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Copyright 2000 St. Louis Post-Dispatch, Inc.  
St. Louis Post-Dispatch

May 22, 2000, Monday, FIVE STAR LIFT EDITION

SECTION: EDITORIAL, Pg. B7

LENGTH: 797 words

HEADLINE: U.S. COMPANIES SOW SEEDS OF POSITIVE CHANGE IN CHINA

BYLINE: Philip M. Condit And Michael R. Bonsignore

BODY:

 
China Trade

CONGRESS is set to vote on legislation to grant China Permanent Normal Trade Relations status. An affirmative vote is needed to bring U.S.-China trade policy into conformance with the World Trade Organization rules and to give U.S. businesses access to China's vast marketplace. Critics of WTO and PNTR would have you believe that the surest way to bring about constructive change in China is to cut it off from the free world -- to lock out foreign investment and isolate China into redemption. These critics have rigidly framed the issue to imply that conducting commerce with China is akin to rewarding it. Sadly, that sort of thinking prevents a broader examination of the facts and of what already is happening in China because of the presence of U.S. companies.

For example, Honeywell supports the International Republican Institute's Electoral Reform Program, which works to assist villages in conducting free elections. The Boeing Co. has sponsored courses for Chinese lawyers to learn about U.S. legal processes and the rule of law.

Our firms engage directly with government officials, employees and their families to support the needs of communities. Boeing, in cooperation with Air China, the China Red Cross and Project Hope, helped transport a shipment of urgently needed medicine and supplies worth $ 1.3 million to Beijing in 1998. Honeywell China, with the support of the Honeywell Foundation, has contributed $ 140,000 as well as the voluntary time of its local employees to help build a primary school and community center in a rural village outside of the city of Tianjin.

A report issued by the Business Roundtable, an association of CEOs of major U.S. companies, provides hundreds of other examples of how commercial engagement fosters change in China.

It also challenges the notion that cutting off trade with China will accelerate change. "Corporate Social Responsibility in China: Practices by U.S. Companies, How U.S. Companies Contribute to the Improvement of Social, Labor, and Environmental Conditions" is a compendium of U.S. company-inspired initiatives that promote the kind of change even China's harshest critics demand. The report is filled with facts, not theories, and demonstrates that commercial engagement should be a tenet of any strategy to bring democracy to China.

U.S. firms in China often provide free access to information -- a key underpinning of a democratic society. Many U.S. firms in China provide their employees with Internet access, e-mail systems and international travel. In fact, tens of thousands of Chinese citizens travel to the United States each year for a wide range of company training and thereby receive exposure to Western thought and culture.

Those who oppose China's participation in the world trading system for environmental reasons may be surprised to learn that the Chinese are being exposed to Western environmental regulations and management systems used by U.S. companies. Factories in China are today being certified in FDA's Code of Good Management Practices, the International Standards Organization's environmental program and the U.S. chemical industry's Responsible Care initiative. This is a direct result of the presence of U.S. enterprise and China's involvement in international trade.

U.S. companies in China practice fair labor practices and apply strict standards of employee health and safety. Companies such as Delphi Automotive implement safety systems and record every workplace accident.

Eastman Chemical Co. boasts more than 467,000 work hours without an OSHA recordable accident or environmental incident. ExxonMobil requires its upstream business partners to subscribe to the company's safety and health standards.

THESE examples represent only a fraction of the stories out there. The point is that U.S. companies, strictly through their own volition, are making a significant difference in China and are improving the quality of life for the Chinese people. Without international trade, without engagement, the pace of change will diminish. We are not saying that the presence of U.S. business in China is a panacea that will bring about change overnight. But the story must be told that engagement is a key part of the equation for a healthy relationship with the world's most populous nation.

Congress should vote to give China PNTR so that the United States can conduct trade with this emerging economic power in a system governed by fair rules.

This not only will provide countless opportunities for American enterprise, but also will expose China's 1.3 billion citizens to Western ideals and values. Opening markets and encouraging trade is not just about economics -- it's a policy with benefits well beyond the balance sheet.

LOAD-DATE: May 22, 2000




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