China and US lock horns over issue of WTO

[Dao Van <daotb@yahoo.com>]

OCT 26 1999

China and US lock horns over issue of WTO

The US has indicated that its goal is meaningful and fair access to all
of China's markets

By MARY KWANG CHINA CORRESPONDENT

BEIJING -- The United States and China yesterday talked past each other
on China's bid to enter the World Trade Organisation
(WTO) and indicated that the stalemate on
the issue had yet to be broken. 

US Treasury Secretary Lawrence Summers, who arrived in China on Saturday
evening, said in a joint press conference with Chinese Finance Minister
Xiang Huaicheng that Washington's goal in bilateral access talks with
Beijing was
"meaningful and fair access" to all of
China's markets. 

"Certainly, there are issues that have to
be resolved.  I think any difference can be breached on both sides with
goodwill," he said. 

In his turn, Mr Xiang said: "Our view is that the WTO needs China and
the WTO will not be complete without China."

He maintained the Chinese stance that entry to the world trade body
should be based on the principle that China's rights and obligations
must be balanced. 

He said: "Notwithstanding all the twists and turns which have occurred,
relations between China and the US are on the whole moving forward."

Both men met reporters after co-chairing a meeting of the US-China Joint
Economic Commission to discuss domestic and international economic
concerns.  The commission was initiated by the late Chinese patriarch,
Deng Xiaoping, when he visited the US in 1979. 

Mr Summers urged China to work with the US to resolve a growing trade
imbalance between the two countries.  It has been estimated by the US
that the surplus, in China's favour, will this year reach US$60 billion
(S$99.6 billion). 

"In the past two decades, China has
clearly become a major trading partner for the US and has benefited
greatly from access to the US and global markets. 

"We will be interested in learning more
about your thoughts on our respective external situations, including
steps that can be taken to address the imbalance in our bilateral
trade," he said. 

He added that he hoped to discuss how greater opening of the Chinese
economy and financial sector could help support and accelerate other
aspects of China's economic progress. 

His statements were seen as an indirect reference to US hopes of wider
access to Chinese market in various sectors, including banking and
finance, through the WTO. 

Earlier, Mr Summers delivered a speech at the prestigious Qinghua
University in which he touted the benefits of a global market.  He spoke
of the benefits that China's reform of its banking and state-owned
enterprises sectors would gain by WTO membership. 

He is the first US Cabinet minister to visit China since the May 7
bombing of the Chinese Embassy in Belgrade by Nato forces that led to
the suspension of WTO negotiations and raised bilateral tension. 



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