05.28.00
Normal China
a most favored SUIT column by Chris Jungle

This week, the House passed a trade bill (237-197, for those of you scoring at home) which would give China all the perks we give every other "friendly" nation. They are calling it "normal" trade relations as opposed to Most Favored Nation. I suggested Almost Favored Nation for a label, but many people didn't get that one. This is Clinton's last attempt to be known as something other than what we will remember about him. If the Senate doesn't drag its feet and pretend the bill isn't important, Clinton will have bookended his two terms with two major international trade agreements. NAFTA at the beginning and Normal China at the end.

International trade agreements have turned out to be a very good idea. Even with labor groups bemoaning how NAFTA would cause "a great sucking sound" of jobs exiting out borders, the United States has since experienced the largest economic boom in its existence with unemployment at an all time low. Now that the government is considered trading perks for China, the same labor groups are whining about the loss of jobs again. It makes me think labor groups aren't so bright.

First off, a lot of items the United States imports from China are things no one in America wants to make. Plastic equipment, Star Wars figures, American flags--all from China. Anyone want to make Tupperware molds for five dollars or less an hour?

Second, the removal of international trade restrictions helps fuel the global relations. The more countries rely on each other for income, the less likely the countries will go to war with each other. With the exception of Bosnia, no country with a McDonald's has gone to war with another country with a McDonald's. It's a strange truth, but a truth nonetheless. If China begins to count on money coming in from the United States, there's a good chance they might begin to enjoy the perks of the western world.

Clinton believes the best way to reform China via trade, and he's pretty much on the ball with that belief. There are two ways to bribe someone into doing what you want--offer them the gold or the lead. MacAuthur tried to make them take the lead during the Korean War, and it didn't work. Normal trade relations with China is a way of offering gold. I think it stands a much better chance.

Of course, many people are disheartened by the lack of human rights in China (as well they should be). There is no guarantee that more money in the pockets of certain Chinese will lead to better treatment of its citizens. Mexico is still Mexico even after years of NAFTA. One of the staples of capitalism is that a happy worker spends more money. China may figure out that if they pay workers well and promote a "free" environment, the same citizens they flogged will line up in the local Supercenter to purchase products. That's a big IF, but there's nothing wrong with a little wishful thinking.

Strangely enough, Clinton has the backing of more Republicans than Democrats on his Normal China bill. While Republicans are always interested in more bang for the buck, many Democrats waffle because of labor union support and human rights violations. Fortunately, I'm an independent voter and don't have to go along with any party politics. The Jungle position on Normal China is that international trade reduces the chance for wars and violent conflict. I'd rather debate about money with China than whether or not both of us can live on the globe.

So, if all goes well, Clinton will have eased up on trade tariffs for countries in both hemispheres, and in the long run, he may be heralded as an economic guru.

Won't work. We still won't remember him for trade agreements. Clinton fooled around with a fat girl, and nothing else he does can top that.

Chris Jungle has fooled around with fat girls too, but no one was paying attention.


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