WASHINGTON-The Clinton administration, backed by telecom firms and other U.S. businesses, last week said it will launch an aggressive lobbying campaign to win congressional backing this year for China’s membership in the World Trade Organization.
“This agreement is a good deal for America,” said President Clinton. “Our products will gain better access to China’s market in every sector from agriculture to telecommunications to automobiles.”
Indeed, improved U.S. access to China is important to American companies. The United States is expected to have a $67 billion trade deficit with China for 1999.
With the U.S. economy humming along, Clinton has made China WTO entry and other foreign policy matters a priority in his last year of office. In doing so, Clinton would like to transform international achievements into legacy lumber.
That is good news for the wireless industry, which stands to benefit enormously from gaining better access to the world’s most populous nation and a fast-growing emerging market with poor telecommunications infrastructure.
“We definitely applaud the administration on this,” said Matthew Flanigan, president of the Telecommunications Industry Association. TIA represents U.S. telecom equipment vendors.
Flanigan said it is critical that U.S. business get behind the White House’s effort to secure Congress’ approval for permanent “normal trade relations” (formerly most favored nation) status for China.
“It’s a booming market. We’ve got to be part of it,” said Flanigan.
This year, according to Flanigan, China is expected to become the second-largest cellular market in the world. The United States, with more than 80 million subscribers, is the top mobile phone market.
Making the wireless opportunity in a land of 1.3 billion people all the more enticing is the fact that-because of either missing or antiquated telecom infrastructure-China is expected to leapfrog to wireless technology for much of its communications.
“The big agenda is clearly China,” said Jerry Jankowski, president of the National Association of Manufacturers. He said China NTR is a key component of NAM’s high-tech agenda, which is being given to governors, members of Congress and presidential candidates.
Clinton, after deciding to withhold support for China WTO membership last April during a visit here by Chinese Premier Zhu Rongji, agreed last November in Beijing to support China’s entry into the 135-member global trade body.
In exchange, among other things, China agreed to give the United States improved access to telecom equipment and service markets (up to 50 percent).
To seal the deal, Clinton still needs Congress to vote for permanent NTR status for China. Currently, NTR status for China is taken up by Congress annually.
In past years, the China NTR debate in Congress has become a springtime ritual that has provided fertile ground for criticism of China’s human rights record, its treatment of workers, its environmental policies and its military meddling in Taiwan and elsewhere.
In the end, Congress always has approved China NTR.
That is expected to happen later this year, but not before a vicious fight pitting the administration, U.S. business, mainstream Republicans and moderate/conservative Democrats against organized labor, liberal Democrats, environmentalists, human-rights proponents and others.
Though mainstream Republicans support free trade, many remain angry and suspicious of China because of allegations of technology transfers to China and Chinese spies in U.S. labs.
Leading the charge for the administration will be Commerce Secretary William Daley and Steve Richetti, White House chief of staff and formerly a high-powered lobbyist here.
Early in Clinton’s first term and before taking over at Commerce, Daley helped the administration win Congress’ blessing for the North American Free Trade Agreement (NAFTA) with Canada and Mexico.
The riots in Seattle late last year, which contributed to the collapse of WTO talks, may be but a foreshadowing of the political bloodletting that could take place on Capitol Hill when Congress takes up China NTR later this year.
That the debate takes place in a presidential election year and at a time when union-bent Democrats believe they can recapture the House should only add to the volatility.
In perhaps the tightest spot is Vice President Gore, who as the front-running Democratic presidential contender has tepid support from the powerful AFL-CIO. If labor becomes disenchanted along the way with Gore, it could shift its allegiance to underdog Democratic candidate Bill Bradley and vastly change the dynamics of the 2000 presidential election.
