The US House of Representatives last night approved a China trade Bill which will clear the way for China's entry into the World Trade Organisation and open up a vast new market for US business.
The vote of 237 to 197 was not as close as expected and is a major triumph for President Bill Clinton who faced strong opposition from his Democratic Party and the labour unions to normalising trade relations with China.
He welcomed the result as one of the most important foreign policy developments of his presidency as well as a significant boost for US business and farmers. He had lobbied intensely with members from both parties in the run-up to last night's vote.
The measure now goes to the Senate where it should have an easier passage next month. When it becomes law, it will end the annual review by Congress of US trade concessions to China and the threat of trade disruption.
Opponents of the Bill argued that China would not necessarily observe the terms of the trade agreement between the two countries negotiated last year which will lead to lower Chinese tariffs without reciprocal concessions by the US. Opponents also said the annual review was essential for keeping up pressure on China over human rights issues.
The unions fear that more US companies will now move their manufacturing plants to China to benefit from the much lower wages and jeopardise the jobs of US workers.
After two days of often heated debate, about one-third of the Democratic members of the House joined with a majority of the Republicans to vote for the Bill. Vital votes were won over by the inclusion in the Bill of a commission to monitor human rights in China and which can recommend sanctions in accordance with WTO rules.
Mr Clinton will now move to try and heal the division in the Democratic Party and the breach with the unions before the presidential and congressional elections in November.
The powerful autoworkers union which opposed the Bill has said it would not now support Vice-President Al Gore in his presidential bid. Other unions, such as the Teamsters, may follow suit.
Mr Clinton has acknowledged his debt to rival Republicans to secure the passage of the China measure which was opposed by the leader of the Democrats in the House, Mr Dick Gephardt, and two thirds of the party. Republicans favoured the Bill because of the opportunities it will open up for big US corporations in the industrial and services sector such as Boeing, computer-makers and banks.
At present the trade deficit with China is running at a record $80 billion a year.