1. It is in Motorola's best short-term interest to have a strong trade relationship with China because of the vast potential of the Chinese market. To help facilitate this, the company has an obvious interest in encouraging the government to renew or restore China's MFN status. The MFN status means that Chinese products enjoy lower tariffs that help those products compete in the American marketplace. If the MFN status is removed, because of civil rights violations, Chinese products would be relatively more expensive to American citizens.
The Chinese have suggested, although not stated outright, that continued large purchases from American companies (including, by inference Motorola) is dependent on the maintenance of the MFN status. In effect, officials in the United States (both private and government officials) are left with the impression that China would pull its considerable purchasing power from countries which do not extend favorable trade terms and give their business to those countries which do.
Despite the short-term benefits of Motorola lobbying on behalf of the Chinese, there are long-term ramifications and philosophical questions which are not so clear-cut. Perhaps the underlying question is one of philosophy and company culture: does Motorola want to conduct business with a government which advocates the shooting of its own citizens during a protest? Just as international business pressure was brought to bear in the case of South Africa, so Western businesses may have a responsibility to examine the way in which they conduct business.
The decision is not only an ethical one, however. Since China still has a largely centrally planned economy, there is no guarantee that the country will not continue to exert similar "blackmail" on foreign companies such as Motorola in order to gain additional concessions in the future. While Motorola gains benefit from doing business with China, China also benefits from th...