Former USTR Official Gloomy on China
May 12, 1999

A former official with the U.S. trade representative's office believes China's opposition to the NATO bombing of Yugoslavia capped off by the bombing of the Chinese embassy in Belgrade easily could jeopardize the concessions China made to the U.S. in hopes of garnering backing for its admission to the WTO.

This official visited China shortly after the assault on Belgrade began and found the Chinese questioning the wisdom of the action.  "They were not really angry but disappointed at what we were doing.  They didn't think we belonged there and asked me how we justified this.  Do you really think your government should be doing this? they asked."

But that wasn't the worst of it.  "What the United States did, in announcing all the things that the Chinese had agreed to unilaterally," he said, "was bad form, and it ticked off the Chinese and in fact infuriated them."

The "negotiating dynamics" displayed by the United States were "very unusual.  When you're involved in prolonged negotiations and step forward to say these are all the things I got out of these guys, before there's any final deal reached," that did not sit well with the Chinese, he said.

When the Chinese embassy was bombed, "it just fired them up more," he added.  The outcome for the Chinese concessions to the United States "depends on how fast this cools off, and if it cools off.  But there's no way in hell the Chinese government can negotiate with the United States now; things are going to have to quiet down."

This official, who worked closely in the agricultural rounds of the North American Free Trade Agreement and the Uruguay Round international trade agreement, also is concerned about whether the agreements on wheat, citrus and beef actually were signed agreements.

"I was shown the language on beef at a meeting at the White House of all the private sector people.  I asked if that would be available and was told it would once all the translations were complete; then you can have a copy, I was told."

That, however, was weeks ago, "and I haven't seen a signed version yet.  Maybe it hasn't been signed; maybe we don't have any deals with the Chinese."

The initial Chinese man-in-the-street reaction to the Yugoslavia action by NATO was disappointment.  "I think it's fair to say they think very highly of the United States," this official said.  "But that was before we bombed their embassy, of course."

"I suppose there still is time to patch this up, but as long as we're bombing Belgrade, as long as the Chinese have the feelings I think they have, it's going to be very difficult for the Chinese government to make any deals with us involving concessions.  And we're not going to make any deal with them unless they give us concessions."

The "political winds" won't blow properly until the bombing stops, he added.  "I think they sincerely want to get into the World Trade Organization, but at what price?"