The bilateral agreement reached between the U.S. and China last November is comprehensive in its scope, providingaddressing substantially greater market access for U.S. goods, and services, lower tariffs, and broad trading and distribution rights, and protections for nearly every sector of the U.S. economy. This agreement opens enormous possibilities in China for U.S. high technology companies. In fact, no issue currently before Congress will have a greater impact on the high tech community, and America’s ability to compete in the New Economy than China’s accession to the WTO and the market opening that brings.

I note that Motorola is a member of the U.S. High-Tech Industry Coalition on China. The coalition is comprised of eleven trade associations representing U.S. manufacturers of semiconductors and semiconductor equipment and materials, computers, electronics, software and telecommunications equipment, as well as U.S. internet companies. A list of coalition members is attached (Attachment 1) and the coalition has submitted a written statement for your review. The coalition wholeheartedly encourages Congress to quickly move to grant PNTR for China.

China’s accession to the WTOThis issue, as much as any other issue, illustrates the challenges and opportunities we face in today's global economy. Our ability as American companies to successfully compete in this international arena depends on the existence of a common set of trading rules. That need for an established and enforceable regime for global trade compels Congress to act soon and affirmatively on PNTR status for China.

Contrary to what some have suggested, extending NTR to China on a permanent basisthis step does not confer preferential treatment on China or ignore the fact that the U.S.-China relationship is a complicated one -- fraught withoccasiona controversies and requiring constant attention. We must acknowledge those problemsrealities and recognize China's accession to WTO membership as one of the ways we can address and resolve them.

In short, PNTR status is not a reward to China or a blanket endorsement of its policies. On the contrary, it is the right thing to do for s well asAmerica's economic and security interests. It is one of the best tools we have at our disposal to influence developments inside China by supporting a more open and market-based system.

Motorola's presence in China dates back to the mid-1980s. In 1986, after considerable research, my father and I joined a team of other Motorola executives and traveled to China for an extended visit. We met with Chinese leaders and they communicated to us their commitment to move their country from a centrally planned economy to a market economy. Given China’s size, we knew it would take time, and based on their promises and conviction, my father committed $100 million to a partnership with the country of China. Make no mistake: We have pursued our engagement in China this strategy with "eyes wide open." Our experience as the leading U.S. investor in China has not been without its challenges, whether related to China's transition to a market-oriented economy or the ups and downs of our governments' bilateral relations. But I can report to you today that our decision years ago to engage with China has been an unqualified success for Motorola, our employees and the many American companies that support our operations there.

Motorola operates the largest a wholly foreign--owned subsidiary in China, and we have another sevencompanies and six joint ventures in the countryChina. We export approximately $500 m1 billion of products from our U.S. operations per year, and our total sales in China are an estimated $3 billion annually, or approximately 10% of our overall sales. Motorola is currently the largest U.S. investor in China with more than $1.5 billion committed in direct investment.

I also canWe also can report that Motorola is contributing to the process that is reforming and transformingbeen a powerful force for positive change in China. Through our presence in the country, we set an important powerful example of the American way. Through uncompromising scrupulousintegrity and best practices in the conduct of our business, Motorola helps demonstrates is able to show how Chinaa modern and pluralistic society is able to can cope with various contemporary challenges:that of creating a work environment that promotes bothcreativity and harmony;that of balancing individual or corporate interests against the interests of society; andthat of seeking efficiency while providing employees with an ever better standard of living.

In By setting an example, Motorola does not mean to take on a missionary role. But in China as throughout the world, we work to assure that our business activities reflect concern for all our stakeholders, and that they maintain the highest standards in respect for the individual, responsibility to the consumer, protection of the environment, and support for open and fair markets.

The product of this commitment to core principles are evident:

• We contribute to a more open and accountable government, through our steadfast policies forbidding conflicts of interest and improper influence over bureaucratic regulators.

• We promote a cleaner environment by consistently exceeding PRC environmental requirements.

• Through constant training from the top to the bottom of the corporation, we enable our employees to exercise their own judgment and to be innovative in their work.
• We promote personal responsibility by standing behind our products in the marketplace and providing unconditional guarantees to the customers.
• By providing a work environment with standards of cleanliness, performance, remuneration, and fairness well beyond those offered by almost any Chinese company, we have helped raise the expectations of our Chinese employees, who then become more assertive as employees and, perhaps, as citizens.

