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To: r.edwards who wrote (66563)	2/12/2000 11:19:00 AM
From: Ruffian	Respond to of 152472

High-tech lobby pitches administration's plan before Congress -- Industry gears up to back China trade status SATURDAY, FEBRUARY 12, 2000 2:23 AM - CMP Media Feb. 11, 2000 (Electronic Engineering Times - CMP via COMTEX) -- WASHINGTON - The Clinton administration and the U.S. high-technology lobby have launched a high-profile campaign to persuade Congress to approve permanent trade status for China. Both sides in the debate said the issue tops the congressional trade agenda in this election year. The administration and its high-tech industry allies are pressing lawmakers to vote in favor of "permanent normal trade relations" that, along with Beijing's accession to the World Trade Organization (WTO), would normalize trade with China and open the vast Chinese market to eager consumer electronics, telecommunications and Internet companies. Typical of the pitch directed at Congress was a statement by Robert Holleyman, chief executive of the Business Software Alliance, a Washington-based antipiracy group: "A 'no' vote will only hamstring American high-tech companies and workers," Holleyman said in backing the administration's push for normal trade relations. This year's vote on China "is an unprecedented opportunity to open up new investment, trade and electronic-commerce opportunities for American companies," Holleyman said. Normal trade relations with China along with WTO membership "will help American companies tap into new economic opportunity and further boost the expansion of e-commerce around the world." Political clout The software alliance's members include Apple Computer, Compaq Computer, Microsoft, and other U.S. hardware and software companies that have seen their political clout increase steadily with lawmakers. President Clinton notified Congress in a Jan. 24 letter that he would make normal trade relations with China "a top priority" in 2000. "China has agreed to grant the United States significant new access to its market, while we have agreed simply to maintain the market access policies we already apply to China by granting it permanent" trade status, the president said. Contentious debate However, Congress has already signaled the White House that the congressional debate on China's trade status will be politically charged and contentious. Earlier this month, for instance, the House approved a measure along partisan lines that would increase U.S. military support to Taiwan. The vote drew immediate denunciations from Beijing, which considers Taiwan a renegade province. Telecommunications and networking companies with a huge stake in the outcome of the trade debate have also weighed in in support of the administration's position. Matthew Flanigan, president of Telecommunications Industry Association (Arlington, Va.), said the group "supports the president's call for unconditional, timely approval of [normal trade relations] for China." Chinese entry into the WTO will begin a process of opening its markets to foreign competition. U.S. companies like San Diego-based Qualcomm Inc. have already negotiated deals with China's state-owned telecom companies and equipment manufacturers to license its code-division multiple access (CDMA) technology. A deal announced early this month requires Chinese equipment makers to buy their CDMA chip sets from Qualcomm. Industry analysts said Qualcomm's partner in the deal, China Unicom, is trying to use the deal along with China's WTO membership as leverage to gain market share in the country's vast wireless phone market. State-owned China Telecom controls an estimated 95 percent of the Chinese market. "From cell phones to routers to fiber-optic cable, U.S. telecom exports to China are contingent upon Congress' positive action on [the trade normalization] issue," TIA's Flanigan said. Conservatives in Congress, suspicious of China's global intentions, and human rights groups that want approval of normal trade status made contingent on Chinese domestic reforms are expected to fight the president's proposal. eetimes.com By: George Leopold Copyright 2000 CMP Media Inc. QCOM 132 -4 15/16 Enter Symbol: Enter Keyword: