CORPORATE America's involvement in China is likely to force President Bill Clinton's hand in renewing Most Favoured Nation status, according to the head of a US business organisation. Speaking after an American Chamber of Commerce lunch yesterday, the Conference Board president and chief executive officer, Preston Townley, said: ''Relations between the US and China are tense, but I think China will retain its MFN status this time around. ''I would look for President Clinton to deliver tough talk, calling on China to open up its markets and improve on human rights. ''But major US companies are ever more committed in China and don't want the boat rocked and, quite frankly, the President has more pressing foreign issues in Bosnia, Somalia and Russia.'' Mr Townley, whose organisation boasts more than 2,000 members, predicted a growing reliance on trade blocs and, as a further damper to champions of global free trade, he sees the Uruguay round of talks on the General Agreement on Tariffs and Trade, now in their seventh year, failing. He said America is now putting the bulk of its muscle behind its trade-bloc agreement with Mexico and Canada rather than pursue an equal two-track strategy with the Uruguay round. US companies are already optimistic about the opening of the market of 360 million people that will be created under the North American Free Trade Agreement (NAFTA).