China is changing. There is lively, open debate about capitalism, market reforms, police brutality, the rights of the accused, and the role of human rights in a socialist economy. Problems remain, but Iwe also have witnessed laudable advances that can be further encouraged only through continued economic engagement governed by established rules of global trade. Motorola's activities in China have been guided by the firm belief that our role is not to render judgment of China's policies from the sidelines, but to be an active participant in the complicated process of modernization and hope we can bring the best of what we have learned at home to our operations overseas.

[Details from previous fact sheet.]

I am attaching for the record (Attachment 2), an article that was published in the Wall Street Journal by Michael Santoro, a professor of business ethics at Rutgers University. Professor Santoromore succinctly than I, concludes that fostering further economic and political liberalization within China is most effectively achieved not through campaigning for human rights, but as a by-product of exporting our good business practices through responsible commercial engagement.

Over the years, Iwe also have seen progress by China in removing various impediments common to global commerce.: China has fostered protection for intellectual property, the reduction in tariff and non-tariff barriers to trade, and the expansion of a legal and regulatory regime that governs commercial activity.[insert others] We know as well as anyone that problems remain and continued progress in trade liberalization and market reform must be made. Fortunately, Congress has the ability to contribute to that process. The bilateral WTO market-opening agreement reached between the U.S. and China last fall holds untold benefits that will be realized only if Congress acts as soon as possible on PNTR.

It is nothing short of essential that the world's most populous nation be brought under the umbrella of the organization that sets and enforces the rules of global trade. Congress can decide whether that happens with the participation of the U.S. or without it. And we should be clear that this is the choice. China will join the WTO, but American firms and workers will get the full benefit of China’s market opening only if Congress approves we sign up for PNTR and we agree to treat China no worse than we treat any other WTO member.

Securing the bilateral agreement reached last fall by approving PNTR status for China isa triple-win proposition -- good for America, good for China, andthe American people and good for the future health and growth of the global economy.

Needless to say, the deal is also good for Motorola. Charlene Barshefsky, Robert Cassidy, and the entire U.S. negotiating team should be commended for negotiating perhaps the most comprehensive and transformative trade agreement ever concluded. I will allude to a few notable highlights that are further described in a statement I will attach for the record (Attachment 3).

• Investment in telecommunications services: Rules permitting increased foreign investment and management of telecom services in China will accelerate the development of one of the world’s largest and fastest-growing telecom markets, creating new opportunities for equipment manufacturers and service providers.

The risks of inaction are clear. I stress again what this vote means. China will enter the WTO with or without our support this year. The key point is that American companies and American workers will enjoy the benefits of China’s accession only if Congress approves PNTR status. Without that important step, America will be left behind as our foreign competitors exploit new opportunities available to them but denied to us as China enters the WTO. A vote against PNTR does not stop China’s entry, but it does give European and Japanese companies an advantage in the market place that will be immediate, hobbling American exports for years to come.

Having sounded that note of concern about the consequences of inaction, I would add that I am heartened by the signs of bipartisan support that I have seen to date. I look forward to further bipartisan agreement to lock in commitmentsagreements that will bolster American exports, extend China's economic reforms and strengthen the rules for more fair and open global trade. By taking this step, Congress can help paint a brighter future for American companies and workers -- and maintain American competitiveness around the world.

American Electronics Association - AEA is the nation's largest high-tech trade group, representing more than 3,000 U.S.-based technology companies. Membership spans the industry product and service spectrum, from semiconductors and software to computers, Internet and telecommunications systems and services. With 18 regional U.S. councils and offices in Brussels, Tokyo and Beijing, AEA offers a unique global policy grassroots capability and a wide portfolio of valuable business services and products for the high-tech industry. For 56 years, AEA has been the accepted voice of the U.S. technology community.

Business Software Alliance – Since 1988, BSA has been the voice of the world's leading software developers before governments and consumers in the international marketplace. Its members represent the fastest growing industry in the world. BSA educates computer users on software copyrights, advocates public policy that fosters innovation and expands trade opportunities, and fights software piracy.

