TNAG-2244-FCO40-3225-Most-favoured-nation-status-for-China-impact-on-Hong-Kong-1991 — Page 122

Ju 19 '91 14:38 R. DUFFY WALL & ASSOCIATES

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and sectors have become increasingly sensitive to global economic conditions. Revocation of China's MEN trading status would cause unemployment to rise and factory losses to mount in export- producing regions.

Conclusion

Those who engineered the violence in China in June 1989 are unlikely to bear the economic costs associated with the denial of MEN. Instead, those who suffer would be American businesses and their employees, American consumers, and the people of Hong Kong and the progressive areas of China.

China's opening to the outside world over the past decade has accelerated growth in the non-state sectors of the economy; resulted in strong links between China's coastal regions and the global economy that have enabled this reformist region to weather Beijing's periodic efforts to reimpose central government control over economic activity; and introduced market concepts to a generation of Chinese managers involved in joint ventures, trade negotiations, and training in the West. For this process to -- continue, China's most-favored-nation treatment in the United.. States is essential.

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