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US House rejects bill on China arms sales
(Agencies)
Updated: 2005-07-15 10:21
WASHINGTON - The US House of Representatives rejected a measure that
would have imposed stiff penalties on European firms selling weapons technology
to China.
By a vote of 215 to 203, the "East Asia Security Act" failed to garner the
two-thirds majority needed for passage after US business groups reportedly
expressed concerns that they would be hurt by the measure.
Congressional officials said after the vote that the legislation's author,
Republican Henry Hyde, will make a second attempt to pass the bill next week by
inserting it in State Department funding legislation, where it has better odds
of passage.
The bill welcomed deferral of an EU decision to terminate an arms embargo to
China, but expressed concern that sales could proceed indirectly via various
loopholes.
Among other measures, the legislation called on US President George W. Bush
to make an annual report to Congress "identifying every foreign person of the EU
that has exported to China any arms or dual use technology for military end use
since January 1, 2005."
Democrats offer new bill targeting China trade
Also in the House, opposition Democrats introduced a bill aiming to cut
the massive trade deficit with China by targeting what they called unfair trade
practices.
"The unrelenting, sky-high trade deficits with China reflect a failure by the
Bush administration to adopt trade policies that promote the interests of US
workers, businesses and farmers," said Representative Charles Rangel, one of the
sponsors.
Although introduction of a bill does not guarantee passage, the move
highlighted the growing discontent in Congress over China, which has been
accused of manipulating its currency to help exports.
The bill would
allow US workers and businesses to challenge Chinese subsidies to manufactured
and agricultural exports, and make clear that "currency manipulation" is an
unfair trade practice.
The bill would also revive the "Super 301" provisions of US law to direct the
administration to identify barriers to US exports and an other unfair practices,
including failure to protect intellectual property rights.
Rangel said President George W. Bush has failed to get a level playing field
with the Chinese.
"Time is up, and the Bush administration's China trade policy has flunked
every test," he said.
"The growth in China's economy is one of the most important and predictable
developments of the 21st century and yet the Bush administration is like a deer
caught in the headlights," he said.
"Since the president has no viable policy for dealing with trade with China,
Congress must step in on behalf of America's working families and small
businesses."
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