Extension of NTR with China in America's interest -- Powell
( 2001-06-02 00:24 ) (7 )

US President George W. Bush will notify Congress on Friday that he plans to renew normal trade relations with China for an additional year, Secretary of State Colin Powell said.

Powell said maintaining normal trade relations would help US exporters while promoting change "for the better" in China.

"The president's decision is not an endorsement of China's policies, some of which clearly conflict with America's views and values," Powell said, writing in The Washington Post.

"Rather, we believe that extension of normal trade relations with China again this year is clearly in America's interest."

Bush signaled his decision earlier this week to extend normal trade relations for an additional year in a speech that was well received by Chinese officials.

"We express our welcome," Foreign Ministry spokesman Zhu Bangzao said in response. "This is a two-way reciprocal trade arrangement between two nations and absolutely not a favor granted by one country to another."

Nonetheless, Bush's decision sets the stage for an emotional debate in the US House of Representatives and possibly the Senate.

Last year, US Congress approved granting China "permanent normal trade relations" (PNTR) putting it on a par with most US trading partners. But the deal hinged on Beijing's entry into the World Trade Organization.

Entry talks have dragged on and China is not expected to join the WTO until early next year, so Bush must now seek a one-year extension of China's trade privileges.

US business groups, who are eager to see China enter the WTO and begin implementing commitments to open its market, plan a major lobbying effort to keep normal trade relations.