Computer Systems Policy Project – CSPP advocates public policy positions on important trade and technology issues. CSPP is chaired by the Chief Executive Officers of leading American computer systems companies, including: Louis V. Gerstner, Jr., Chairman and CEO of IBM Corp. and Chairman of CSPP; Robert Bishop, Chairman and CEO of SGI; Michael Capellas, President and CEO of Compaq Computer Corporation; John T. Chambers, President and CEO of Cisco Systems, Inc.; Michael S. Dell, Chairman and CEO of Dell Computer Corporation; Carly Fiorina, President and CEO of Hewlett-Packard Company; Andrew S. Grove, Chairman of Intel Corporation; Richard A. McGinn, Chairman and CEO of Lucent Technologies; Scott G. McNealy, Chairman and CEO of Sun Microsystems, Inc.; Lars Nyberg, Chairman and CEO of NCR Corporation; Lawrence A. Weinbach, Chairman,President and CEO of Unisys Corporation.

Computing Technology Industry Association – CompTIA is a 17-year-old association representing over 7,500 computer hardware and software manufacturers, distributors, retailers, resellers, VARs, system integrators, training, service, telecommunications and Internet companies. In addition to providing a unified voice for the industry in the areas of public policy, workforce development and electronic commerce standards, CompTIA certifies information technology and service professionals with its widely-adopted and vendor-neutral certification programs.

Electronic Industries Alliance – EIA is a federation of associations and sectors operating in one of the most competitive and innovative industries in the world. We are committed to promoting business opportunities for our industries. Comprised of over 2100 members, EIA represents 80% of the $550 billion U.S. electronics industry. Our member and sector associations represent telecommunications, consumer electronics, components, government electronics, semiconductor standards, as well as other vital areas of the U.S. electronics industry.

Information Technology Industry Council – ITI is a small, highly focused association that represents the leading US information technology companies. Our members had worldwide revenues exceeding $460 billion in 1999 and employed more than 1.5 million people in the United States. Believing that free trade is key to our industry's long-term success, we support policies that open markets and break down barriers to trade.

Semiconductor Industry Association – SIA is the leading trade association representing the computer chip industry. The mission of the SIA is to provide leadership for U.S. chip manufacturers on the critical issues of trade, technology, environmental protection and worker safety and health. With the assistance of our members, we strive to achieve: free and open markets worldwide, U.S. leadership in technology, and state-of-the-art programs to protect the environment and provide safe working conditions.

Semiconductor Equipment and Materials International – Based in Mountain View, CA, SEMI is an international trade association serving more than 2,300 companies participating in the $65 billion semi-conductor and flat panel display equipment and materials markets. In North America, over 1330 SEMI member companies provide 46,000 jobs for the U.S. economy, while 750 member companies have less that $5 millions in sales.

Software & Information Industry Association – SIIA is the principal trade association for the software and digital content industry. SIIA provides global services in government relations, business development, corporate education and intellectual property protection to the leading companies that are setting the pace for the digital age.

Telecommunications Industry Association – TIA is a full-service national trade organization with membership of 1,000 large and small companies that provide communications and information technology products, materials, systems, distribution services and professional services in the United States and around the world.

United States Information Technology Office - USITO is a trade organization designed to promote trade and cooperation in the information technology industries of the United States and China. It is committed to increasing the market share of U.S. companies in China's burgeoning information technology sector. USITO is a consortium formed by: the American Electronics Association, the Semiconductor Industry Association, the Software and Information Industries Association, and the Telecommunications Industry Association.

Manager's Journal:
Promoting Human Rights in China Is Good Business
By Michael A. Santoro

06/29/1998
The Wall Street Journal
Page A18
(Copyright (c) 1998, Dow Jones & Company, Inc.)

Contrary to what you may have heard, multinationals doing business in China can help foster democracy and human rights there. Indeed, by pursuing their own self-interests effectively, companies help the people of China. In fact, it is the best-run and most successful companies that make the biggest impact.

The most obvious contribution foreign companies make is economic. Generally speaking, they pay better than domestic companies, helping to reduce poverty and create a middle class with power and interests independent of the state.

But there are other, more subtle ways in which companies can help improve China 's situation. According to research I've conducted with foreign managers and Chinese workers, foreign enterprises impart a wealth of formal and informal learning about values and behavior that can help to build and sustain democracy and foster support for individual rights.

One way foreign companies make a decisive difference is simply by pursuing a policy that all good firms should be practicing at home anyway -- namely hiring and promoting on the basis of merit. In Chinese companies, the best jobs typically go to those with the best guanxi, or connections. A typical anecdote: A Chinese woman working for an American investment bank in Shanghai told me that when she graduated from university she had wanted to work for a Chinese commercial bank, but her parents didn't have powerful connections. Now she is happy that her promotions will be based upon her performance.

