility to all Americans, we issued a Public Announcement through our consular information program that provides the full picture to those planning to travel to China.

        Religious freedom and tolerance are also issues at the center of our concerns about how China treats its people. Taking the longer view, we will also work to preserve Tibetans' unique cultural, religious, and linguistic heritage. We urge China to open a dialogue with the Dalai Lama or his representatives.

        Proliferation is an area where we have shared interests with China, but where we also have disagreements about Chinese actions. It is in our interests and the interests of the entire international community that China abide by international norms and standards in dealing with proliferation issues. We will work hard to have China adhere to those standards.

        There are additional areas where we share interests with China and would like to see it continue or expand constructive policies. We want to build on cooperation against narcotics trafficking; China realizes that drugs are a threat to the Chinese people. The problems of trafficking in persons and illegal immigration are also areas where we have a common interest with China. We want to work with China to combat the spread of HIV/AIDS. And we will continue to work together where possible to protect the environment.

        Secretary Powell stated that we have a strong interest in supporting the development of the rule of law in China. We are prepared to offer an American perspective to China as it attempts to develop a more transparent and accountable legal system; we have, after all, the most open, transparent, and democratic legal system in the world.

        We have enunciated a clear path forward. China is in a position to chart a mutually beneficial course for our future relationship. This Administration wants a productive relationship with Beijing that promotes our interests and those of the entire Asia-Pacific region. We are willing to work with China to address the areas of common concern that I have mentioned. These are items on a bilateral agenda with China that are in our national interest and we believe China's leaders will also see these as common interests.

        But we will be firm in advocating our views:

--We will not shy away from supporting our friends and defending our common interests in the region.

--We will address differences with China forthrightly and in a spirit of mutual respect.

--We will be guided by our values and ensure Beijing understands it cannot have a stable relationship with the American people if it continues to oppress its own citizens.

--Above all, we will insist that China respect its bilateral and international obligations.

        China's behavior, particularly in the next few months, will determine whether we develop the kind of productive relationship the President wants. We encourage China to make responsible choices that reflect its stature in and obligations to the community of nations. The Congress can help nudge China in the right direction by rejecting H.J. Res. 50.