Pace of China WTO Talks Frustrates U.S.

Lead American trade negotiators expressed dismay today at the lack of progress in last-ditch talks with China over its entry into the World Trade Organization.

U.S. Trade Representative Charlene Barshefsky and her team had planned to leave this morning for Washington but stayed on for an extra round of talks. However, the Chinese postponed today’s 9 a.m. session apparently because of a leadership split over the issue within the top ranks of the Communist Party.

“We came hoping to make progress. We’re discouraged that progress has not been made at this point,” Barshefsky said. “The clock has nearly run out.”

China has been trying to get into the World Trade Organization for 13 years. The talks this week are seen as China’s last, best chance to gain entry into the 134-member club. But the clock is ticking. If senior officials from the WTO’s 134 members agree to launch new trade liberalization talks at a Seattle meeting on Nov. 30, new trade rules would stiffen requirements for China’s entry.

Sources close to the Chinese government said this morning’s meeting was put off because the Politburo of the Communist Party was seriously divided on China’s ascension to the WTO.

Entry into the WTO could have a major effect on the Chinese economy, which has alarmed certain factions within China’s government. Specifically, it would break the monopoly that certain ministries have on segments of the Chinese economy, such as telecommunications, and it could hurt China’s farmers because it would allow for the import of potentially large quantities of American agricultural products. WTO entry could also further the privatization of China’s economy, a disturbing prospect for more conservative factions within the Chinese government.