TEXT B President Clinton’s
decision on Apr. 8 to send Chinese Premier Zhu Rongji packing without an
agreement on China’s entry into the World Trade Organization seemed to be a
massive miscalculation. The President took a drubbing from much of the press,
which had breathlessly reported that a deal was in the bag. The Cabinet and
White House still appeared divided, and business leaders were characterized as
furious over the lost opportunity. Zhu charged that Clinton lacked "the courage"
to reach an accord. And when Clinton later telephoned the angry Zhu to pledge a
renewed effort at negotiations, the gesture was widely portrayed as a
flip-flop. In fact, Clinton made the right decision in holding
out for a better WTO deal. A lot more horse trading is needed before a final
agreement can be reached. And without the Administration’s goal of a
"bullet-proof agreement" that business lobbyists can enthusiastically sell to a
Republican Congress, the whole process will end up in partisan acrimony that
could harm relations with China for years. THE HARD PART. Many
business lobbyists, while disappointed that the deal was not closed, agree that
better terms can still be had. And Treasury Secretary Robert E. Rubin, National
Economic Council Director Gene B. Sperling, Commerce Secretary William M. Daley,
and top trade negotiator Charlene Barshefsky all advised Clinton that while the
Chinese had made a remarkable number of concessions, "we’re not there yet,"
according to senior officials. Negotiating with Zhu over the
remaining issues may be the easy part. Although Clinton can signal U. S.
approval for China’s entry into the WTO himself, he needs Congress to grant
Beijing permanent most-favored-nation status as part of a broad trade accord.
And the temptation for meddling on Capital Hill may prove over-whelming. Zhu had
barely landed before Senate Majority Leader Trent Lott (R-Miss) declared himself
skeptical that China deserved entry into the WTO. And Senators Jesse A. Helms
(R-N. C.) and Emest F. Hollings (D-S. C.) promised to introduce a bill requiring
congressional approval of any deal. The hidden message from
these three textile-state Southerners: Get more protection for the U. S.
clothing industry. Hoping to smooth the way, the Administration tried, but
failed, to budge Zhu on textiles. Also left in the lurch: Wall Street,
Hollywood, and Detroit. Zhu refused to open up much of the lucrative Chinese
securities market and insisted on "cultural" restrictions on American movies and
music; He also blocked efforts to allow U. S. auto makers to provide fleet
financing. BIG JOB. Already, business lobbyists are blanketing
Capitol Hill to presale any eventual agreement, but what they’ve heard so far
isn’t encouraging. Republicans, including Lott, say that "the time just isn’t
right" for the deal. Translation: We’re determined to make it look as if Clinton
has capitulated to the Chinese and is ignoring human, religious, and labor
rights violations; the theft of nuclear-weapons technology; and the sale of
missile parts to America’s enemies. Beijing’s fierce critics within the
Democratic Party, such as Senator Paul D. Wellstone of Minnesota and House
Minority leader Richard A. Gephardt of Missouri, won’t help, either.
Just how tough the lobbying job on Capitol Hill will be become clear on
Apr. 20, when Rubin lectured 19chief executives on the need to discipline their
Republican allies, With business and the White House still trading charges over
who is responsible for the defeat of fast-track trade negotiating legislation in
1997, working together won’t he easy. And Republicans—with a wink—say that
they’ll eventually embrace China’s entry into the WTO as a favor to Corporate
America. Though not long before they torture Clinton. But Zhu is out on a limb,
and if Congress overdoes the criticism, he may be forced by domestic critics to
renege. Business must make this much dear to both its GOP allies and the White
House: This historic deal is too important to risk losing to any more partisan
squabbling Who plays the leading part in the deal in America