Americans in China fear the worst over trading

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The Independent Online
PEKING - Fears are growing among US businessmen in China that the country's Most Favoured Nation (MFN) trading status will not be renewed in June, writes Teresa Poole.

Philip Carmichael, president of the American Chamber of Commerce in Peking, said yesterday: 'I am still pessimistic about the chances of renewal of MFN for 1994 . . . based upon the remarks we heard today.'

He was speaking after attending a working breakfast with Warren Christopher, US Secretary of State, who today ends a three-day visit to China. The US is linking renewal of MFN to significant progress on human rights but the chamber, worried about retaliation by the Chinese and lost American jobs, urged the unconditional renewal.

Mr Carmichael said Mr Christopher had been asked what his advice would be if he had to make a decision on investing more money in China today. 'I think the answer that we got was mixed, so there is some question whether or not people should at this point make additional investments.'