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US Business Jubilant over China Trade Deal
The US business community, foreseeing huge profits from the world's biggest market, was jubilant Wednesday following a congressional vote to grant permanent trade privileges to China.
After weeks of furious lobbying by both supporters and opponents of the legislation, the House of Representatives voted 237-197 to replace the 20-year-old annual review of China's trade status with permanent normal trade relations (PNTR).
"PNTR opens China's markets for American products, businesses and farmers, and creates jobs for workers here at home," said US Chamber of Commerce president Thomas Donohue.
China had made PNTR a condition for implementation of a sweeping market-opening accord it signed with Washington last November in exchange for US backing in its bid to join the World Trade Organization (WTO).
That accord will only come into effect once China is a WTO member.
With the House vote Wednesday, and expected Senate approval, China is assured of enjoying on a permanent basis the same low-tariff treatment that the United States accords just about every other country in the world.
The Clinton administration, and its big-business allies, contend that an intensified commercial engagement with China will make it easier for US companies to sell their products on the Chinese market.
Thanks to the deep tariff cuts embodied in the trade accord, the United States stands to boost its exports to China by 13 billion dollars in the next five years.
According to Mustafa Mohatarem, chief economist for General Motors, "GM will generate US exports worth two billion dollars over the next five years ... (in) vehicle sales in China's burgeoning market."
"PNTR will help ensure economic growth and prosperity for both the US and China," said Phil Condit, Boeing chairman and chief executive.
According to Motorola chairman Christopher Galvin, "more exports means more opportunity for American companies and more jobs for American workers."
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