MFN Stakes Go Beyond Dollars

Today, Congress is taking up, once more, the thorny issues of extending normal trade status (despite the misnomer, “most-favored-nation”) to China.

A growing chorus of voices in Congress and in the conservative movement say, “No, it is time to draw the line.” Many of those voices are friends whose views I respect and admire. I have come to a different conclusion.

My experience in the news media, including newspapers, broadcasting, motion pictures and satellite television, combined with my own experience in running an international business, lead me to conclude that extending permanent MFN status to China is vital to the U.S. economy and will further the very goals sought by MFN opponents.

Movies and other entertainment products top the list of U.S. export products, but we have only a tenuous foothold in China. The potential market for U.S. exporters in these industries is staggering--in the tens or even hundreds of billions of dollars. Granting China MFN status will not open China’s market immediately; many years and much effort will be required. However, denying MFN almost certainly will shut out or delay U.S. access irreparably.

The stakes are much greater than dollars, though. When a U.S. movie succeeds abroad, that movie not only sells tickets, it sells something more valuable: the freedom of ideas. Exporting movies is not exporting cultural imperialism, as some would claim. People in all parts of the world have strong desires for programs that reflect their own culture. Those who ignore that basic fact will not be in the international entertainment business long. Still, imported programs that expose people to different ideas and ways of life have their place, too. As a result, the media business is rapidly becoming a global business. That’s good for the American economy.

The economic effect of exporting entertainment programs, which is significant in and of itself, brings a second wave of trade benefits for exporters of the good and services which are introduced to international audiences in movies and television shows. Even this second wave goes beyond just trade in goods and services. Individualism, enterprise and plain old American-style freedom are sold throughout the world.

This matters greatly for the reason that most-favored-nation status is in question in the first place: human rights concerns. Opponents of MFN apparently believe the Chinese government can be forced by the U.S. to allow more religious freedom, for example. I would make a different bet: Let the Chinese government and the Chinese people sample economic freedom and prosperity, and greater freedom of lifestyle will inevitably follow.

With all its faults, China is making economic progress to the benefit of its people. China has a long history of strong national pride. No nation, including our own, will be easily intimidated by outsiders to change its policies or conduct. Thus, denying China MFN status will not accomplish anything good. To the contrary, such a strategy will be counterproductive by encouraging defiance and assertions of national sovereignty.

Establishing a normal trading relationship with China is far more likely to achieve the goals of those who oppose MFN, albeit not immediately, than denial. Solutions rarely occur overnight. MFN status for China is good for the United States and for the Chinese people.