China's status has been subject to annual review by Congress. Since Tiananmen, SAYS THE ILRF, lawmakers have tried to use this leverage to push human rights conditions - only to be vetoed by President George Bush and sucked into a maelstrom of ''contradictory policies'' since Bill Clinton succeeded Bush in 1993. Overseas markets and investors are increasingly important to China. Unemployment is rising and trade pressures have increased as a result of currency devaluations in countries hit by the Asian financial crisis. Commentators here often fret about that trade deficit.
Some economists note that cheap Chinese imports also help to dampen the U.S. inflation rate.
The Federal Reserve, the United States' central bank, cited low inflation as among the key factors enabling it to ease interest rates last year in a bid to stimulate the economy and spare the United States from recession induced by global economic turmoil. Economic analysts say the latest campaign will not significantly alter the larger economic picture because it will hold U.S. companies doing business in China to international rights declarations already endorsed by China - and to wage standards established under Chinese law. These are sufficiently below prevailing U.S. pay rates not to tip the competitive scales, analysts point out.