Representative Nancy Pelosi vocally opposed the U.S. granting Most Favored Nation (MFN) status to China in 1996, foreseeing severe economic and social repercussions.
Breitbart reported that in the mid-1990s, U.S. trade policy with China became a pivotal issue, marked by spirited debates. Pelosi emerged as a strong critic during the House floor debates concerning the proposal to grant China MFN status. She feared the implications for American workers and the broader U.S. economy.
Pelosi highlighted the unequal trade terms; while the U.S. levied a modest 2% tariff on Chinese imports, China imposed a steep 35% tariff on U.S. goods.
This discrepancy underscored her concern about the lack of reciprocity in trade relations between the two nations.
These remarks have surfaced as Pelosi seems to no longer hold those same concerns for American workers as she is strongly opposing President Donald Trump's tariffs on China that are designed to enforce equality in our trade relationship.
The disparity did not end at tariffs. Pelosi pointed out that only a small fraction of U.S. exports were permitted into China—just 2%. Contrastingly, Chinese products formed a burgeoning portion of the U.S. import market, with projections suggesting they might account for over 40%.
This was a setup, Pelosi argued, that benefited China at the evident expense of U.S. economic interests.
Additionally, Pelosi emphasized the negative impact of this trade relationship on U.S. employment. She claimed that U.S.-China trade supported at least 10 million jobs in China but fewer than 200,000 in the U.S. This stark imbalance, she argued, made the trade relationship a clear "job loser" for the United States.
The consequences of these policies were not nominal; the U.S.-China trade deficit had ballooned to $34 billion and was expected to exceed $40 billion by the end of 1996.
Pelosi's arguments underscored the profound economic imbalance facilitated by such trade agreements.
Later evaluations by organizations such as the Economic Policy Institute (EPI) and the U.S. International Trade Commission (USITC) validated Pelosi's concerns.
These reports, published years after Pelosi's initial criticisms, confirmed significant job losses and extensive damage to local communities as direct results of the trade policies enacted during that period.
Pelosi was also a staunch advocate for human rights, recognizing the moral contradictions in trading with a country that openly violated human rights.
Her commitment to these principles had been evident as early as 1991, when she protested in Tiananmen Square against China's human rights abuses.
Recent reflections on past U.S.-China trade policies reveal a continuum of economic challenges. Pelosi has scrutinized various administrations' approaches to these issues, including pointing out the destabilizing effects of tariff policies introduced by President Donald Trump, which she described as harmful to American workers and akin to a massive tax hike on the American populace.
In retrospect, Pelosi's words serve to illustrate her own hypocrisy and inauthenticity after decades in power. She only cares about preserving a system that has betrayed the American worker and sent American wealth overseas.