H.R. 4590, United States-China Act of 1994 : hearing before the Subcommittee on Trade of the Committee on Ways and Means, House of Representatives, One Hundred Third Congress, second session, July 28, 1994

206 Pages·1994·7.5 MB·English

by  United States. Congress. House. Committee on Ways and Means. Subcommittee on Trade

H.R. 4590, UNITED STATESCHINA ACT OF 1994
Y 4. W 36: 103-97
H.R. 1590, United States-China Act...
HEARING
BEFORE THE
SUBCOMMITTEE ON TRADE
OF THE
COMMITTEE ON WAYS AND MEANS
HOUSE OF REPRESENTATIVES
ONE HUNDRED THIRD CONGRESS
SECOND SESSION
JULY 28, 1994
Serial 103-97
Printed for the use of the Committee on Ways and Means
U.S. GOVERNMENT PRINTING OFFICE
WASHINGTON : 1994
ForsalebytheU.S.GovernmentPrintingOffice
SuperintendentofDocuments,CongressionalSalesOffice,Washington,DC 20402
ISBN 0-16-046399-8

H.R. 4590, UNITED STATFSCHTNA ACT OF 1994
W 36: 103-97
\.
4590, United States-China Act.
HEARING
BEFORE THE
SUBCOMMITTEE ON TRADE
OF THE
COMMITTEE ON WAYS AND MEANS
HOUSE OF REPRESENTATIVES
ONE HUNDRED THIRD CONGRESS
SECOND SESSION
JULY 28, 1994
Serial 103-97
Printed for the use of the Committee on Ways and Means
U.S. GOVERNMENT PRINTING OFFICE
84-095CC WASHINGTON : 1994
ForsalebytheU.S.GovernmentPrintingOffice
SuperintendentofDocuments,CongressionalSalesOffice.Washington,DC 20402
ISBN 0-16-046399-8
COMMITTEE ON WAYS AND MEANS
SAM M. GIBBONS, Florida, Acting Chairman
DAN ROSTENKOWSKI, Illinois BILL ARCHER, Texas
JJ. PICKLE, Texas PHILIP M. CRANE, Illinois
CHARLES B. RANGEL, New York BILL THOMAS, California
FORTNEY PETE STARK, California E. CLAY SHAW, Jr., Florida
ANDY JACOBS, Jr., Indiana DON SUNDQUIST, Tennessee
HAROLD E. FORD, Tennessee NANCY L. JOHNSON, Connecticut
ROBERT T. MATSU1, California JIM BUNNING, Kentucky
BARBARA B. KENNELLY, Connecticut FRED GRANDY, Iowa
WILLIAM J. COYNE, Pennsylvania AMO HOUGHTON, New York
MICHAEL A. ANDREWS, Texas WALLY HERGER, California
SANDER M. LEVIN, Michigan JIM McCRERY, Louisiana
BENJAMIN L. CARDIN, Maryland MEL HANCOCK, Missouri
JIM McDERMOTT, Washington RICK SANTORUM, Pennsylvania
GERALD D. KLECZKA, Wisconsin DAVE CAMP, Michigan
JOHN LEWIS, Georgia
L.F. PAYNE, Virginia
RICHARD E. NEAL, Massachusetts
PETER HOAGLAND, Nebraska
MICHAEL R. MCNULTY, New York
MIKE KOPETSKI, Oregon
WILLIAM J. JEFFERSON, Louisiana
BILL K. BREWSTER, Oklahoma
MEL REYNOLDS, Illinois
JaNICK Mays, ChiefCounsel and StaffDirector
DKHORAll G. COLTON, Deputy StaffDirector
FRANKLIN C. Phikkr, JR., Counsel to the Acting Chairman
PlIILUP D. MoSEIJCY, Minority ChiefofStaff
Subcommittee on Trade
ROBERTT. MATSUI, California, Acting Chairman
SAM M. GIBBONS, Florida PHILIP M. CRANE, Illinois
DAN ROSTENKOWSKI, Illinois BILLTHOMAS, California
BARBARA B. KENNELLY, Connecticut E. CLAY SHAW, Jr., Florida
WILLIAM J. COYNE, Pennsylvania DON SUNDQUIST, Tennessee
L.F. PAYNE, Virginia NANCY L. JOHNSON, Connecticut
RICHARD E. NEAL, Massachusetts
PETER HOAGLAND, Nebraska
MICHAEL R. McNULTY, New York
(ID
CONTENTS
Page
Press release ofTuesday, July 26, 1994, announcingthe hearing 2
WITNESSES
US. Department ofState:
Peter Tomsen, Acting Assistant Secretary for East Asia and Pacific Af-
fairs 84
Hon. John Shattuck, Assistant Secretary for Democracy, Human Rights,
and Labor 94
Office of the U.S. Trade Representative, Hon. Charlenc Barshefsky, Deputy
U.S. Trade Representative 100
U.S. Department of Commerce, Hon. Jeffrey E. Garten, Under Secretary
ofCommerce for International Trade 110
Food andAllied Service Trades Department, AFL-CIO, Jeffrey Fiedler 148
Harding, Harry, Brookings Institution 137
Laogai Research Foundation, Jeffrey Fiedler 148
Lardy, NicholasR., University ofWashington 122
Pelosi, Hon. Nancy, a Representative in Congress from the State of Califor-
nia 5
Solomon, Hon. Gerald B.H., a Representative in Congress from the State
ofNew York 67
UJS. Catholic Conference, Rev. Drew Christiansen 153
SUBMISSIONS FOR THE RECORD
American Forest & PaperAssociation, statement 166
Amnesty International USA, Estrellita Jones, statement and attachment 168
Bonior, Hon. David E., a Representative in Congress from the State ofMichi-
gan, statement 177
Gephardt, Hon. Richard A., House Majority Leader, and a Representative
in Congress fromthe StateofMissouri, statement 178
Human RightsWatch/Asia, MikeJendrzejczyk, statement and attachment 181
International Ladies' Garment Workers' union, Evelyn Dubrow, statement .... 189
Robert F. Kennedy Memorial Center for Human Rights, Kerry Kennedy
Cuomo, statement 191
Stark, Hon. Pete, a Representative in Congress from the State of California,
statement 194
Wilsons The Leather Experts, Minneapolis, Minn., Joel Waller and Brenda
A. Jacobs, statement 197
(III)