The reasons why foreign managers generally hire and fire on merit is obvious to Westerners: They must answer to owners who care first and foremost about the bottom line. By doing so, they foster what in China is a radical notion -- that individual merit should be rewarded. This sense of the value of the individual and of fairness is intrinsic to capitalism. It is, at the same time, an essential characteristic of a culture that respects human rights. In other words, by simply doing what comes naturally, well-run firms can foster human rights.

Another modern corporate practice that helps China 's development is teamwork. Companies like Wall's, the ice cream subsidiary of Britain's Unilever PLC, understand that their commercial success depends upon teamwork, initiative and the sharing of information. Wall's general manager for China , Duncan Garood, is concerned about market share and profits, not politics. Recently he dispatched a team to cut the costs of a particular product. To accomplish this, the workers had to put their heads together and think creatively. Again teamwork, initiative and the sharing of information are hallmarks of a democratic culture. By teaching these skills, foreign companies are helping put in place values and practices that in the long run help foster democracy.

The companies with the deepest commitment to China have set up elaborate training programs for their workers. One U.S.-based manufacturing company with more than 750 workers in Asia sends each of its employees through a training program coordinated from Hong Kong but conducted by locals in the local language. Listening to the company's regional director of training and education explain the training program, one can grasp right away how the training can have a political dimension: "We change a lot and we change very quickly. We don't do things the same every time. We improve. We're not focused on the past. We value open and direct communication." Open communication and receptivity to change are ideas that can't be confined to the workplace once they're out there.

The German-based chemical giant BASF, which employs more than 2,000 people in China , has set up a management development center at Shanghai's elite Jiao Tong University. Seeking to teach "leadership and communication," the BASF program calls for its local executives to "share their thoughts, insights and experiences in a distinctly proactive way." This emphasis on leadership and communication is in marked contrast to the management style prevailing in Chinese state-owned enterprises, where, as the old Chinese proverb goes, the nail that sticks up will be hammered down.

Such training does not take place only in China . Many foreign companies send their top employees on tours of their headquarters to develop better communication, or for MBA training at top schools.

One must be careful not to overstate the impact that foreign companies can have on the development of democracy in China . It will be interesting to see, for example, whether state-owned enterprises will adopt state-of-the-art management techniques successfully to meet foreign competition. The spill-over effects of business activity on political and social change in China are limited initially to the people who work for multinationals and those who associate with them. Still, the potential is great. As Ken Grant of Hong Kong-based Market Access puts it: "Who's to say what the impact will be when a couple of guys are talking over beer after work and comparing their experiences of working in a state-owned company with those in a foreign company?"

---

Mr. Santoro is an assistant professor at the Rutgers Graduate School of Management, where he teaches business ethics.

........................................................................................................................................

Doing Good While Doing Well in China
By Michael A. Santoro

06/12/1998
The Wall Street Journal Europe
Page 8
(Copyright (c) 1998, Dow Jones & Company, Inc.)

Contrary to what you may have heard, multinationals doing business in China can help foster democracy and human rights. But here is the best part: It is by pursuing their own self-interests effectively that companies do good. In fact, it is the best-run and most successful companies that make the biggest impact.

The most obvious contribution foreign companies make is purely economic, of course. Generally speaking, they pay better than domestic companies, helping to create a middle class with power and interests independent of the state. The reduction of poverty alone is a step in the right direction in terms of human rights.

But there are other, more subtle ways in which companies can help improve China 's situation. According to research I've conducted with foreign managers and Chinese workers, there is a wealth of formal and informal learning at foreign enterprises about values and behaviors that can help to build and sustain democracy, and foster support for the rights of the individual.

One way foreign companies make a decisive difference is simply by pursuing a policy that all good firms should be practicing at home anyway, namely hiring and promoting on the basis of merit. Sadly, among Chinese companies, this is seldom the case; the best jobs often go to those with the best connections, or guanxi. In a typical anecdote, a Chinese woman working for an American investment bank in Shanghai told me that when she graduated from university she had wanted to work for a Chinese commercial bank, but her parents "didn't have powerful connections." Now she is happy that her promotions will be based upon her abilities rather than how well she gets along with her boss.

The reasons why foreign firms generally tend to hire and fire on merit is that they must answer to owners who care first and foremost about the bottom line, so they simply cannot afford such a personal style. If they don't pay for performance, they will soon go out of business. By doing so, they foster the radical notion -- radical at least in China and some other places around the globe -- that individual merit matters and should be rewarded.

