November 21, 1999

Trade Agreement Finally Opens Door to China Market

What a difference 7,360 days make in China. It was that long ago that I and the mother of my children stopped to marvel at the first capitalist entrepreneur in communist China.

The place was Tinamen Square in Beijing. Thousands of Chinese – all in dark-blue pants suits proscribed by the Central Committee – crowded around a young man with a Polaroid camera.

For three yuan, about 60 cents U.S., he made photographs of proud parents holding gaily dressed babies.

Chairman Mao Zedong, architect of the disastrous Great Leap Forward, had died six months before and been replaced with Premier Deng Xiaopeng. The new leader opened the universities that had been closed for five years. He ordered schools of all grades to teach English – the “language of commerce.” Then he opened the country to visitors.

We arrived in the third week of the new openness. Crowds of polite Chinese followed us around. None had ever seen a “round eyes” foreigner.

Every night we left our hotel compound to visit stores and state-run “entertainment parks.” Young Chinese would approach and ask, “May we walk with you and practice English?” These walks were highlights of our trip. The students spoke openly of their desire for “modernization” and “democracy.”

We asked the Polaroid entrepreneur how he had obtained the camera inasmuch as American imports had been banned since the Communist Revolution.

With a big smile, he replied in good English that an American had given it to him the previous week as encouragement. Since then he prevailed on Americans to sell him Polaroid film which they could replace in Friendship Stores barred to Chinese. If we could accommodate him he would pay us a “bonus” of three yuan.

“Sorry. We have an ordinary 35-millimeter Pentax. However, we would be pleased if you would accept the gift of a ball-point pen.” His smile got wider. Ball-point pens were another American technical wonder. “Thank you very much. I can sell it for five yuan and buy university books.”

These memories crowd back in response to last week’s announcement of a trade agreement with China that is still communist but of a “radish” variety – red only on the outside.

President Clinton pushed hard for the pact. Certainly he believes it beneficial to the United States. Uundoubtedly he also believes it may be the chief legacy of his besmirched administration.

This event is being compared to that of President Nixon opening China to American influence. By coincidence, my trip to China was one day behind Nixon’s second-trip stops. The U.S. press attributed his trip -- after disgraced resignation -- to an ego quest.

I asked our Chinese guide to read the local newspapers to me every day and learned that Nixon was promoting private American expertise in drilling oil wells to break the OPEC monopoly. China accepted the offer.

I wrote a syndicated column about the real reason for Nixon’s post-presidential visit. He saw a copy and wrote me a letter (now displayed in my study) commending my “perception and accuracy.”

The Chinese then, and still now, regard Nixon a great statesman. The China connection helped rehabilitate him for a positive place in history. Clinton also will have to await the passage of time before he and we will know his place.

Clinton’s deal would grant most-favored-nation status to Chinese exports in return for opening Chinese markets to American products and services. Tariffs on U.S. autos are to be reduced from 80 percent to 25 percent. U.S. telephone and internet companies will be allowed to own 50 percent on any systems they install. China agrees to abide by the ordinary laws of commerce and patent/copyrights.

The agreement is expected to pave the way for China’s membership in the World Trade Organization. As expected, American labor unions criticize with justification. China imposes sweat shop conditions, pays low wages, mandates abortion of third babies and abuses many other human rights.

Now we must see how China handles its nuclear weapon program and its relations with Taiwan which already has a robust capitalist economy.

One must hold their nose to accept Chinese trade promises. However, competition is a two- way street. Processes are shared as well as sales. On a level playing field, democratic capitalism wins.

PARTING SHOTS

In the new Federal budget, Clinton accepts a “tiny” tax cut in return for “maximum flexibility” in making the reductions. This is like giving Dracula a key to the Blood Bank.

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Maryland is prosecuting Linda Tripp under an obscure law for taping a telephone conversation with Monica Lewinsky. Strange. The only person who told the truth about the White House sex scandal is facing prison.

By Lindsey Williams, columnist for Sun Coast Media Group newspapers