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Passage One (Clinton Is Right)
President Clinton’s decision on Apr.8 to send Chinese Premier Zhu Rongji packing without an
agreement on China’s entry into the World Trade Organization seemed to be a massive miscalculation. The
President took a drubbing from much of the press, which had breathlessly reported that a deal was in the bag.
The Cabinet and Whit House still appeared divided, and business leaders were characterized as furious over
the lost opportunity. Zhu charged that Clinton lacked “the courage” to reach an accord. And when Clinton later
telephoned the angry Zhu to pledge a renewed effort at negotiations, the gesture was widely portrayed as a
flip-flop.
In fact, Clinton made the right decision in holding out for a better WTO deal. A lot more horse trading is
needed before a final agreement can be reached. And without the Administration’s goal of a “bullet-proof
agreement” that business lobbyists can enthusiastically sell to a Republican Congress, the whole process will
end up in partisan acrimony that could harm relations with China for years.
THE HARD PART. Many business lobbyists, while disappointed that the deal was not closed, agree that
better terms can still be had. And Treasury Secretary Robert E. Rubin, National Economic Council Director
Gene B. Sperling, Commerce Secretary William M. Daley, and top trade negotiator Charlene Barshefsky all
advised Clinton that while the Chinese had made a remarkable number of concessions, “we’re not there yet,”
according to senior officials.
Negotiating with Zhu over the remaining issues may be the easy part. Although Clinton can signal U.S.
approval for China’s entry into the WTO himself, he needs Congress to grant Beijing permanent
most-favored-nation status as part of a broad trade accord. And the temptation for meddling on Capital Hill
may prove over-whelming. Zhu had barely landed before Senate Majority Leader Trent Lott (R-Miss) declared
himself skeptical that China deserved entry into the WTO. And Senators Jesse A. Helms (R-N.C.) and Emest F.
Hollings (D-S. C.) promised to introduce a bill requiring congressional approval of any deal.
The hidden message from these three textile-state Southerners: Get more protection for the U. S.
clothing industry. Hoping to smooth the way, the Administration tried, but failed, to budge Zhu on textiles.
Also left in the lurch: Wall Street, Hollywood, and Detroit. Zhu refused to open up much of the lucrative
Chinese securities market and insisted on “cultural” restrictions on American movies and music. He also
blocked efforts to allow U. S. auto makers to provide fleet financing.
BIG JOB. Already, business lobbyists are blanketing Capitol Hill to presale any eventual agreement, but
what they’ve heard so far isn’t encouraging. Republicans, including Lott, say that “the time just isn’t right” for
the deal. Translation: We’re determined to make it look as if Clinton has capitulated to the Chinese and is
ignoring human, religious, and labor rights violations; the theft of nuclear-weapons technology; and the sale of
missile parts to America’s enemies. Beijing’s fierce critics within the Democratic Party, such as Senator Paul D.
Wellstone of Minnesota and House Minority leader Richard A. Gephardt of Missouri, won’t help, either.
Just how tough the lobbying job on Capitol Hill will be become clear on Apr. 20, when Rubin lectured
19chief executives on the need to discipline their Republican allies. With business and the White House still
trading charges over who is responsible for the defeat of fast-track trade negotiating legislation in 1997,
working together won’t be easy. And Republicans—with a wink—say that they’ll eventually embrace China’s
entry into the WTO as a favor to Corporate America. Though not long before they torture Clinton. But Zhu is
out on a limb, and if Congress overdoes the criticism, he may be forced by domestic critics to renege. Business
must make this much dear to both its GOP allies and the Whit House: This historic deal is too important to risk
losing to any more partisan squabbling
1. The main idea of this passage is
[A]. The Contradiction between the Democratic Party and the Republican Party.
[B]. On China’s entry into WTO.