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Greenspan Warns US Senate Against Anti-China bill
US Federal Reserve Chairman Alan Greenspan warned the US Senate Thursday against approving an anti-China bill that would sanction China for so-called weapons proliferation.
Greenspan, testifying before the Senate Banking Committee, said the bill sponsored by Senators Fred Thompson and Robert Torricelli could "harm us more than it would harm others."
The senate bill, formally known as China Nonproliferation Act, stipulates that the US should punish China's arms sales to America's enemies or war-prone regions by barring its fund-raising activities in US markets, and restricting US Export-Import Bank financing and credit guarantees for China-related businesses.
It calls for annual assessment of China's nonproliferation and authorizes the US president to carry out the sanctions once relevant accords are found breached.
The United States is by far the largest arms seller in the world.
The White House is strongly opposed to the bill, regarding it as some senators' attempt to set up a new hurdle against an early passage of the legislation on Permanent Normal Trade Relations ( PNTR) with China. The PNTR bill, which passed the House of Representatives in May, is now in the Senate for approval.
Despite a White House veto threat and strong opposition from big business, Senator Majority leader Trent Lott is pressing for a vote this week or next week on the sanctions bill, before voting on the PNTR bill.
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