06 June 2003

Craner Says U.S. Companies Have Role in Promoting Human Rights, June 5, 2003

(Assistant Secretary of State's June 5 remarks)

Assistant Secretary of State Lorne W. Craner told members of the U.S.-China Business Council June 5 that "U.S. companies are in a unique position to make great strides in promoting human rights in China in a way that we in government cannot."

"You can show China that respecting human rights is not just the right thing to do -- it makes good business sense," he continued.

The State Department's efforts at improving the human rights situation in China can be strengthened by input from the business world, Craner said, "just as we hope that business efforts in China will be strengthened by greater attention to human rights issues."

"One need only think about how the SARS crisis might have unfolded differently if China embraced of freedom of information, speech and the press," he added.

"As we look to the future and especially to the opportunities that are presented by China's successful 2008 Olympic bid, we hope that the U.S. government and the private sector will forge a model partnership to promote corporate citizenship in China -- one that supports both business and human rights," Cramer concluded.

Following is the text of Craner's June 5 remarks, as prepared for delivery:
(begin text)

Remarks at US-China Business Council Annual Meeting
June 5, 2003

It is a great pleasure to join you today and to celebrate the 30th anniversary of the US-China Business Council. I'd like to express my gratitude to US-China Business Council President Bob Kapp for inviting me and giving me the opportunity to discuss the work that the Bureau of Democracy, Human Rights and Labor is doing in China.

As the Assistant Secretary for Democracy, Human Rights, and Labor, my job is to ensure that US policy reflects the President's belief that "America will always stand firm for the non-negotiable demands of human dignity: the rule of law; limits on the power of the state; respect for women; private property; free speech; equal justice; and religious tolerance."

While the Bureau promotes and monitors democracy and human rights globally, we tend to focus on areas where the promotion of human rights, democracy and rule of law is strongly in our national interest. Just as with international trade, when it comes to human rights, China is an important focus.

When most people think about the work that the State Department does to promote human rights, the image of high-profile dissidents stepping off of planes in Detroit or Chicago springs to mind.

I am proud of the work that the US government, Congress, NGOs and others have done to secure the release of these individuals who have done nothing other than try to exercise their internationally-recognized rights.

In the two and a half years of this Administration alone, we have seen many important releases or sentence reductions, including numerous Tibetans, such as Ngawang Sangdrol and Jigme Sangpo, and China Democracy Party leader Xu Wenli.

These releases are important for both symbolic and substantive reasons, and we will keep working for the freedom of Rebiyah Kadeer, Jiang Weiping, Su Zhemin and many others. But such releases offer only a snapshot of the ongoing efforts to achieve greater respect for human rights and democracy in China.

It is a mistake to assume that all we do is work on individual, one-by-one releases. In fact, while never losing sight of our goal to see prisoners of conscience released, we see that profound systemic reforms are taking hold in China. These changes hold the promise of making it possible for ALL Chinese to enjoy greater freedom. The United States can both get dissidents freed and, at the same time, press for democratic change. There is no either/or proposition for U.S. policy.

Our policy and approach is far-reaching and multi-faceted because we firmly believe that a successful human rights policy must take into account the ways in which Chinese politics and society have changed over the past twenty years. These changes are having a broad impact on the majority of Chinese and the way they live.

The growing diversity of opinion in Chinese society, the freedom that Chinese citizens have to decide where and how to work and live, and the institutional and cultural foundations that are being laid to support a respect for the rule of law in China are all part of a positive trend. We welcome these developments and indeed, after many years of talking about it, are now supporting them through a $15 million appropriation from Congress.

The State Department recognizes that these two Chinas -- one that has a poor human rights record and one that is a transitioning society -- exist side-by-side. We cannot and do not focus on one of these Chinas at the expense of the other.

Grassroots elections are underway at the same time that scholars are sentenced for discussing expanding elections to higher levels.

Labor laws are being revised and reformed at the same time that labor activists are being harassed for seeking to exercise their rights under those laws.

Change is coming to China. It is not yet a country of rule of law, but it has taken important steps to move in that direction.

As American companies doing business in China, you too are aware of the contradictions that I have discussed here today.

I have been impressed with the candor and sincerity that U.S. companies have expressed to me in discussing the challenges to good corporate citizenship when it comes to China.

Over the past several years, many U.S. companies have taken bold steps to ensure compliance with labor and environmental standards, promote greater access to and transparency of information, and increase philanthropy and the infrastructure that makes it effective.

And in doing so, some companies have found that China's challenging human rights and legal environment can complicate their efforts.

Compliance officers have found that implementing workplace codes of conduct can be difficult. Philanthropic efforts have sometimes been stalled as companies search for civil society partners to collaborate with.

Despite these difficulties, U.S. companies are in a unique position to make great strides in promoting human rights in China in a way that we in government cannot. You can show China that respecting human rights is not just the right thing to do -- it makes good business sense.

One U.S. company here today is already showing how that can be done. Chindex International, a small, U.S. woman-owned company found a way to demonstrate outstanding corporate citizenship, innovation and exemplary international business practices in China. In 2002, it received the Secretary of State's Award for Corporate Excellence for its work in delivering healthcare products and services in China.

The road to good corporate citizenship in China can be rocky. But as you can see from our participation in this event today, both State and Commerce are committed to supporting your efforts. We can take measures that help fund programs that strengthen the rule of law, engage with our Chinese counter-parts or take other appropriate steps.

Let me add that the State Department does have extensive experience working with business on corporate responsibility. Three years ago, the U.S. and U.K. governments sat down with oil and mining companies and NGOs to begin a dialogue on security and human rights. A set of voluntary principles was the result of those discussions. They have formed the basis for a regular and sustained dialogue between companies and human rights NGOs on protecting company personnel and assets while at the same time supporting human rights.

Three years after we began these discussions, companies and NGOs are seeking each other out directly for advice and to prevent misunderstandings.

We look forward to talking with you today to learn more about the programs that you have implemented in China, successes that you have had, and challenges that you have faced.

Our human rights efforts in China will be strengthened by your input, just as we hope that business efforts in China will be strengthened by greater attention to human rights issues. One need only think about how the SARS crisis might have unfolded differently if China embraced of freedom of information, speech and the press.

As we look to the future and especially to the opportunities that are presented by China's successful 2008 Olympic bid, we hope that the U.S. government and the private sector will forge a model partnership to promote corporate citizenship in China -- one that supports both business and human rights. Thank you.

(end text)