China Trade Deal: Gains for All
A Chinese trade delegation has gone to Washington for what might be Beijing’s final push for membership in the World Trade Organization. China has been seeking membership in the global trading community for 13 years, anxious to reap the benefits but never quite willing to accept the rules.
As the price of entry, the United States has insisted on sweeping access to China’s markets for U.S. goods and services. When talks begin Monday, Washington should make no last-minute concessions to clinch a deal. But if Beijing accepts the Clinton administration’s terms, the deal should be struck and quickly approved by Congress.
Both sides would benefit from China’s membership in the WTO. Beijing would gain access to the 134 WTO member countries as an equal partner and could participate in writing WTO rules. By accepting the discipline of international standards, China also would become a much more reliable counterpart and attract the technology, know-how and capital it desperately needs for growth.
In exchange, U.S. exporters would find the doors open to new markets. Exports to China, often regulated by little more than the whim of Beijing’s decision makers, would be protected by WTO agreements. Los Angeles-based companies already export $2.4 billion in products to China annually, and the numbers could multiply as new markets open up.
Entertainment and high-tech industries stand to gain most. Moreover, their exports to China would come under WTO protection and its enforcement mechanism against pirates and knock-off artists who annually steal billions of dollars worth of intellectual property.
If the deal is cut, and that is a big “if,” the Clinton administration must act quickly and forcefully to get it approved by Congress. Otherwise the agreement almost certainly will get no hearing next year, when campaigning Democrats and Republicans will find China too hot a potato to touch.
With his eyes fixed on the history books, President Clinton proudly points to his trade record, which includes hundreds of market-opening agreements. Losing the China-WTO deal would eclipse much of that record.
