China Premier Says Trade Status Will Improve Ties

Premier Li Peng today welcomed President Bush’s decision to renew China’s most favored nation trade status, saying it will help U.S-Chinese ties.

At least two other Asian governments--Hong Kong and Japan--also praised the move, saying friendly ties are important despite Beijing’s crackdown on pro-democracy demonstrators a year ago.

Bush announced Thursday that he favors renewing the trade status for one year, entitling China to the lowest available tariffs on its exports.

“This is not only in the interests of China but in the interests of the United States, too,” the official New China News Agency quoted Li as telling visiting Japanese businessmen.

The agency said Li “noted that his government will, as always, make due efforts to restore and promote Sino-U.S. relations.”

The news agency, in its report on Bush’s decision, claimed that only a small number of Americans supported ending the favored trade status “under the pretext of so-called human rights.”

Other official Chinese media argued before Bush’s announcement that American consumers, rather than Chinese manufacturers, would be hurt most by canceling the favored status.

China Daily said without cheap Chinese canvas shoes, “some Americans would be unable to afford similar shoes manufactured in the United States.”

Last year, China exported about $12 billion worth of goods to the United States, mostly garments and toys. The United States sold China about $5.7 billion worth of goods, led by wheat, fertilizer and aviation equipment.

Hong Kong Trade and Industry Secretary John Chan today said Bush’s move was “very good news from Hong Kong’s point of view.”

In a statement, Chan noted the British colony’s business community and government had engaged in intensive lobbying during the last few weeks to explain how termination of special trade status would harm Hong Kong, which will return to Chinese sovereignty in 1997.