Congressional Statements

Brown denounces China PNTR vote for ignoring democracies

Press Release
May 26, 2000

U.S. Congressman Sherrod Brown (D-OH) denounced the passage of legislation granting permanent normal trade relations to China. Brown, a senior member of the International Relations Committee who voted against H.R. 4444, said the trade deal proves that multinational corporations are bypassing investment in developing democracies for authoritarian governments.

"It should be common sense to trade with India. The world's largest Democratic nation boasts a large English speaking population and a strong, expanding, middle class. China, on the other hand, supports forced labor, slave labor, and unfair trade practices. Yet, the growing trend in corporate America supports totalitarian regimes, like China, where profits come before people," Brown added.

The Commerce Department identifies India as one of the 10 Big Emerging Markets. India's development in the high-tech and manufacturing industries has created attractive ventures for American trade and investment. "If our high ideals of freedom and democracy are to reach every man and woman in the developing world," Brown said, "the United States needs to increase trade with nations like India. We need to support countries that respect human rights, not punish them."

Brown noted that CEOs argue that engagement with China will bring democracy. Yet, as corporate America continues to invest in developing countries, democratic nations are losing out to more totalitarian governments. In the Post-Cold War decade, the share of developing country exports to the U.S. for democratic nations fell from 53.4 percent in 1989 to 34.9 percent in 1998, a decrease in 18.5 percentage points. In manufacturing goods, developing democracies' share of developing country exports fell 21.6 percentage points, from 56.7 percent to 35.1 percent.

"Corporate America wants to do business with countries with docile workforces that earn below-poverty wages and are not allowed to bargain collectively. They are relocating their manufacturing bases to more authoritarian regimes, where the workers do not talk back for fear of being punished. As developing nations make progress toward democracy, they face losing trade and investment opportunities to totalitarian governments," Brown said.