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Recently China was again granted Most Favored Nation MFN status by the United States This year though China was granted permanent MFN status by the US contingent on when China is accepted into the World Trade Organization WTO This decision was of course very controversial There are many reasons why the US should not grant China MFN status or advocate their membership in the WTO To explain lets start with a brief history of the legislation dealing with Chinas MFN status Beginning in 1934 MFN status which lowers tariffs on imported products significantly was generally granted to all trade partners of the US as part of statutory policy In Sept 1951 the Trade Agreements Extension Act made it obligatory for President Truman to suspend MFN status to the Soviet Union and all other countries associated with the Sino-soviet bloc In July 1952 due to Chinas occupation of Tibet its MFN status was suspended At this time the only way to have MFN status reinstated was by a specific law This all changed in 1974 when the Trade Act of 1974 was passed In this Act Title IV set procedures for attainment of MFN status The procedure calls for a bilateral trade agreement between a country and the US and that counties observance of the freedom-of- emigration requirements set up by the Jackson-Vanik amendment The Act also states that the President has to decide by early June whether to renew a MFN status for another year Congress then must decide whether or not to support the Presidents decision The Tiananmen Square massacre occurred on June 4 1989 Hundreds of thousands of students were after the government ordered the army to fire on the crowd protesting Chinese politics This incident and the repressive policies and violations of human rights by the Chinese government that followed it caused the US to rethink its MFN status policy with China Attempts to take away Chinas MFN status
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