Washington is threatening to slap 100 percent tariffs on up to $3 billion in Chinese exports to the United States, and demands Beijing raid or shut down 30 factories in southern China. Chinese officials say they will retaliate, possibly by halting shipments of U.S. aircraft to that country.

Following two days of negotiations over alleged infringements of U.S. copyrights by Chinese companies. Clinton administration officials announced May 14 they would publish a list of Chinese goods that might be sanctioned. Washington claims Beijing has not lived up to an agreement reached in February 1995 after a near- trade war over the production of unlicensed software, compact disks, and videos in China.

The threat comes in the midst of a debate in Washington over the renewal of China's "most favored nation" trading status. The status allows for relatively low tariffs on most Chinese imports to the United States. Chinese exports to the United States came to nearly $46 billion in 1995, while U.S. exports to China were around $12 billion. The Clinton administration is expected to call for unconditional renewal of Beijing's trading status.

The Republican presidential candidate, Sen. Robert Dole, has also stated his support for the renewal. In a May 9 speech he echoed Clinton's calls for trade sanctions, but accused the current administration of inadequately enforcing the 1995 "intellectual property" agreement. Dole also proposed a "Pacific Democracy Defense Program" to develop and deploy a high-tech missile defense system for Taiwan and other Asian governments.

Politicians lobbying against the most favored nation renewal have cited alleged human rights abuses and the Chinese government's insistence on reunification with Taiwan. They have also charged Beijing with shipping equipment to Pakistan that can be used to make nuclear weapons.

Rightist politician Patrick Buchanan has recently attacked both Clinton and Dole for their stance toward China. "It is time Republicans demonstrated that they loathe tyranny more than they love trade," he said, while attacking Clinton for "abject appeasement" of Beijing. Buchanan called for allowing China's trading rights to lapse in June.

Defenders of the current status point to huge economic losses they say could force U.S. companies to the sidelines and give European companies the field for a growing trade market. "I don't think America would want to be on the outside of that market looking in," said one U.S. lobbyist.  
 
 
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