This sense of the value of the individual and of fairness is intrinsic to capitalism. It is, at the same time, an essential characteristic of a culture which respects human rights. In other words, by simply doing what comes naturally, well-run firms can make a positive human-rights contribution.

Another modern corporate practice that helps China 's development is teamwork. Companies like Wall's, the ice cream subsidiary of U.K.-based Unilever, well understand that their commercial success depends upon teamwork, information-sharing, and initiative.

Wall's general manager for China , Duncan Garood, is a businessman concerned about market share and profits, not politics. Recently he dispatched a cross-functional team to cut the costs of a particular product whose costs, he thought, were getting out of line. He was rewarded with a 10% cost reduction without loss of quality.

To accomplish Mr. Garood's assignment, Wall's workers had to put their heads together and think creatively about re-engineering the product. These are, of course, the trendiest ideas in modern management science. Any firm not practicing them isn't likely to be competitive for very long. Again, though, teamwork, information-sharing and initiative are also the hallmarks of a democratic culture. By teaching these skills, foreign companies are helping to put in place values and practices which in the long run help to sustain a democracy.

The firms with the deepest commitment to China , in fact, have set up elaborate training programs for their workers. One U.S.-based manufacturing company with more than 750 workers in Asia sends each of its employees through a training program coordinated from Hong Kong but conducted by local trainers in the local language. Listening to the company's regional director of training and education explain the training program, one can grasp right away how the training can have a political dimension: "We change a lot and we change very quickly. We don't do things the same every time. We improve. We're not focused on the past. We value open and direct communication." Open communication and receptivity to change are ideas that can't be confined to the workplace once they're out there. Not for too long, anyway.

German-based chemical giant BASF, which employs over 2,000 people in China , has set up a Management Development Center at Shanghai's elite Jiao Tong University. Seeking, among other things, to teach "leadership and communication," the BASF program calls for its local executives to "share their thoughts, insights and experiences in a distinctly proactive way." This emphasis on leadership and proactive communication is, again, in marked contrast to the management style prevailing in Chinese state-owned enterprise where, as the old Chinese proverb goes, the nail that sticks up will be hammered down. The training, incidentally, does not take place only in China . Many foreign companies send their top employees on tours of headquarters to develop better communication, or for MBA training at top schools.

One must be careful not to overstate the impact that foreign companies can have on the development of democracy in China . It will be interesting to see, for example, whether state-owned enterprises will adopt state-of-the-art management techniques successfully to meet foreign competition. The spillover effects of business activity on political and social change in China are limited initially to the people who work for cutting-edge multinationals and those who associate with them. Still, the potential is great. As Ken Grant of Hong Kong-based Market Access puts it, "Who's to say what the impact will be when a couple of guys are talking over beer after work and comparing their experiences of working in a state-owned company with those in a foreign company?"

---

Mr. Santoro is an assistant professor at the Rutgers Graduate School of Management, where he teaches business ethics. He is writing a book about multinational corporations and human rights in China .

........................................................................................................................................

Contrary to what you may have heard, multinationals doing business in China can help foster democracy and human rights. But here is the best part: It is by pursuing their own self-interests effectively that companies do good. In fact, it is the best-run and most successful companies that make the biggest impact.

The most obvious contribution foreign companies make is purely economic, of course. Generally speaking, they pay better than domestic companies, helping to create a middle class with power and interests independent of the state. The reduction of poverty alone is a step in the right direction in terms of human rights.

But there are other, more subtle ways in which companies can help improve China 's situation. According to research I've conducted with foreign managers and Chinese workers, there is a wealth of formal and informal learning at foreign enterprises about values and behaviors which can help to build and sustain democracy, and foster support for the rights of the individual.

One way foreign companies make a decisive difference is simply by pursuing a policy that all good firms should be practicing at home anyway, namely hiring and promoting on the basis of merit. Sadly, among Chinese companies, this is seldom the case; the best jobs often go to those with the best connections, or guanxi. In a typical anecdote, a Chinese woman working for an American investment bank in Shanghai told me that when she graduated from university she had wanted to work for a Chinese commercial bank, but her parents "didn't have powerful connections." Now she is happy that, unlike her parents who work for a state-owned company, her promotions will be based upon her abilities rather than how well she gets along with her boss.

