China and the issue of Most-Favored-Nation status: 1989--1992

Since the June 1989 Tiananmen Square Incident Sino-American relations have been strained, especially human rights issues. This paper examines the sources of the conflict and its effect on America'a China policy. Finding a consensus on how best to handle a country like China that is repressive, Communist, and often at odds with the United States has been difficult. Thus, the Bush Administration and Congress have struggled for the leading role in forming U.S. policy toward China. Both sides differ on how change can be most effectively accelerated in an authoritarian state like the PRC. Bush believes in active diplomatic engagement with China, while Congress feels passing legislation conditioning China's Most-Favored-Nation status is the appropriate method. However, recent improvements in China's human rights have led President-elect Clinton to support unconditional MFN. Thus, there is a new consensus that American economic involvement in China promotes the process of economic and political reforms.