Page 26 - 2020 White Paper on the Business Environment in China
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0 White Paper on the Business Environment in China
president, Bush was assigned to Beijing twice to US-China relations was critical to global stability in
deal with the most disruptive issues that proved to a post-Cold War world (Wang).
be game changers in the relationship. Bush’s May
1982 trip was of particular importance resulting Bill Clinton
in months-long negotiations and a historical joint
statement by Beijing and Washington. On the In the 1992 election campaign, Clinton criticized
second trip in 1985, Bush famously played tennis Bush concerning his Chinese strategies. However,
with vice-premier Wan Li, and also said that “the when Clinton took office himself, he continued
sky’s the limit, the door’s wide open” in terms of the Bush policies. Clinton's highest priority was to
relations with China (Shi). maintain trade with China, boost American exports,
expand investment in the huge Chinese market,
President Bush approached foreign affairs with and create more jobs at home. By granting China
his characteristic conservatism and pragmatism. temporary most favored nation status in 1993, his
He did not rush into new actions or policy administration minimized tariff levels in Chinese
changes but gave himself time to consider the imports. Clinton initially conditioned extension of
administration's policies. When he acted, he did this status on human rights reforms, but ultimately
so with firm conviction and determination. His decided to extend the status despite a lack of
past experiences gave him significant experience in reform. In 1998, Clinton paid a friendly nine-day
foreign affairs, and he relied on the many contacts visit to China.
within the international community he formed
as ambassador to the United Nations, US envoy It was a rocky start, but Clinton eventually
to China, director of Central Intelligence, and Vice signed a landmark trade agreement with China.
President. One example of Bush's conservative and The agreement–the result of more than a decade
pragmatic approach to foreign affairs occurred of negotiations–would lower many trade barriers
early in his administration. Although Bush between the two countries, making it easier to
abhorred the Chinese government's crackdown export US products such as automobiles, banking
in Tiananmen Square, he did not want to jettison services, and motion pictures. The Chinese citizens
improved US-Sino relations by overreacting to ability to afford and purchase US goods should
events. Later in his administration, Bush sent have been taken into consideration. However,
National Security Adviser Brent Scowcroft and the agreement could only take effect if China was
Deputy Secretary of State Lawrence Eagleburger accepted into the WTO and was granted permanent
to China to try to repair the damaged, but not "normal trade relations" status by the US Congress.
destroyed, relationship. In the end, US-Sino Under the pact, the United States would support
relations, while always somewhat fragile, generally China's membership in the WTO.
thrived, particularly in the economic realm, where
both nations have benefitted from a robust trading On May 24, 2000, Bill Clinton clinched what many
partnership (Knott). believed would be the last great legislative victory
of his presidency. That afternoon, the House of
Bush was fundamentally and unwaveringly Representatives voted to award China permanent
convinced that US-China relations were important normal trade relations, effectively backing Beijing’s
not just to the bilateral relationship but to stability long-in-the-making bid to join the World Trade
in the Asia-Pacific region and around the globe. Organization. The historic deal had been Clinton’s
He set about educating Congress to this view, top priority in the waning days of his last term—a
and while defense ties between the United move he hoped would improve relations with the
States and China were sharply reduced, Bush world’s most populous nation, while cementing
was instrumental in maintaining bilateral trade his own legacy of using free trade to advance
relations. While he would later pay the price for America’s foreign policy interests. Clinton’s reasons
this politically, with then-presidential candidate Bill for embracing trade with China had as much to do
Clinton blasting him for not responding strongly with geopolitics as economics. By the late 1990s, the
enough to punish the Beijing, President Bush was People’s Republic was a fast-growing but relatively
resolute in his calculation that the preservation of
26
president, Bush was assigned to Beijing twice to US-China relations was critical to global stability in
deal with the most disruptive issues that proved to a post-Cold War world (Wang).
be game changers in the relationship. Bush’s May
1982 trip was of particular importance resulting Bill Clinton
in months-long negotiations and a historical joint
statement by Beijing and Washington. On the In the 1992 election campaign, Clinton criticized
second trip in 1985, Bush famously played tennis Bush concerning his Chinese strategies. However,
with vice-premier Wan Li, and also said that “the when Clinton took office himself, he continued
sky’s the limit, the door’s wide open” in terms of the Bush policies. Clinton's highest priority was to
relations with China (Shi). maintain trade with China, boost American exports,
expand investment in the huge Chinese market,
President Bush approached foreign affairs with and create more jobs at home. By granting China
his characteristic conservatism and pragmatism. temporary most favored nation status in 1993, his
He did not rush into new actions or policy administration minimized tariff levels in Chinese
changes but gave himself time to consider the imports. Clinton initially conditioned extension of
administration's policies. When he acted, he did this status on human rights reforms, but ultimately
so with firm conviction and determination. His decided to extend the status despite a lack of
past experiences gave him significant experience in reform. In 1998, Clinton paid a friendly nine-day
foreign affairs, and he relied on the many contacts visit to China.
within the international community he formed
as ambassador to the United Nations, US envoy It was a rocky start, but Clinton eventually
to China, director of Central Intelligence, and Vice signed a landmark trade agreement with China.
President. One example of Bush's conservative and The agreement–the result of more than a decade
pragmatic approach to foreign affairs occurred of negotiations–would lower many trade barriers
early in his administration. Although Bush between the two countries, making it easier to
abhorred the Chinese government's crackdown export US products such as automobiles, banking
in Tiananmen Square, he did not want to jettison services, and motion pictures. The Chinese citizens
improved US-Sino relations by overreacting to ability to afford and purchase US goods should
events. Later in his administration, Bush sent have been taken into consideration. However,
National Security Adviser Brent Scowcroft and the agreement could only take effect if China was
Deputy Secretary of State Lawrence Eagleburger accepted into the WTO and was granted permanent
to China to try to repair the damaged, but not "normal trade relations" status by the US Congress.
destroyed, relationship. In the end, US-Sino Under the pact, the United States would support
relations, while always somewhat fragile, generally China's membership in the WTO.
thrived, particularly in the economic realm, where
both nations have benefitted from a robust trading On May 24, 2000, Bill Clinton clinched what many
partnership (Knott). believed would be the last great legislative victory
of his presidency. That afternoon, the House of
Bush was fundamentally and unwaveringly Representatives voted to award China permanent
convinced that US-China relations were important normal trade relations, effectively backing Beijing’s
not just to the bilateral relationship but to stability long-in-the-making bid to join the World Trade
in the Asia-Pacific region and around the globe. Organization. The historic deal had been Clinton’s
He set about educating Congress to this view, top priority in the waning days of his last term—a
and while defense ties between the United move he hoped would improve relations with the
States and China were sharply reduced, Bush world’s most populous nation, while cementing
was instrumental in maintaining bilateral trade his own legacy of using free trade to advance
relations. While he would later pay the price for America’s foreign policy interests. Clinton’s reasons
this politically, with then-presidential candidate Bill for embracing trade with China had as much to do
Clinton blasting him for not responding strongly with geopolitics as economics. By the late 1990s, the
enough to punish the Beijing, President Bush was People’s Republic was a fast-growing but relatively
resolute in his calculation that the preservation of
26
