China's WTO Entry: A Delicate Balance

The fate of China's entry into the World Trade Organization (WTO) hangs in the balance as the US Congress is faced with a complex decision. Vice President Al Gore's ambivalent support for the deal has energized labor unions, who fear that the agreement will undermine American worker and environmental standards. Meanwhile, the Chinese government's threats against Taiwan have heightened tensions and raised concerns about the potential consequences of China's accession to the WTO.

Key Takeaways:

• The Clinton administration's deal to bring China into the WTO is a critical step towards China's stable transformation into a responsible member of the world trading system.
• The WTO deal requires China to permit its citizens to do business directly with the outside world, reducing their dependence on the Chinese government, and to allow US Internet companies to own 50% of Internet start-ups in China.
• The Chinese government's crackdown on dissent in 1999 was motivated by a fear that the growing personal freedoms of Chinese citizens would lead to demands for political freedom.
• If ratified, the WTO deal could exacerbate the demands for political freedom in China, making it more likely that the country will eventually become more free and open.
• The US has a choice between deterrence and engagement towards China, and both are necessary for maintaining a stable relationship.
• The only place where China poses a threat to US interests is with Taiwan, but US military power is deterring China from invading Taiwan.
• Engaging China in the WTO is the best tool for advancing the US's interests, as it globalizes China and increases the costs for Beijing of any military adventure.

Statistics:

• 50%: the percentage of Internet start-ups in China that can be owned by US companies under the WTO deal.
• 1999: the year in which the Chinese government cracked down on dissent, motivated by a fear of growing personal freedoms.
• $: The estimated cost to Beijing of invading Taiwan without the WTO deal. (Note: No specific number is mentioned in the original text)
• Asia: the region in which China poses a threat to US interests with Taiwan.

Sources:

• "Foreign Affairs," article by Michael Mandelbaum, Council on Foreign Relations expert.