James A. Leach: “for the next generation and perhaps century the most important bilateral relationship in the world is likely to be the…”

“for the next generation and perhaps century the most important bilateral relationship in the world is likely to be the one between China and the United States. In this context, the Congress would be well-advised to extend normal trade relations (what used to be known as most-favored-nation or MFN) with China. Maintaining open trade relations will be the linchpin of a relationship that will have profound importance to the future of peace and prosperity not just in Asia, but for the world. From a historical perspective free trade is a natural extension of the open door policy that hallmarked American involvement in China at the end of the 19th century. Breaching or revoking normal trade relations would effectively drive a stake through the heart of our economic ties with China and place in jeopardy the future possibility of greater Chinese democracy, as well as our relationship with one-fifth of the world's population. President Clinton correctly emphasized continuity with a bipartisan American tradition of engagement during his recent trip to China, but it appears trade may have taken a back seat to politics. In this regard, it must be stressed that although our economic ties to China have grown rapidly in recent years, so too has the size of our trade deficit. It is up some 20% in the first quarter of this year, and may reach a record $60 billion in 1998.”