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China

Commerce Secretary Postpones China Trip Amid Congressional Uncertainty

Strategic Insights

— 1 min read

Commerce Secretary William M. Daley has cancelled a scheduled trip to China due to lack of congressional support, heightening tensions over the country's bid to join the World Trade Organization. The trip was intended to sway undecided House members regarding the granting of permanent normal trade relations to China, a crucial step in the country's WTO membership bid. However, organized labor's protests and intense lobbying against the trade bill have apparently dissuaded several House members from joining the trip. As a result, the Commerce Secretary has decided to merge his visit with a similar mission planned later this month by Agriculture Secretary Dan Glickman.

Key Takeaways:

  • The Commerce Secretary's trip to China has been postponed due to a lack of congressional support, complicating the country's bid to join the World Trade Organization.
  • The trip was meant to sway undecided House members regarding the granting of permanent normal trade relations to China, a condition for the country's WTO membership.
  • Organized labor's protests and intense lobbying against the trade bill have apparently dissuaded several House members from joining the trip.
  • China signed an agreement with the United States last year granting wide trade concessions, conditional upon the removal of the annual Congressional review of its trade status, which is linked to the country's violent suppression of pro-democracy activity in 1989.
  • If Congress does not lift the annual review and grant Beijing permanent trade status, China could still enter the WTO with support from the Clinton administration, but this would strain relations with countries eager to benefit from China's trade concessions.
  • Taiwan's membership in the WTO is being held up until China joins, and further delaying China's membership would infuriate Taiwan.

Statistics:

  • The House is expected to vote next month on whether to grant China permanent trade status.
  • The annual Congressional review of China's trade status was put into place after China's violent suppression of pro-democracy activity in 1989.
  • China's membership bid to the WTO has been linked to the country's signing of an agreement granting wide trade concessions with the United States last year.
  • If the US Congress does not grant China permanent trade status, it would have significant implications for US-China relations and the broader international trade landscape.

Sources:

  • "Commerce Secretary Postpones China Trip, Facing Congressional Uncertainty" by The New York Times (publication date not specified)

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