Maurice, We should really take care of "Charlene"!
Friday April 9, 11:59 pm Eastern Time
Zhu warns U.S. not to push too hard on trade
(New throughout, updates with Zhu speech, changes byline)
By Tabassum Zakaria
WASHINGTON, April 9 (Reuters) - China's Premier Zhu Rongji warned the United States on Friday that pushing too hard for
more trade concessions from China would risk scuttling a deal altogether.
The United States wants China to allow greater foreign investment and to lower tariffs, Zhu said in a speech at a dinner sponsored
by the National Committee on United States-China Relations.
''I said these are all possible but in a few years' time,'' he said through an interpreter. ''If you want too much too soon, in the end you may wind up with nothing,'' he
said.
Zhu and President Bill Clinton on Thursday announced substantial progress on a market-opening trade pact to bring China into the World Trade Organization
(WTO), but said more time was needed and they hoped to complete a deal before the end of the year.
Trade officials said agreement had been reached on a broad range of market access issues, including agriculture, insurance and telecommunications, but major
differences remained on banking, securities, and audio-visual and textile issues.
''I do think we are very, very close. Both we and the Chinese believe we will be able to bridge the remaining gaps,'' U.S. Trade Representative Charlene Barshefsky
said in an interview with Reuters Television.
China has made ''major concessions'' on trade and has been negotiating with the United States for 13 years about entry into the WTO, Zhu said. ''Surely the time
has come to end these negotiations and move forward and open up new channels for U.S.-China trade,'' he said.
The United States and China succeeded in negotiating agreements in agriculture on wheat, citrus and beef because China made ''the greatest concessions possible'' to
lift restrictions, Zhu said. ''So on this matter we can sign an agreement,'' he added.
Zhu said even if China joined the WTO, the United States was seeking a special agreement on discriminatory practices. ''So that is why so far to date we have not
been able to achieve a final agreement yet,'' he said.
China was not insisting that a trade agreement be signed during this visit to the United States, Zhu said, acknowledging concerns that the political climate may not be
conducive to Congress supporting a pact.
''We also understand the concerns of the U.S. administration because they are worried that perhaps Congress might not approve of whatever agreement might be
reached,'' Zhu said.
Anti-China sentiment has swept through Congress in recent weeks since allegations that China stole U.S. nuclear secrets surfaced. China has steadfastly denied those
charges.
China and the United States found common ground on protecting the environment, with Zhu and U.S. Vice President Al Gore agreeing Friday on the need to
reconcile economic development and environmental protection.
Aviation was also an area of positive developments with the United States and China signing an agreement to double flights between the two countries to 54 weekly
flights available to each country by April 2001.
Zhu, in his dinner speech, told an audience of many U.S. business executives, that China was prepared to open up its telecommunications sector and if Americans
passed up the opportunity to become involved, China would turn to Europe.
Addressing another sore spot in the United States -- its large trade deficit with China -- Zhu said if the United States worked with his country on trade in areas like
energy and telecommunications, the trade deficit would be reversed in two or three years and it would be China having the deficit.
But he said it was difficult to try and reach a trade balance if the United States continued to restrict exports of satellites and computers to China due to concerns about
their potential for military applications.
''So you don't want to sell us computers, you don't want to sell us satellites, all you want to sell us is wheat and citrus?'' Zhu said with a laugh. ''We can live eating
wheat and citrus products, but we can't live much better,'' he said.
Zhu also said ''in the not too distant future'' China would be able to announce that foreign insurance and banking companies could do business anywhere in China.
Related News Categories: airlines/aviation, politics, telecom, transportation, US Market News
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