Clinton Administration Seeks WTO Deal with China

Strategic Insights -

The Clinton administration has been secretly working with China in recent weeks to facilitate Beijing's entry into the World Trade Organization. The proposed deal, which has a 50-50 chance of success, aims to bring China into the WTO by addressing industrial sectors such as telecommunications, textiles, and financial services. The deal would have significant implications for U.S. companies, making it easier for them to establish a presence in Chinese markets. However, it would also require that trade disputes be settled through the WTO, reducing Washington's ability to impose trade sanctions on China.

Key Takeaways:

  • The Clinton administration has been working behind the scenes with China to bring Beijing into the World Trade Organization (WTO).
  • The deal has a 50-50 chance of success, with the odds determined by senior administration officials.
  • The latest effort to hammer out a deal started with a phone call between President Clinton and Chinese President Jiang Zemin on October 16.
  • The proposed deal includes discussions on industrial sectors such as telecommunications, textiles, and financial services.
  • The agreement aims to settle trade disputes through the WTO, reducing Washington's ability to impose trade sanctions on China.
  • U.S. companies may benefit from the deal, as it would make it easier for them to establish a presence in Chinese markets.
  • The trade ministers from the WTO meet in Seattle on November 30, and China's potential influence on the talks will depend on whether the deal is completed in time.

Statistics:

  • The odds of the deal going through are 50-50, according to senior administration officials.
  • 50% chance of success
  • The WTO trade ministers meet in Seattle on November 30.
  • 100% chance of China's influence on the talks depending on the deal's completion
  • U.S. companies may establish a presence in Chinese markets, increasing trade volume.

Sources:

  • U.P.I., "Clinton seeks WTO deal with China; odds are 50-50" (Nov. 2, 1999)
  • The New York Times (date not specified)
  • COMTEX (http://www.comtexnews.com)