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By Stephen Collinson WASHINTON (AFP) -The United States and China stand on the edge of a new economic era, with the Senate poised to vote on a bill revolutionizing trade between the world's most powerful economy and its most populous nation.
Senators are widely expected to pass legislation Tuesday which will slash U.S. tariffs on Chinese exports in return for Beijing's promise to throw open its vast market to American firms. U.S. businesses hope to reap billions of dollars in profits with the passage of the bill, a milestone that China must clear in its exhausting 13-year campaign to join the World Trade Organization. President Bill Clinton will savor a sweet victory when the bill, granting permanent normal trade relations (PNTR) to China becomes law, as he has made its passage a priority of his final year in office. Speedy passage of PNTR has been all but certain since Thursday, when the Senate rejected an amendment which would have punished China with non-trade sanctions for allegedly sending military technology to U.S. adversaries. "We have cleared the final hurdle and moved one step closer to enacting one of the most important pieces of legislation in a generation for U.S. China relations," said Senator Max Baucus, a key backer of the bill. But the long battle to push PNTR through the Senate has exposed the deep fault lines in relations between the U.S. and China, and the widespread suspicion over Beijing's future motives. Although an important boost for Clinton's policy of engaging China, the bill has highlighted the widespread uncertainty among the political elite over how the U.S. should deal with an emerging China. Senator Fred Thompson of Tennessee, who framed the rejected weapons bill, tapped a seam of deep concern, arguing that China had the potential to emerge as a superpower intent on challenging the U.S. "They are engaging in activities that pose a mortal danger to the welfare of this country," he said. "If we ever get in a position in this country where we place the trade dollar above our national security, we won't be a great power for very long." Powerful labor unions lined up against the legislation, fearing that the opening of China's market could suck blue-collar jobs out of the U.S. The bill also sparked an outcry among activists and senators concerned about China's human rights record, who sharply disagree with a provision which will end the annual review of trade ties with Beijing. But supporters say China's entry into the World Trade Organization (WTO) will inject new prosperity into the country, and exert increasing pressure on its Communist rulers to permit greater personal freedoms. "The Chinese people want more control over their personal lives.... People who are poor have little power," said Senator Chuck Hagel of Nebraska. The White House says at least 70 of 100 Senators will vote in favor of the bill, far more than the simple majority it needs to become law. But it took no chances during a nearly two-week debate on the measure, which was passed by the House of Representatives in May. A huge administration lobbying effort swung into action with senior aides telephoning influential senators to shore up support for the bill. Executives from some of the country's most powerful firms, which also make huge financial contributions to senators' reelection campaigns, were also enlisted. The Clinton administration appears to have succeeded in defeating around 20 amendments, ranging from measures on human rights to environmental standards, that senators hoped to attach to the bill. Any changes will have to be passed back to the House of Representatives, a procedure that may not be completed during the tense four-week session before Congress breaks up next month for November's elections. That could effectively kill its hopes of becoming law this year. The U.S. must extend normal trade privileges to China under a landmark 1999 deal speeding China's entry into the WTO. |
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