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American Morning

U.S./China Standoff: Trade Sanctions Against China Possible?

Aired April 06, 2001 - 10:20   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
STEPHEN FRAZIER, CNN ANCHOR: As we are following all these small developments in the U.S.-China stand-off, it's noteworthy to point out that despite President Bush's expression of regret, criticism in China of the United States' position has been unrelenting there. This editorial now from the "China Daily."

"The American government's ignorance of China's demand for an apology has testified to their arrogance in handling international affairs. In Washington's eyes, power is everything and the country with the most power can do whatever it likes." That from the "China Daily."

Now, with accusatory rhetoric like that, a big issue coming to the U.S.-China stand-off is how all of this might affect trade between the two countries and we are turning now to CNN's Bob Franken, joining us from Washington to hear what some members of Congress are saying about that -- Bob, good morning.

BOB FRANKEN, CNN CORRESPONDENT: Good morning, Steve.

And what most members of Congress are saying is very little. That, of course, is a huge weapon, trade. It is characterized by those who support trade as the one thing that could force China into a more open administration, that could put China in a position where this type of incident ultimately would become unnecessary.

There are others on the other side who are saying, however, that, in fact, you don't trade with somebody with whom you have a confrontation like this and it should be pointed out that in June there will have to be, for a variety of reasons, a new vote on whether to continue to extend to China preferred trading status. Preferred, by the way, means normal trading status. That was supposed to have gone away. But for a variety of technical reasons, that vote will have to come.

And some members of Congress are saying it's a point that needs to be addressed now, but most are keeping a low profile on the matter. The administration, as we heard a few moments ago from Major Garrett, is very happy about that. That is a huge weapon. Any disruption in the trade process could, in fact, really exacerbate this situation, is the argument from many who are saying play it low key.

Another problem is the CODEL. There are supposed to have been four trips that were going to be taken during the break that's coming up in Congress, four different Congressional trips to China. Two of them have been put on hold, at least until the Americans are released. There are two others that there's some indecision. There's a lot of hand wringing going on. Members are concerned, of course, that they could mess things up and embarrass themselves publicly.

The administration has gone out of its way to say, however, do the trips if you want, make your own judgment. So right now everybody is trying to make a judgment to try and follow that old Hippocratic oath, admonition, first, do no harm, and the second part of that here on Capitol Hill would be first do no harm to yourself politically -- Steve?

FRAZIER: Bob, interesting, then, since you describe this careful coordination between the White House and Congress, that a very senior member of Congress yesterday, Senator Lugar of Indiana, stepped forward in his position on the Senate Intelligence Committee and did bring up membership to the World Trade Organization and the Olympics and arms sales to Taiwan, almost as if somebody has got to say it and just sort of raise the specter. Is that carefully calibrated?

FRANKEN: It is, and Lugar is almost a professional in these fields. He's got long experience in international relations and you can be assured that he did this with the knowledge of the administration. So, of course, the issue has to be raised. It has to be raised as a possible wedge but the other part of it is right now you don't play your full hand of cards, and that would almost be playing one of the fuller hands of cards.

FRAZIER: Just kind of hint a little bit about what you might be holding.

FRANKEN: Absolutely.

FRAZIER: Bob Franken on Capitol Hill -- Bob, thank you very much.

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