Prudent agreement

The Clinton administration has reasonably withdrawn the threat of trade sanctions against China after Beijing renewed its commitment to stop pirating U.S. copyrighted property. The Chinese have violated similar promises in the past, but it is worth testing their word before acting. A trade war would damage both the U.S. and Chinese economies and poison diplomatic relations.

The Chinese agreed last year to close factories that were illegally knocking off American compact disks, computer software, movies and other copyrighted materials, but after a brief lull the violations resumed.

The administration drew up a list of targets last month for steep tariff hikes if the Chinese did not end the piracy. The threat was justified. The hard-fought political consensus for open trade would not survive if Washington tolerated contempt for fair trade rules. Because China does not belong to the World Trade Organization, the United States could not refer the dispute to an impartial jury.

The administration's strategy has worked so far. Over the past few weeks the Chinese have closed 15 factories turning out illegal compact disks, confiscated machinery, prosecuted scores of individuals and shut distribution centers and theaters showing stolen movies.

-- The New York Times