U.S., China Trade Talks Continue

U.S. and Chinese trade negotiators huddled for a sixth consecutive day today, raising hopes for a deal that would open vast Chinese markets and pave the way for Beijing’s entry to the World Trade Organization.

U.S. Trade Representative Charlene Barshefsky has been in Beijing negotiating with Chinese officials since last Wednesday.

The spokeswoman said Barshefsky, senior White House economic aide Gene Sperling and other U.S. negotiators met with Chinese Trade Minister Shi Guangsheng.

U.S. trade officials declined to comment on where the negotiations stood, but experts said Barshefsky’s meetings with Premier Zhu Rongji may have been groundbreaking.

Sources said few issues remained to be worked out over U.S. demands for access to the Chinese market, potentially the world’s largest with 1.2 billion consumers.

“The truth is the negotiations are continuing and it is impossible to predict the outcome,” President Clinton told reporters aboard Air Force One on his way to Turkey. “They’re still there, and they’re still talking.”

Despite difficult negotiations and time constraints, the White House hoped to hammer out an agreement that would bring Beijing into the 134-member trade organization before Nov. 30, when WTO members will gather in Seattle to launch a new round of global trade negotiations.

Barshefsky’s meeting with Zhu was widely interpreted as positive.

On Friday, she complained that no progress was being made and time was running out.

Although Shi is a high-ranking official, diplomats said his negotiating brief would be limited and any significant deal-making would have to be kicked up to Zhu and President Jiang Zemin.

Zhu is known to be keen for a deal, despite objections from conservatives in the Politburo and protectionist ministers who worry that foreign competition would lead to wholesale factory closures, higher unemployment and social unrest.

Neither side has spelled out what problems bogged down the talks earlier last week.

Analysts speculated that the United States was holding out for greater concessions in the service sector, particularly banking and insurance, and access to China’s rapidly growing telecommunications market.

China was focused on gaining greater access to the U.S. textile market.

Clinton said Friday that a “finite and limited number of issues” were holding up a deal.