The head triumphed over the heart when President Bush decided Thursday to continue China's status as a most-favored trading partner of the United States.

The decision won't win him many, if any, friends in Congress - or even in China itself, for that matter. But it was still the right thing to do.It must have been tempting for the White House to consider an end to China's present trade status as a means of punishing China for its bloody crackdown on peaceful student demonstrators last June - and for continuing the repression.

But the change in trade relations with China being urged by many members of Congress would hurt more than help.

The resulting loss of exports would be felt most keenly in Hong Kong, through which more than 70 percent of China's exports are shipped, and in southeast China, which specializes in manufacturing for export to the United States. Yet it's the southeast Chinese province of Guondong where regional bureaucrats have been resisting Beijing's crackdowns.

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Moreover, Washington could expect China to retaliate against the United States. Last year, the United States exported $5.8 billion worth of grain, chemicals and hardware to China. The loss of that market could cripple some American businesses.

By all means, President Bush should make it clear that the most favored nation status is being extended for only one year, and that he sees this move not as a reward for tyranny but as an incentive to reform.

Meanwhile, other trade sanctions should remain in place, including the freeze on loans from the World Bank and on the export of sensitive technology.

By continuing to do business with China, the United States is simply retaining a limited but irreplaceable means of exerting some influence on Beijing. But in deciding to retain this tool, the White House should also let China know that it is still on probation, to put it mildly.

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