What is the debate on weather or not China should retain favored-nation trading status all about? Is it really a decision on what is best economically for the United States, and China.
Or is it: the issue of Chinese human rights violations and the fact that if the United States where to revoke the favored nation status of China it would have a profound negative impact on the U.S. economy alone.
(+)Most-favored-nation trade status started in the United States as a version of the European preferential trade system. The Carter Administration first granted most-favored-nation trading status to China in 1980, following the historic efforts of President Nixon during the 1970's to restore diplomatic ties. Historically, a significant difference existed between the unconditional most-favored-nation clause in European trade law and the American version of conditional most-favored-nation. Under unconditional most-favored-nation status, one country's extension of tariff concessions guarantees the same concessions to all nations associated with it through commercial treaties. American conditional most-favored-nation status provided treaty signatories only the opportunity to negotiate most-favored-nation status when most-favored-nat
(-) Other concerns about future dealings with China have also arisen. The United States has voiced its concerns in recent about China's missile and nuclear proliferation activities. These concerns led the United States to limit United States exports to China of supercomputers, satellites and parts, and missile technology. Why is our most favored trading partner-stockpiling weapons? For what reason is China moving nuclear related materials and technology to Pakistan? Needless to say these were some very unsettling events that took place in the early months of 1996. Actions likes these could very well be reason alone for China to lose its most-favored-nation trade status. But yet they were allowed to keep it.
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