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Copyright 2000 The Denver Post Corporation  
The Denver Post

May 10, 2000 Wednesday 2D EDITION

SECTION: DENVER & THE WEST; Pg. B-11

LENGTH: 719 words

HEADLINE: Colorado, U.S. win in China pact

BYLINE: Will Matson, GUEST COMMENTARY,

BODY:
The U.S. Congress faces a historic vote this year: Should we  establish permanent normal trade relations with China? With so  much at stake for America's leading high-tech manufacturing  community, which has a significant presence in Colorado, the  answer should be a resounding 'yes.'

If we fail to normalize trade relations with China, we would  enable the rest of the world to gain access to China's market,  while the United States would be locked out and would lose the  opportunity to influence China positively as it evolves.

Permanently normalizing trade relations with China will  significantly advance the economic interests of U.S. businesses -  from agriculture to autos to high tech. With two-thirds of  Colorado's exports attributed to high-tech products and services,  Colorado stands to benefit greatly from increased access to  China's market.

China is predicted to be the world's second-largest personal  computer and telecommunications market by the end of this year.  The number of Internet users in China has risen to 9 million  already, and is projected to more than double by the end of the  year.

The projected increase in sales for the  information-technology industry will help create higher-wage jobs  and even greater job opportunities. In Colorado alone, there are  at least 6,000 jobs still unfilled in the high-tech arena. To  continue high-tech's strength and vibrancy, our industry needs to  secure exports and sales abroad, and China is a key market for  Colorado businesses to achieve that goal.

The problems of high Chinese tariffs and no predictable legal  recourse in that country are problems that would be eliminated or  greatly diminished with the U.S.-China trade agreement. For the  first time, China would operateunder the same rules that most  countries of the world follow. They have agreed to eliminate  tariffs on high-technology products by 2005, and U.S. companies  would have access to and compete on a more level playing field in  China's market. And benefits will extend beyond the high-tech  sector to agriculture and many other small, medium and large U.S.  businesses.However, in order to realize these benefits, the United  States must permanently normalize trade with China, which means  applying to China the same low tariffs that we extend to nearly  every other country. This country has extended annual normal trade  status to China every year for the past two decades. This time, by  removing the annual review, we receive unprecedented benefits in  return. While the economic arguments are significant, no  discussion of China is complete without decrying China's  intolerance of political, social and religious freedom. China will  not change overnight, but it is gradually improving through the  increased presence of and interaction with U.S. businesses. It is  our belief that we have contributed and must continue to  contribute to positive changes in China through the very presence  and model practices of businesses, like Hewlett-Packard.    American  presence already has planted seeds for greater hopes, dreams and  new ideals in the younger generations of Chinese, through worker  benefits and training, exposure to Western methods and values, and  access to information and the Internet. Extending PNTR to China  will expand these positive influences.While this alone will not  immediately stop abuses in China, it is a far better approach than  disengaging from China and turning our backs on the very people we  wish to help. Add to this the positive direction of integrating  China into the world community, with enforcement through an  international dispute-resolution system and strengthening the rule  of law in China, and the case for approving China PNTR is even  clearer.

While the issues surrounding China are complex and that  nation has a long way to go, the high-tech community firmly  advocates approval of China PNTR. As a worldwide leader, the  United States must provide leadership and opportunity for our  workers, U.S. business at large, and the people of China.   Will Matson is vice president and general manager of  Hewlett-Packard's Storage Organization in Loveland.

LOAD-DATE: May 10, 2000




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