The reasons why foreign firms generally tend to hire and fire on merit is that they must answer to owners who care first and foremost about the bottom line, so they simply cannot afford such a personal style. If they don't pay for performance, they will soon go out of business. By doing so they foster the radical notion -- radical at least in China and some other places around the globe -- that individual merit matters and should be rewarded.

This sense of the value of the individual and of fairness is intrinsic to capitalism. It is, at the same time, an essential characteristic of a culture which respects human rights. In other words, by simply doing what comes naturally, well-run firms can make a positive human-rights contribution.

Another modern corporate practice that helps China 's development is team work. Companies like Wall's, the ice cream subsidiary of U.K.-based Unilever, well understand that their commercial success depends upon teamwork, information sharing, and initiative. Wall's general manager for China , Duncan Garood, is a businessman concerned about market share and profits, not politics. Recently he dispatched a cross-functional team to cut the costs of a particular product whose costs, he thought, were getting out of line. He was rewarded with a 10% cost reduction without loss of quality.

To accomplish Mr. Garood's assignment, Wall's workers had to put their heads together and think creatively about re-engineering the product. These are, of course, the trendiest ideas in modern management science. Any firm not practicing them isn't likely to be competitive for very long. Again, though, teamwork, information-sharing and initiative are also the hallmarks of a democratic culture. By teaching these skills, foreign companies are helping to put in place values and practices which in the long run help to sustain a democracy.

The firms with the deepest commitment to China , in fact, have set up elaborate training programs for their workers. One U.S.-based manufacturing company with more than 750 workers in Asia sends each of its employees through a training program coordinated from Hong Kong but conducted by local trainers in the local language. Listening to the company's regional director of training and education explain the training program, one can grasp right away how the training can have a political dimension: "We change a lot and we change very quickly. We don't do things the same every time. We improve. We're not focused on the past. We value open and direct communication." Open communication and receptivity to change are ideas that can't be confined to the workplace once they're out there. Not for too long, anyway.

German-based chemical giant BASF, which employs over 2,000 people in China , has set up a Management Development Center at Shanghai's elite Jiao Tong University. Seeking, among other things, to teach "leadership and communication," the BASF program calls for its local executives to "share their thoughts, insights and experiences in a distinctly proactive way." This emphasis on leadership and proactive communication is, again, in marked contrast to the management style prevailing in Chinese state-owned enterprise where, as the old Chinese proverb goes, the nail that sticks up will be hammered down. The training, incidentally, does not take place only in China . Many foreign companies send their top employees on tours of headquarters to develop better communication, or for MBA training at top schools.

One must be careful not to overstate the impact that foreign companies can have on the development of democracy in China . It will be interesting to see, for example, whether state-owned enterprises will adopt state-of-the-art management techniques successfully to meet foreign competition. The spillover effects of business activity on political and social change in China are limited initially to the people who work for leading-edge multinationals and those who associate with them. Still, the potential is great. As Ken Grant of Hong Kong-based Market Access puts it, "Who's to say what the impact will be when a couple of guys are talking over beer after work and comparing their experiences of working in a state-owned company with those in a foreign company?"

---

Mr. Santoro is an assistant professor at the Rutgers Graduate School of Management, where he teaches business ethics. He is writing a book about multinational corporations and human rights in China .

(See related letter: "Letters to the Editor: Against the Ceiling" -- AWSJ June 12, 1998)

Copyright © 1999 Dow Jones & Company, Inc. All Rights Reserved.

m

China’s accession to the World Trade Organization is good for the United States, the world, China, and Motorola.

• The U.S. benefits by gaining better access to China’s markets for American manufactured goods, services, and agricultural products.

• The world benefits by applying the rules and obligations to one of the largest trading nations.

• China benefits by promoting and implementing economic, legal, and regulatory reforms necessary to sustain and promote further economic growth.

• Motorola benefits through expanded market opportunities in China.

Specific benefits to Motorola are:

• Investment in telecommunications services: Rules permitting increased foreign investment and management of telecom services in China will accelerate the development of one of the world’s largest and fastest-growing telecom markets, creating new opportunities for equipment manufacturers and service providers.

Unconditional MFN is a cornerstone of the WTO. To secure the benefits of China's WTO commitments, the United States must recognize China as a full WTO Member by extending Permanent Normal Trade Relations (PNTR. If the United States withholds PNTR, the benefits of China's market-opening may go to our competitors in Europe and Japan, while U.S. products and services are excluded.