Tech Leaders' Letter in Support of PNTR, 2000

Context: In April 2000, nearly 200 high-technology CEOs signed an open letter urging Congress to grant China Permanent Normal Trade Relations. Released alongside a similar letter from more than 40 governors as part of the Clinton administration’s coordinated push for the May 24 House vote, the letter illustrates the breadth and prominence of the corporate coalition backing engagement, especially the tech sector then driving the late-1990s boom. Signers included the CEOs of Microsoft, Intel, IBM, HP, and many others.

April 3, 2000

Dear Congressman/Senator:

We are writing to urge your strong support for extending permanent Normal Trade Relations (PNTR) status to China. PNTR is an absolute priority for high-tech companies, and we consider it the most critical vote you will make in support of our high technology industries this year.

The high-tech sector is a strong and important contributor to the U.S. economy. It is the largest manufacturing sector in the United States, and has been responsible for nearly half of U.S. domestic growth since 1994. It is the leading R&D sector in the U.S. economy, has provided its workers with salaries 77% higher than average, and is the top manufacturing exporter.

United States negotiators achieved an historic WTO accession package with China. Its provisions will greatly benefit our firms, our employees, and our industry more broadly. Since only China made any trade concessions, it is a completely one-sided deal. Among other things, China has agreed to eliminate tariffs on most information technology products, open its distribution and after-market service sectors, and eliminate market barriers such as mandatory technology transfer, local content, R&D, and export requirements.

PNTR is an imperative for several key reasons. First, China is a huge, critical and fast growing market for high-tech products and services, ranging from e-commerce and internet services to products such as semiconductors, computers, peripherals, software, telecommunications, and semiconductor and other manufacturing and measurement equipment. The fruits of those many years of tough negotiating are at risk if Congress does not establish PNTR with China, since failure to do so would allow China to discriminate against American products and services. We need to bring China under international trade rules in order to secure these benefits and strengthen the position of American high-tech companies in Chinese markets. This will, in turn, increase U.S. jobs and reduce our trade deficit.

Second, China is becoming a major competitor in international markets. It is critical that China compete by the international rules established by the WTO, and that the United States have the ability to bring China to the WTO dispute settlement process, if necessary, to ensure fair competition.

Third, we need PNTR in order to ensure that our companies can fully engage on the ground in China, thereby exposing the Chinese to our American business practices, values and perspectives. PNTR will also facilitate the development and spread of information technologies, including the Internet, ensuring that American firms will be in a position to help shape the continued evolution of China's economic and social environment.

Finally, the health and competitiveness of our sector significantly impacts the national economic security of the United States. Failure to establish PNTR with China would give our formidable European and Asian competitors a huge advantage in China and threaten America's position as the global leader in the development and deployment of cutting-edge technologies.

This is the most important vote you will cast for the U.S. high-technology industry this year. We ask for your support on PNTR with China.

A list of the executives who signed onto the letter is available at the Clinton White House Archives.