Chapter 19: Clinton Fattened the CCP, 1993–2001 (Part II)

“Give a peach and receive a plum in return.” Under Clinton’s zealous push, in 2000, the U.S. Congress finally passed legislation granting China permanent most-favored-nation (MFN) status, removing the need for annual approval. This paved the way for China to join the World Trade Organization (WTO). In 2001, China officially became a full member. With MFN status, China exported massive quantities of goods produced with cheap labor, earning huge amounts of U.S. dollars and fattening the “wild bull” of the CCP. The influx of Chinese goods harmed the U.S. economy, particularly labor-intensive industries. Between 1999 and 2011, 2.4 million American manufacturing jobs were lost.

Even at the beginning of granting MFN status, U.S. labor and human rights organizations opposed it, warning that allowing China to dump goods would result in millions of lost jobs. After the U.S. helped China join the WTO, foreign investment poured into China, increasing from $47 billion in 2001 to $124 billion a decade later. China’s foreign exchange reserves skyrocketed.

However, twelve years later, the CCP’s original promises of reform and market opening had all fallen through. Clinton’s “vision of a free China” never materialized. In fact, none of the commitments China had made were fulfilled. Fifteen years after joining the WTO, both the European Union and the United States firmly opposed recognizing China as a “market economy” under WTO rules. From the outset, some members of Congress had warned that the CCP would not become more open or free. A free market requires the rule of law—but in China, the Party is above the law; laws must obey the Party.

For the CCP, greater economic growth simply meant greater political control. Developing the economy was a means to enhance the Party’s power.

Even with the development of the Internet, China did not become freer. Xi Jinping personally heads the Internet leadership group, directly controlling online activities, banning foreign media, surveilling and censoring domestic networks, forbidding free expression, and turning the Internet into a tool to control thought.

Clinton had argued to Congress at the time: “China joining the WTO can weaken the government’s ability to control its vast population while exporting the values of economic freedom to China.” Over a decade of experience has shown that China had no genuine intention to reform toward a free market. They are masters of deception, exploiting loopholes in WTO rules. While they may succeed temporarily, the U.S. government, year after year, did little to curb the CCP’s actions. When China joined the WTO in 2001, the U.S.-China trade deficit was $81.2 billion. By 2008, it rose to $279 billion, and in 2015, to $355.8 billion. China violated its promise not to force technology transfers; about 20% of foreign-invested companies in China (in aerospace, chemical industries, etc.) were compelled to hand over technology to do business.

It can be said that businessmen, lacking a homeland, may deal with devils for profit. They cannot see the true face of the CCP, and their profit-driven instincts dominate their actions. This is understandable. But many American intellectuals, whose understanding of the CCP is vague and profit-driven, are shocking. China experts in the U.S., represented by Kissinger and Ezra Vogel, have become de facto spokespeople for the CCP. Why do some contemporary American “China hands” fail to see the CCP’s authoritarian essence and willingly “dance with the wolf”? Behind this lies a huge chain of interests. The CCP’s “United Front” is one of its “three magic weapons” for victory. Wherever the United Front reaches, Western China experts surrender. These experts find political agents and transmit their understanding of the CCP to their “masters,” forming the theoretical basis for U.S. China policy.

In 2002, after leaving office, Clinton visited China again and gave a keynote speech in Shenzhen titled “WTO and China’s Economy.” He boasted about the lobbying work he had done to help China join the WTO: “I lobbied both Houses of Congress on the economic and political merits of China joining the WTO. Economically, opening the Chinese market could address inflation and create many jobs. Economically, it was easy to lobby, but politically, it was more difficult. China is a great country, with such a large population and long history, an important factor in maintaining world peace. I spent a lot of energy lobbying politically to get China into the WTO.” Clinton praised China’s development and U.S.-China cooperation. Shenzhen paid him an unprecedented appearance fee of $250,000—a “big red envelope” of gratitude for his efforts in bringing China into the WTO.

Clinton failed to realize that by removing human rights conditions and bringing China into the WTO, he had fattened a wild bull. The bull grew horns and acquired numerous weapons to confront the U.S., becoming a formidable opponent. The CCP promised a 15-year transitional period to become a market economy. In the end, not a single commitment was fulfilled. Using the U.S. open market and capital and technology flows, China rose in 20 years to become the world’s second-largest economy. More than a decade later, the U.S. felt a significant threat. Clinton had opened the gates, letting this wild bull roam freely in the free world—truly nurturing a tiger that would later harm. In the struggle against communism, he made a historic error.

Zhong Wen concludes: Clinton prioritized economics over politics. His domestic campaign slogan, “It’s the economy, stupid,” was correct for the U.S. But regarding China, it should have been: “It’s the politics, stupid,” because China operates under the “Four Persistences,” with politics as the core. To counter the CCP, both political and economic tools must be applied effectively. Unfortunately, Clinton had a vague understanding of communism and was at a loss in confronting it. His greatest lifelong mistake was bringing China into the WTO, enabling the CCP to rise. Once China became the world’s second-largest economy, the CCP could attempt to replace constitutional governance with authoritarianism. If Clinton were graded, he would score 50—failing.