The consensus is that membership in the World Trade Organization (WTO) would be good for China and would benefit the Chinese economy. What is less certain is whether China's membership in the WTO would be good for the rest of the world or would in any way influence China toward democratic reforms as some hope. This issue has been argued for some time in the United States with referee to giving China most favored nations (MFN) status as a trading partner, and now the argument is moving outward to the rest of the world over the WTO. In the U.S., concerns have been raised specifically because of recent Chinese actions such as possible involvement in spying, threats against Taiwan, and even possible involvement in questionable political fundraising.
The MFN debate is illuminating over how different groups view trade with China. MFN status entitles a country to economic preferences granted by the U.S. only to its best trading partners. Goods from countries on the MFN list are allowed into the United States at the lowest possible import tax, which makes the goods more attractive to U.S. consumers. In the Chinese view, winning MFN status is very important. China is one of the United States' major trading partners, selling the U.S. some $19 billion worth of goods each year, and the U.S. in turn sells China more than $6 billion worth of products each year. It is the President who decides which nations will receive MFN status. President Bush granted the status to China for three years, and President Clinton continued it. Critics of the policy state that giving MFN status to China overlooks the continuing, widespread violations of human rights in that country while also sending the wrong message to the leadership. Human rights experts point out that China continues to arrest and try supporters of the nation's pro-democracy movement while also keeping thousands of political prisoners in jail. They also note that many of the goods ...