H.R. 4590, THE UNITED STATES-CHINA ACT
OF
1994
THURSDAY, JULY 28, 1994
House of Representatives,
Committee on Ways and Means,
Subcommittee on Trade,
Washington, D.C.
The subcommittee met, pursuant to call, at 1:08 p.m., in room
1100, Longworth House Office Building, Hon. Robert T. Matsui
(chairman ofthe subcommittee) presiding.
The press release announcing the hearing follows:
(1)
FOR IMMEDIATE RELEASE SUBCOMMITTEE ON TRADE #33
TUESDAY, JULY 26, 1994 COMMITTEE ON WAYS AND MEANS
U.S. HOUSE OF REPRESENTATIVE
1102 LONGWORTH HOUSE OFFICE BLDG.
WASHINGTON, D.C. 20515
TELEPHONE: [phone]
THE HONORABLE ROBERT T. MATSUI, ACTING CHAIRMAN,
SUBCOMMITTEE ON TRADE, COMMITTEE ON WAYS AND MEANS,
U.S. HOUSE OF REPRESENTATIVES, ANNOUNCES A PUBLIC HEARING
ON H.R. 4590, THE UNITED STATES-CHINA ACT OF 1994
The Honorable Robert T. Matsui, Acting Chairman, Subcommittee on
Trade, Committee on Ways and Means, U.S. House of Representatives,
announced today that the Subcommittee on Trade will hold a hearing on
H.R. 4590, the "United States-China Act of 1994." The hearing will be held
on Thursday, July 28, 1994, in the main Committee hearing room,
1100 Longworth House Office Building, beginning at 1:00 p.m.
In announcing the hearing, Acting Chairman Matsui stated: "I am
pleased that, despite our very heavy workload, the Subcommittee will have
the opportunity to review publicly with Mrs. Pelosi, the Administration,
and other invited witnesses the objectives of this proposed legislation and
the possible consequences if it is enacted into law. United States policy
towards China is a complicated area and it is important to have as much
public debate as possible on this crucial subject."
While oral testimony will be heard from invited witnesses only any
individual or organization may submit a written statement for consid,eration
by the Subcommittee and for inclusion in the printed record of the hearing.
BACKGROUND
:
H.R. 4590 was introduced on June 16, 1994, by Mrs. Pelosi,
Mr. Gephardt, Mr. Bonior, Mr. Rangel, Mr. Stark, Mr. Lewis of Georgia,
Mr. Cardin, Mr. Bunning, et al, and was referred jointly to the Committee
on Ways and Means and to the Committee on Rules. The bill provides that,
notwithstanding the President's recommendation to extend most-favored-
nation (MFN) treatment to all goods imported into the United States from
China from July 1994 to July 1995, MFN treatment during this period would
be denied to: (1) all products produced, manufactured, or exported by the
People's Liberation Army (PLA) and Chinese defense industrial trading
companies; and (2) certain products produced, manufactured, or exported by
state-owned Chinese enterprises from specifically enumerated categories.
In addition, the bill would require the Secretary of the Treasury to
consult with and encourage American businesses having significant trade or
investment interests in China to adopt a voluntary code of conduct
.
following internationally-recognized human-rights principles. This bill
also would require the President to include in the report he sends to
Congress next year, as part of his recommendation for an extension of
China's MFN treatment from July 1995 to July 1996, an assessment of the
extent to which China has made progress on conditions relating to human
rights; the export of goods produced using convict, forced, or indentured
labor; unfair trade practices; and weapons proliferation.
DETAILS FOR SUBMISSION OF WRITTEN COMMENTS:
Persons submitting written comments for the printed record of the
hearing should submit at least six (6) copies by the close of business on
Thursday, August 4, 1994, to Janice Mays, Chief Counsel and Staff Director,
Committee on Ways and Means, U.S. House of Representatives, 1102 Longworth
House Office Building, Washington, D.C. 20515. If those filing written
comments for the record of the printed hearing wish to have their
statements distributed to the press and the interested public they may
provide 100 additional copies for this purpose to the Subcommit,tee on Trade
office, room 1136 Longworth House Office Building, before the hearing
