Meat Industry INSIGHTS Newsletter

980656 Clinton to Discuss Trade Agenda in China

June 24, 1998

Beijing - President Bill Clinton and China's President Jiang Zemin will confront a number of key issues at their summit in Beijing, many of which were on the table at their last meeting in Washington in October.

Clinton's visit will be the first by a US president to China since the Chinese army's massacre of pro-democracy demonstrators around Beijing's Tiananmen Square in June 1989.

The trip has been dogged by controversies for Clinton at home, including allegations that China attempted to influence the outcome of the 1996 US elections by funnelling funds to the Democratic Party. China has denied any wrongdoing.

The US Congress is also investigating a decision by Clinton to allow Loral Space and Communications Ltd to launch a satellite from a Chinese rocket while the company was being investigated for alleged transfer of sensitive US missile technology to China.

Loral's chairman is a major donor to Clinton's party.

China's human rights record also has stirred opposition to Clinton's nine- day visit, which starts.

One of the key issues likely to be discussed during the trip, which ends on July 3 is trade.

China is seeking entry to the World Trade Organisation, arguing that it has made major concessions to join and should be rewarded for its sacrifices during the Asian financial crisis, including not devaluing its currency, the yuan.

China points to progress in reducing tariffs, now averaging 17%, to back its WTO claims. In the run-up to the summit, China said it planned to cut import tariffs on sedan cars by 20%age points from 80-100%.

But the United States wants China to open its markets further to US exports, including cars and chemicals, and to make way for more US services such as banking, securities and insurance.

China also has hinted at the prospect of major aircraft and power deals during the Clinton visit.

Washington says the further opening of China's markets is key to redressing what it sees as a lopsided trading relationship.

The United States says China had a surplus of $50 billion in bilateral trade in 1997. China says the true figure is much lower and that the United States should ease restrictions on high technology exports to China to reduce its deficit.

The United States also complains that use of unscientific sanitary measures is a barrier to exports of US agricultural goods including meat, citrus and Pacific Northwest wheat.

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