Clinton to Sign China Trade Bill

W A S H I N G T O N, Oct. 10 -- President Clinton’s signing of a bill thatpermanently normalizes trade relations with China is expected totranslate into billions of dollars in new sales for U.S. farmers,manufacturers and service companies.

Increased competition inside China, however, is expected toresult in massive layoffs, especially in China’s state-runcompanies.

The House approved the legislation normalizing trade relationsin May; the Senate passed it on Sept. 19. The measure revises a lawfrom the mid-1970s that subjected trade relations with communiststates to annual reviews.

The president invited key lawmakers to the South Lawn of theWhite House today to witness his signing of the U.S.-ChinaRelations Act of 2000, a hard-fought victory for theadministration.

China to Enter WTO

The legislation is an outgrowth of a U.S.-Chinese agreement lastfall under which China, as a condition for entering the World TradeOrganization, agreed to open its markets and reduce tariffs.

Clinton has argued that the more China opens its markets to U.S.products, the more fully it will unleash the potential of Chinacitizens.

It is China’s 1 billion residents that U.S. business is eyeing.

Labor conservative groups and human rights campaigners hadargued that the annual review allowed the United States a chanceeach year to pressure China on human rights, trade practices andweapons exports.

After it enters the WTO, China’s tariffs on U.S.-made goodswould drop from an overall average of 25 percent to 9 percent by2005. Negotiations at the WTO’s Geneva headquarters, however,recently stalled after three weeks of discussions in which theChinese negotiators appeared to be backpedaling on agreements madewith the United States or other nations.

U.S. Trade Representative Charlene Barshefsky is set to leave asearly as this week for Beijing to help clear the way for China’sinitiation into the WTO.

Barshefsky spokeswoman Amy Stilwell emphasized on Monday thatBarshefsky’s trip was not aimed at reopening any parts of the dealthe United States made with China last November. The Chinese knowthat the only way they will enter the WTO is by sticking to theterms of their agreements, she said.