China's Most Favoured Nation status was unconditionally renewed by President Bill Clinton

Washington - China's Most Favoured Nation status was unconditionally renewed by President Bill Clinton despite $3bn (pounds 2bn) of trade sanctions against Peking and a host of other tensions between the two countries.

Describing the extension for a further year of China's trade privileges as a "vote for America's interests, not a referendum on all China's policies", Mr Clinton declared that to deny MFN would further isolate Peking and make the entire east-Asian region more unstable.

Although many Democrats will fight the move, the backing of outgoing Senate Majority Leader Bob Dole, Republican candidate for the presidency, guarantees its approval by Congress.