begins
FORMATTING REQUIREMENTS
:
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submittedsolelyfordistributiontotheMembers,thepress,andthepubicduringthecourseofapubichearingmaybesubmittedInotherforms.
Acting Chairman Matsui. This hearing will come to order. To-
day's hearing will focus on H.R. 4590, Congresswoman Pelosi's
United States-China Act of 1994. I would first of all, like to thank
the Members in attendance. We will have other members arriving
shortly. I would also like to say to the audience that we appreciate
your participation here.
I would like to make a few comments before we go to our wit-
nesses. We are going to limit the witnesses on the third and fourth
panels to 5 minutes each, but the members and administration rep-
resentatives who will testify may testify fully.
We must conclude today by approximately 4:15 because the full
Committee on Ways and Means intends to mark up H.R. 4590 im-
mediately following the hearing today.
I would like to ask members if any of them have any opening
statements they would like to make.
Mr. Coyne.
Mr. Kopetski.
Mr. Kopetski. Thank you, Mr. Chairman. I do have a statement
that I will just enter into the record, but let the record show that
I clearly oppose the legislation.
Acting Chairman Matsui. Yes. Thank you, that statement will
be included in the record, Mr. Kopetski.
Opening Statement of Hon. Mike Kopetski
Mr. Chairman, I wish I could enthusiastically thank you for conducting today's
hearing. I can't. Instead ofcompleting important Ways and Means Committee work
on GATT, health care, Superfund financing or even welfare reform; today, we are
obliged to protect committee jurisdiction and conduct this hearing on conditioning
most favored nation status for China.
Like every Member of Congress, 1 have the greatest respect for Congresswoman
Nancy Pelosi and her tireless efforts to promote human rights improvements in
China.
tioHnowCehvinear',sItorapdpeossetavtiugso.roCuosnldyitHi.oRn.in4g59o0r,dtehneyinnegweMstFNverhsaisonbeoefnlecgailslleadtitonhetonuccolnedair-
bomb oftrade relations. I agree with this contention. And make no mistake, the fall-
out from this nuclear trade bomb will hurt the Chinese citizens, particularly those
in the prosperous south where the entrepreneurial spirit grows —daily, and here in
America. Thousands ofAmerican families will pay a hea—vy price high-payingjobs
in aerospace, agriculture, and other high-tech industries for the promise ofhuman
rights improvements in China. No one, including the proponents of H.R. 4590, can
guarantee this legislation will have the desirea human rights effect in China. In
fact, many argue this course of action will worsen the plight of human rights in
China. Nicholas Kristoff, the former New York Times bureau chief in Beijing re-
cently wrote, " * * * with a struggle underway to succeed Deng Xiaoping, China's
89-year-old ruler, a confrontation between China and the United States could tip the
balance to the hard-liners whose campaign platform (within the Politburo) is even
more repression. Talk to Chinese peasants, workers and intellectuals and on one
subjectyou get virtual unanimity: Don't curb trade."
MFINwaanntdtofotrahkiestphoilsicoyppoofrctounnsittryucttoivceoemnmgeangdemPernets.idTehnet CClliinnttoonn,abdomtihnifsotrreaxtitoenndhiansg
tackled human rights in China head on and at the highest levels. President Clinton
met with Chinese President Jiang at the Seattle APEC meeting. On five occasions,
Secretary Christopher has met with his Chinese counterpart. Secretaries Bentsen
and Espy have both visited China, and Secretary Brown will do so in the coming
weeks. Assistant Secretary ofState John Shattuck has been to China several times
to address specifically human rights, including a personal meeting at the U.S. Em-
bassy with Wei Jingsheng, All of these contacts with the Chinese leadership in-
volvedhuman rights discussions initiated by the United States.
Mr. Chairman, I believe the administration's policy ofconstructive engagementof-
fers the best hope for long-term, sustained and meaningful human rights improve-